Hudson's Bay shares up after disclosing new details from investor presentation

Tue Apr 11, 2017 1:06pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

TORONTO (Reuters) - Hudson's Bay Co (HBC.TO: Quote) shares rose more than 8 percent on Tuesday after the Canadian department store operator revealed additional financial details about its business on capital structure, debt and real estate.

Shares increased 8.5 percent to C$11.95 around midday in Toronto.

According to a new investor presentation posted on its website, Hudson's Bay said it has a stable capital structure that included non-recourse mortgage debt, a floating rate term loan balance of $500 million, and flexible access to capital.

"There's some good stuff on capital structure, and leverage and how the debt should be looked at. People have been interested in that for a while," said M Partners analyst, Steven Salz.

Last week during an analyst conference call, Hudson's Bay's said it was looking at a "major reinvention" of its business operations and gave its strongest signal yet of a possible initial public offering of its real estate assets. [nL2N1HD0S3]

The Saks Fifth Avenue owner, which has an overall real estate portfolio worth about $11 billion, said it was targeting an internal rate of return of at least 10 percent on its growth projects.

It plans to introduce automation technologies at its distribution and online fulfillment warehouses across North America, among other projects. The company said its robotics system in Toronto, installed late last year, can process roughly 4,200 orders per hour.

(Reporting by Solarina Ho; Editing by Bernard Orr)

 
FILE PHOTO: A man exits a Hudson's Bay department store in Toronto, Ontario, Canada June 6, 2016. REUTERS/Chris Helgren/File Photo - RTX2ZICT