REIT Watch: Hammerson Reports Higher H1 Net Asset Value on Rising Rents

on Jul 29, 2013

**United Kingdom**

**Hammerson Reports Higher H1 Net Asset Value on Rising Rents** Thursday July 29th: Hammerson, a real estate investment trust with a portfolio of shopping centres, retail parks and offices, said today that the value of its properties increased in the first half on rising rents.
Adjusted net asset value climbed to 551p on June 30 from 542p six months earlier, the London-based REIT

said in a statement. Adjusted earnings per share (EPS) rose 8.8 percent to 11.1p and Hammerson boosted its dividend for the first half by 7.8 percent to 8.3p.
Rental income rose by 2.5 percent, while occupancy rates topped the REIT’s 97 percent target at 97.4 percent at the end of June. Chief executive David Atkins pointed at the UK, where most of the company’s shopping centres are located, over France as showing stronger signs of recovery despite the slowdown in consumer spending across Europe since the 2008 financial crisis. “While household budgets in the UK and France remain under pressure, there are encouraging signs of improvement in macro-economic conditions in the UK,” Atkins said today in the results’ statement.

Hammerson and its partners are planning to spend about ₤2 billion in London over the next five years. The REIT’s proposed extension of Brent Cross is expected to attract 20 million visitors a year when completed, and the company will submit a joint application with Australian giant Westfield for a new shopping centre in Croydon. “In terms of the really big capital plays it is London and the South East where the economy is stronger and where we have seen the retailer demand,” Atkins explained.

Investec reaffirmed its “reduce” rating on Hammerson and gave it a price target of 525p in a report issued to investors today. A total of two investment analysts have rated the shares with a “sell” rating, six have assigned it a “hold” rating and nine have assigned a “buy” rating. Hammerson currently has an average rating of “hold” and a consensus price target of 553.20p.

**Green REIT to Spend €155 Million in 2013**
Green REIT, the first Irish real estate investment trust, is planning to spend half of the €310 million (₤268 million) it raised from its recent IPO on Irish commercial property.
Stephen Vernon, chairman of the REIT’s manager, said that starting in September “we are hoping to spend a substantial part of the €310m equity we have raised in the first 12 months – and perhaps half of it in the run-up to Christmas”. Green REIT is planning to allocate about 75 percent of its funds into quality office buildings, 10-15 percent in industrial investment and the rest in retail blocks.
“We’re about trying to target specific assets that we think have potential to add value either through asset management or through development in the form of refurbishment or new development,” Vernon added.
!m[Green REIT to Spend €155 Million in 2013](/uploads/story/4411/thumbs/pic1_inline.jpg)
**United States**
**Independence Realty Trust Reveals IPO Terms**
Independence Realty Trust, a real estate investment trust with a portfolio of over 2,000 apartment units, announced on Friday that it was planning to raise $42 million (₤27 million) by selling 4 million shares at a price range of $10 to $11. At $10.50 apiece, Independence Realty Trust would have a fully diluted market value of $101 million (₤65.6 million).
The REIT was founded in 2009 and delivered $16 million (₤10.4 million) in revenue for the 12 months ended March 31. It intends to list on the New York Stock Exchange under the symbol IRT.
**Hammerson’s share price was 525.00p as of 29.07.2013, 14.10 BST.**
**Green REIT’s share price was €1.15 as of 29.07.2013, 14.10 BST.**