Focusing on light industrial property, which tends to be a late cycle performer, Hansteen (HSTN) continued to show strong growth in 2015, and a combination of a portfolio valuation uplift and a healthy dividend translated into a total shareholder return of 17.6p.
Normalised income profit, which excludes profits or losses from property sales, would have been 10.6 per cent higher at £52.2m, but with nearly half of its property investments in Germany, the euro's decline meant that in sterling terms profit was down from £48.2m to £47.2m. However, headline profit was boosted by a valuation uplift of £110.8m, significantly ahead of the £62.9m revaluation surplus recorded a year earlier. Hansteen also made a net £4.7m profit from the £192.1m sale of Hansteen Property Unit Trust, while other sales generated a further £8.7m in profit.
There was also further progress in building its stake in the Ashtenne Industrial Fund Unit Trust, a vehicle set up and then sold by Hansteen in 2005. Three transactions saw Hansteen's stake jump from 36.7 per cent to 81.8 per cent, at a bargain 8.4 per cent discount to the trust's net asset value.
Analysts at Peel Hunt are forecasting adjusted net asset value at December 2016 of 115p, compared with 111p a year earlier.
HANSTEEN (HSTN) | ||||
---|---|---|---|---|
ORD PRICE: | 111.2p | MARKET VALUE: | £828m | |
TOUCH: | 110.9-111.2p | 12-MONTH HIGH: | 126p | LOW: 103p |
DIVIDEND YIELD: | 4.7% | TRADING PROPERTIES: | £10.8m | |
PREMIUM TO NAV: | 6% | NET DEBT: | 59% | |
INVESTMENT PROPERTIES: | £1.06bn |
Year to 31 Dec | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2011 | 80 | 8.9 | 1.3 | 4 |
2012 | 81 | 46.2 | 6.2 | 4.5 |
2013 | 86 | 65.3 | 9.1 | 4.8 |
2014 | 99 | 131 | 17.6 | 5 |
2015 | 105 | 171 | 21.3 | 5.25* |
% change | +6 | +31 | +21 | +5 |
Ex-div: 21 Apr Payment: 19 May *Excludes special dividend of 3p a share |