Shares of Hammerson (LON: HMON) are trading around 20% lower today as the troubled shopping-centre operator struggles to cope with the consequences of the pandemic and lockdown measures.
The mall owners’ fall from grace is apparent, as it can be seen in examples of Intu and Hammerson, which a host of major shopping centres including the Bullring in Birmingham and London’s Brent Cross.
“This is driven by the impact of Covid-19 on operations — rental concessions being negotiated, increasing vacancies, high tenant incentives and letting commissions; as well as oversupply across subsectors resulting in negative reversions on renewals,” portfolio manager Mvula Seroto comments.
In other news, Hammerson is considering to vote against the New Look’s company voluntary agreement (CVA). As one of New Look’s biggest landlords, Hammerson is leaning towards voting against the CVA in today’s critical vote.
Hammerson share price is down around 20% to trade below 6.00p.