Hammerson has retained the dubious honour of being the most shorted real estate stock in the UK.
Investors short sell by borrowing shares and selling them, expecting their value will fall. Then, they buy them back and make a profit before they are due to be returned.
According to analysis from research firm Edison Group, there were 20 declarations of short positions in real estate companies in the week to 13 March, the second highest level in four years.
Hammerson had 7.7% of its issued share capital shorted as of that week, according to the analysis. Intu Properties was next, with 4.7%. The amount of stock being shorted in each company had fallen over the previous month.
Hammerson has lost about 80% of its stock’s value over the past year.
During that week, said the team at Edison, real estate shorts accounted for 5% of the total number of shorts in the UK.
“A key concern is reduced cash flows as tenants defer or default on rents,” said Edison data analyst Max Hayes in a note on the market. “REITs invested in retail property – 85% of real estate declarations – drove the increase.”
To send feedback, e-mail tim.burke@egi.co.uk or tweet @_tim_burke or @estatesgazette
