Hammerson plc R.E.I.T. (GB:HMSO)
LSE:HMSO
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Hammerson plc R.E.I.T.
(LSE:HMSO)
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Rating:69Neutral
Price Target:
321.00 p
▲(6.08% Upside)
Action:ReiteratedDate:03/03/26
The score is driven primarily by an improving but still volatile financial profile (turnaround progress tempered by revenue and cash-flow inconsistency). Technicals add support via a clear uptrend, while valuation is a key positive with a low P/E and decent yield. Earnings-call guidance was constructive, though partly reliant on transactions and tempered by dilution and macro risks.
Positive Factors
Net rental income & occupancy recovery
A 23% NRI uplift reflects stronger recurring rental cash generation and improving tenant demand; combined with high occupancy this supports stable income, better rent renewal levers and durable cash flow tailwinds for the next 2–6 months as leasing momentum converts to sustained rent rolls.
Negative Factors
Inconsistent cash generation
Volatile historical cash flows indicate that reported earnings may not consistently convert to cash. This undermines the sustainability of high payout targets and funds for capex/acquisitions, requiring continued external financing or disposals if operating cash weakens over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Net rental income & occupancy recovery
A 23% NRI uplift reflects stronger recurring rental cash generation and improving tenant demand; combined with high occupancy this supports stable income, better rent renewal levers and durable cash flow tailwinds for the next 2–6 months as leasing momentum converts to sustained rent rolls.
Read all positive factors
Hammerson plc R.E.I.T. (HMSO) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.56B
Dividend Yield4.33%
Average Volume (3M)827.00K
Price to Earnings (P/E)7.2
Beta (1Y)1.16
Revenue Growth16.30%
EPS GrowthN/A
CountryUK
Employees125
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.30
Shares Outstanding531,622,200
10 Day Avg. Volume594,517
30 Day Avg. Volume826,999
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)0.79
Price to Sales (P/S)19.28
P/FCF Ratio23.87
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£357.50Price Target Upside18.14% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)0.23
Revenue Forecast (FY)£264.42M
Hammerson plc R.E.I.T. Business Overview & Revenue Model
Company Description
At Hammerson, we create vibrant, continually evolving spaces, in and around major cities, where people and brands want to be. We seek to deliver value for all our stakeholders and to create a positive and sustainable impact for generations to come...
How the Company Makes Money
Hammerson makes money primarily from income generated by its investment property portfolio. The main revenue stream is rental income paid by tenants that lease space in Hammerson-owned shopping centres and outlets; leases may also include service ...
Hammerson plc R.E.I.T. Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and financial reset: strong NRI growth (+23%), improved profitability (EPRA +5%, IFRS +ve), portfolio revaluation (+33%), high occupancy and footfall gains, accretive JV buyouts and solid liquidity. Management provided confident guidance for 2026 (NRI +20%, EPRA earnings +15%) and a clear plan to drive further value via leasing, repositioning and selective accretive acquisitions. Key negatives were that part of the earnings uplift was transaction-driven (acquisitions and disposals), EPS dilution from the equity issuance, remaining cost and finance headwinds, and macro risks in the UK/France that could blunt momentum. On balance, the highlights substantially outweigh the lowlights.Positive Updates
Strong Net Rental Income Growth
Net rental income increased 23% year-on-year to GBP 180m, driven by JV acquisitions and like-for-like rental growth of 3% (in line with guidance).
Negative Updates
Earnings Growth Partly Driven by Transactions
Adjusted earnings excluding Value Retail disposal and acquisitions would have been weaker (commentators highlighted that rebased like-for-like earnings were lower), indicating recent growth is materially supported by disposals and JV buyouts rather than only organic performance.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Net Rental Income Growth
Net rental income increased 23% year-on-year to GBP 180m, driven by JV acquisitions and like-for-like rental growth of 3% (in line with guidance).
Read all positive updates
Company Guidance
Management guidance for FY2026 and beyond included net rental income growth of c.20% (driven by a full‑year impact of JV acquisitions and like‑for‑like rental growth of 4–5%), EPRA earnings growth of ~15% to around £120m with EPS growth of ~10% (diluted by last year’s equity issuance), and net finance costs of c.£60m; they expect flagship gross‑to‑net ~80%, administration costs broadly flat, and the EPRA cost ratio to fall by 3–4 percentage points in both 2026 and 2027 (below 30% in 2027). Capital guidance is c.£30m for major repositionings plus c.£34m of leasing CapEx (to be funded from FFO after dividends from 2027), dividend payout maintained at 80–85%, and balance‑sheet metrics include c.£1bn liquidity, LTV ~39% and net debt/EBITDA (annualised) ~8.1x, with management retaining a clear line of sight to further earnings growth into 2027 (and a medium‑term EPS CAGR target of c.8–10% off the 2024 rebased base).Hammerson plc R.E.I.T. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
63
Positive
Cash Flow
54
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 86.30M | 116.70M | 127.80M | 131.40M | 127.70M |
| Gross Profit | 85.40M | 67.20M | 84.00M | 87.90M | 82.90M |
| EBITDA | 299.60M | 27.80M | 9.70M | 17.60M | -5.90M |
| Net Income | 232.10M | -526.30M | -51.40M | -164.20M | -429.10M |
Balance Sheet | |||||
| Total Assets | 3.93B | 3.48B | 4.33B | 4.54B | 4.91B |
| Cash, Cash Equivalents and Short-Term Investments | 349.90M | 737.90M | 472.30M | 218.80M | 315.10M |
| Total Debt | 1.69B | 1.52B | 1.67B | 1.69B | 1.87B |
| Total Liabilities | 1.84B | 1.66B | 1.87B | 1.95B | 2.17B |
| Stockholders Equity | 2.09B | 1.82B | 2.46B | 2.59B | 2.75B |
Cash Flow | |||||
| Free Cash Flow | 69.70M | -150.00M | 19.60M | 33.20M | -91.40M |
| Operating Cash Flow | 103.30M | 4.50M | 38.30M | 69.60M | -70.30M |
| Investing Cash Flow | -583.20M | 475.00M | 261.30M | 154.10M | -11.40M |
| Financing Cash Flow | 67.80M | -211.80M | -45.00M | -322.70M | -363.70M |
Hammerson plc R.E.I.T. Technical Analysis
Negative
302.60
Price Trends
333.56
Negative
321.49
Negative
301.08
Positive
Market Momentum
-8.71
Positive
35.46
Neutral
-1.19
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HMSO, the sentiment is Negative. The current price of 302.6 is below the 20-day moving average (MA) of 321.56, below the 50-day MA of 333.56, and above the 200-day MA of 301.08, indicating a neutral trend. The MACD of -8.71 indicates Positive momentum. The RSI at 35.46 is Neutral, neither overbought nor oversold. The STOCH value of -1.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HMSO.
Hammerson plc R.E.I.T. Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | £4.18B | 7.70 | 7.16% | 6.67% | 43.70% | 40.28% | |
75 Outperform | £3.43B | 3.98 | 7.75% | 5.85% | -20.83% | ― | |
73 Outperform | £3.95B | 11.16 | 3.85% | 6.34% | 10.69% | 135.58% | |
71 Outperform | £301.03M | 5.78 | 6.35% | 9.66% | 84.02% | 53.97% | |
69 Neutral | £2.46B | 3.50 | 8.78% | 2.58% | -0.04% | 655.16% | |
69 Neutral | £1.56B | 7.17 | 11.77% | 4.33% | 16.30% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
GB:HMSO
Hammerson plc R.E.I.T.
293.80
62.34
26.93%
GB:BLND
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343.20
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GB:LAND
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GB:LMP
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GB:NRR
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9.23%
Hammerson plc R.E.I.T. Corporate Events
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Hammerson Publishes 2025 Reports and Sets Date for 2026 AGM
Positive
Mar 26, 2026
Hammerson has published its 2025 Annual Report and Financial Statements, the notice of its 2026 annual general meeting, proposed amendments to its Restricted Share Scheme and related proxy materials, making them available via regulatory storage me...
Executive/Board ChangesRegulatory Filings and Compliance
Hammerson CEO Exercises Recruitment Share Award and Sells Portion to Cover Tax
Neutral
Mar 19, 2026
Hammerson has disclosed that chief executive and executive director Rob Wilkinson has exercised nil-cost options over 153,350 ordinary shares granted under a bespoke recruitment award scheme. The award vested on 15 March 2026, and the options were...
Executive/Board ChangesRegulatory Filings and Compliance
Hammerson Awards Nil‑Cost Shares to Senior Executives Under Incentive Plans
Neutral
Mar 17, 2026
Hammerson has granted share awards to several senior executives and persons discharging managerial responsibilities under its Restricted Share Scheme and Deferred Bonus Share Scheme. The awards, based on an average share price of 323.56 pence but ...
DividendsShareholder Meetings
Hammerson Sets Terms and Tax Treatment for 2025 Final Dividend as PID
Neutral
Mar 17, 2026
Hammerson has confirmed details of its recommended final dividend of 8.56p per share for the year ended 31 December 2025, which will be paid entirely as a Property Income Distribution and is subject to shareholder approval at the 2026 AGM. The com...
DividendsShareholder Meetings
Hammerson Sets 2025 Final Dividend and Cross‑Market Payment Timetable
Positive
Feb 25, 2026
Hammerson’s board has recommended a final cash dividend of 8.56 pence per ordinary share for the year ended 31 December 2025, to be paid as a Property Income Distribution and subject to approval at the 2026 Annual General Meeting. The compan...
Business Operations and StrategyDividendsFinancial Disclosures
Hammerson swings back to profit as prime retail portfolio powers growth
Positive
Feb 25, 2026
Hammerson reported a strong turnaround for 2025, with total net rental income rising 23% to £180m and portfolio value climbing 33% to £3.5bn following major investments in key UK retail destinations and joint venture acquisitions. EPRA e...
Executive/Board Changes
Hammerson Strengthens Board with Appointment of Michelle McGrath as Independent Non-Executive Director
Positive
Feb 6, 2026
Hammerson plc has appointed Michelle McGrath as an Independent Non-Executive Director, effective 9 March 2026, in a move aimed at deepening the board’s expertise in property and capital markets. McGrath, formerly an Executive Director at Sha...
Financial Disclosures
Hammerson Sets Date for 2025 Full-Year Results Announcement
Neutral
Jan 28, 2026
Hammerson plc has announced that it will publish its full-year results for the financial year ended 31 December 2025 on 25 February 2026, with an analyst presentation scheduled that morning in London and further access details to be made available...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.