Thanks to the lockdown, only a quarter of shopping centre Hammerson’s tenants are allowed to remain open, says Joanna Bourke in the Evening Standard. Shops in its sites in France are subject to a 6pm curfew. It has therefore been forced to agree “rent holidays, deferrals and ... monthly payments for some firms across its estate”. Hammerson collected“just 41%” of the rent it was due to receive for the first quarter of 2021, though this is an improvement on what it received when the first lockdown was imposed.
Even before the crisis, Hammerson was under “sustained pressure”, with retailers struggling to contend with “online competition, high business rates and rising wage costs”, says Louisa Clarence-Smith in The Times. Since March retailers have paid only about 50% of the rent owed to landlords. With the shares down by 80% from the peak and finance chief James Lenton, who only joined the company in September 2019, set to quit, analysts are warning that the company is “still too highly geared”, with a 42% loan-to-value ratio even after a £552m survival rights issue in August.
The fate of rival property firm Intu is a cautionary tale for Hammerson’s investors, says George Hammond in the Financial Times. It was forced into administration last summer and then suffered the indignity of a “lack of willing buyers” for its portfolio of shopping centres. Even the Trafford Centre in Manchester, considered “the jewel in Intu’s crown”, is now owned by one of its lenders after a sales process “failed to attract any viable bids”.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Spot the Dog: £67bn in underperforming funds revealedAround 137 funds consistently underperformed their benchmark, BestInvest's Spot the Dog report finds. Which funds are in the dog house?
-
What does a BP and Shell merger mean for the UK oil industry?BP’s struggles have made it vulnerable to a takeover. Could it merge with Shell to create a British behemoth?
-
What does a potential BP and Shell merger mean for the UK oil industry?
BP’s struggles have made it vulnerable to a takeover. Could it merge with Shell to create a British behemoth?
-
Should you invest in emerging markets?Emerging markets offer strong, long-term growth and excellent value, says Rupert Hargreaves
-
How to invest in frontier marketsFrontier markets can be extremely risky, but they offer access to exotic stocks in rapidly developing countries
-
Should you put your trust in investment trusts?British investors have steered clear of investment trusts in recent years. They are missing a trick, says Max King
-
Renewable energy investing: who is paying for the green revolution?Investors in renewables have not been rewarded, says Bruce Packard. Will they fund the government’s plans?
-
The best ways to invest in Vietnam – Asia’s communist dynamoVietnam has long been one of our favourite markets. The prognosis remains auspicious, says Alex Rankine.
-
India is a new global powerhouse — should you invest?India’s growth rate has slowed recently, but there is still ample scope for investors to benefit from its development.
-
Why Chinese stocks are so far out of favourThere’s little appetite for Chinese stocks despite low valuations.
