15th February 2016
As Hammerson reports its full year results Ian Forrest, investment research analyst at The Share Centre, explains why he is backing the business and calling its stock a ‘buy’…
Property developer Hammerson said this morning that it remains confident about its future performance as it reported a good set of final results.
Results showed net rental income rising 4.3% to £318.6m with adjusted earnings up 12.6% to 26.9p per share. Interested investors should also acknowledge that the final dividend was raised by 10.3% to 11.6p.
Hammerson’s focus on retailing over the last three years has certainly paid off and the group is now entirely focused on retail property in the UK and France.
With UK consumer sentiment at a healthy level and encouraging signs in France, investors should appreciate that prospects remain good.
Furthermore, if the fall in the oil price feeds through, this could also provide a boost in consumer spending.
The stock has underperformed the market, in common with other property groups, over the past year and the shares now trade at a 21.8% discount to the last reported adjusted net asset value.
Subsequently, we recommend Hammerson as a ‘buy’ for medium risk investors with a balanced portfolio.