Profits up 20 per cent at Hansteen

The £150m Spencer portfolio acquired in December 2011 accounts for much of last year's increase. Hansteen's acquisitions invariably boost profits because their rental yield (8.5 per cent in the case of the Spencer portfolio) is so much higher than the group's cost of debt (3.2 per cent at year-end). Following five further acquisitions last year and one in January - at an aggregate cost of £138m and with a double-digit average rental yield - Hansteen's growth trajectory this year should be similar.

The rent roll now totals £78m, compared to £66m at the start of last year. That's thanks to occupancy gains as well as these acquisitions - the Spencer portfolio's vacancy rate has fallen from 32 per cent to 21 per cent since purchase.

Last year's spending spree was funded partly by selling improved, lower-yielding properties to owner-occupiers and small-scale investors. Last year the company generated £51m by selling 38 assets at an average rental yield of 5.5 per cent. Net debt also increased from £307m to £325m at the year-end - a loan-to-value ratio of 39 per cent.

Broker Investec Securities expects adjusted net asset value of 86p for 2013 (from 83p in 2012).