Industrial-estate landlord Hansteen Holdings (HSTN) ticked nearly all the right boxes last year, and produced record profits from its growing portfolio of regional industrial property in the UK and Germany. Taking advantage of the improving economic climate and growing interest in higher-yielding property, Hansteen increased the size of its owned or co-owned portfolio by over 50 per cent to £1.5bn, with £1bn directly attributable to Hansteen.
Rental income was up from £71.3m to £86.8m, but there's still plenty of scope for growth. For while the passing rent on Hansteen’s attributable investment portfolio yielded 8.7 per cent at the year end, contracted rent for the year ahead is yielding 9.1 per cent - and the figure would be 10.9 per cent if all vacancies were filled and rents marked to market.
Property acquisitions totalled £91m, but this did not include the purchase of a 27.5 per cent stake in the Ashtenne Industrial Fund for £53m - a 22 per cent discount to net asset value. This deal involved the transfer of the management contract, worth around £3m a year, to Hansteen.
Analysts at Oriel Securities expect adjusted NAV to rise from 91p to 99p by the year end.
| HANSTEEN HOLDINGS (HSTN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 111p | MARKET VALUE: | £711m | |
| TOUCH: | 110-111p | 12-MONTH HIGH: | 115p | LOW: 79p |
| DIVIDEND YIELD: | 4.3% | TRADING PROPERTIES: | £14.7m | |
| PREMIUM TO NAV: | 29% | |||
| INVESTMENT PROP: | £835m | NET DEBT: | 78% | |
| Year to 31 Dec | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 84 | -21.3 | -3.9 | 3.2 |
| 2010 | 83 | 33.2 | 6.6 | 3.5 |
| 2011 | 80 | 8.9 | 1.3 | 4 |
| 2012 | 81 | 46.2 | 6.2 | 4.5 |
| 2013 | 86 | 65.3 | 9.1 | 4.8 |
| % change | +6 | +41 | +47 | +7 |
Ex-div: 23 Apr Payment: 21 May | ||||
