Hammerson explaination

Hi all,

Please can someone explain to me why Hammerson (HMSO) dropped 90% overnight?

Let’s pretend I don’t know anything laughs nervously


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It’s not coming back is it :frowning:

Like most REITs involved in Shopping Centres they have debts to pay but they’re not collecting rent. This is where the REIT system has truly screwed investors over as the majority of profits are paid out as dividends there is little left in reserve to cover costs when times get hard.

Id suspect it will take a number of years to recover. Bricks & Mortar retail is unlikely to have large investments over the coming years. One ray of hope would be a US-UK trade deal which could make the UK market more appealing to big US retailers.

It’s a shame the UK Gov just took the nuclear option, because I doubt that trade deal is happening for a while…

Well, for Hammerson in particular, the trade deal should not have much impact even if it gets done quickly. If that’s your investment angle, you’re really clutching at straws :wink:

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I’d agree with this. Perhaps me calling it a ‘ray of hope’ was too much. Its a future possible catalyst at most, lots of other things need to fall in line for these companies to get back on track

This wasn’t a secret

Maths on the rights issue and massive capital reorganisation suggests an ex rights price about 24/25/26p (vague as I’m doing it with massive roundings)… and thats about where it is.

So now you’ve got some rights and some other hammerson related shares coming your way as part of the corporate action

Have a read of the RNS or wait for a FreeTrade email or a portfolio update… not sure FT will display the Rights in your portfolio… but they might…Rights are awkward… especially if your holding is/was in an ISA

Did FT not send a corporate action notification beforehand? @Markyyys

Still also just maths.

You can’t issue vast amounts of new shares at 15p when your share price was £3… the dilution is massive… in fact it’s about 25p… exactly where the price fell to.

So. Not a secret. Just maths.

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come on FT… please hurry and share the details on the Rights Issue.

At present the 24:1 HMON shares are about half the rights issue price.

In effect i could double holding by going to market rather than buying my RI

But until FT make it clear how and when RI can be taken up AND/OR how and when you can sell rights then it’s difficult to make considered decisions!

(I know I’ve over simplified the situation… but it’s far too complex to explain fully - I have read the RNS, I do get it, i just know brokers often have different approaches/cut off dates etc so want some clarity from FT)