Industrial-estate landlord Hansteen Holdings (HSTN) delivered another year of solid growth, doubling profits and rewarding shareholders with a special dividend of 3p a share. That cranks up the yield on the current share price to an appetising 7 per cent.
The group has been busy selling properties and recycling the proceeds into new investments. Assets sold raised £315m for a profit of £26.1m, while £268m was spent on acquisitions. These came with an average rental yield of 9.8 per cent and a vacancy rate of 16 per cent. On top of this, Hansteen bought a further 9.2 per cent stake in the Ashtenne Industrial Fund for £26m, and after the year-end spent another £11m on a 4.1 per cent stake, taking its ownership to 40.8 per cent.
Net debt fell slightly to £416m, but valuation gains made the decline in the loan-to-value ratio more pronounced, from 49.3 per cent to 41.1 per cent. In total, the portfolio that is owned or co-owned by Hansteen was valued at £1.6bn, with a rent roll of £138m a year giving a yield of 8.5 per cent. If all vacancies were filled and all rents marked to market, Hansteen reckons the rent roll would rise to £171m.
Analysts at Peel Hunt are forecasting 2015 year-end adjusted net asset value of 106p (from 102p in 2014).
| HANSTEEN HOLDINGS (HSTN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 114.2p | MARKET VALUE: | £782m | |
| TOUCH: | 114.2-114.3p | 12-MONTH HIGH: | 120p | LOW: 98p |
| DIVIDEND YIELD: | 4.4% | TRADING PROPERTIES: | £14.2m | |
| PREMIUM TO NAV: | 16% | |||
| INVESTMENT PROP: | £1.11bn | NET DEBT: | 62% | |
| Year to 31 Dec | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 83 | 33 | 6.6 | 3.5 |
| 2011 | 80 | 9 | 1.3 | 4 |
| 2012 | 81 | 46 | 6.2 | 4.5 |
| 2013 | 86 | 65 | 9.1 | 4.8 |
| 2014 | 99 | 131 | 17.6 | 5* |
| % change | +15 | +101 | +93 | +4 |
Ex-div: 23 Apr Payment: 21 May *Excludes special dividend of 3p a share | ||||
