Retailers' growing demand for storage depots to fulfil online orders has been a boon for Hansteen (HSTN). The investor in light industrial properties, which it rents out to nearly 5,300 tenants in the UK and continental Europe, posted a 28 per cent rise in underlying profits to £29.2m in the first half of 2016.
Hansteen signed a total of 928 new and renewed leases, up from 825 in the comparable period, helping rental income grow 11 per cent. Coupled with higher profits from associates, that explains the earnings uplift. Adjusted NAV also grew 8 per cent to 120.5p as the pound depreciated against the euro (more than half of Hansteen's net assets are on the continent) and the underlying value of the group's portfolio rose across its three territories.
Management netted about £15m from 11 sales, a return of over 15 per cent based on the properties' valuation in December. It also lowered its borrowing costs by refinancing in the Netherlands and - after the period ended - the UK. And it took total control of Ashtenne Industrial, a fund it sold in 2005, in late July.
Broker Peel Hunt expects an adjusted net asset value of 124p at the end of December, up from 111p a year earlier.
| HANSTEEN (HSTN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 116p | MARKET VALUE: | £863m | |
| TOUCH: | 115.8-116p | 12-MONTH HIGH: | 126p | LOW: 95p |
| DIVIDEND YIELD: | 4.6% | TRADING PROPERTIES: | £10.1m | |
| PREMIUM TO NAV: | NIL | NET DEBT: | 66% | |
| INVESTMENT PROPERTIES: | £1.22bn | |||
| Year to 30 Jun | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 101 | 104 | 12.8 | 2.1† |
| 2016 | 116 | 55 | 6.9 | 2.2 |
| % change | +15 | -47 | -46 | +5 |
Ex-div: 20 Oct Payment: 18 Nov †Excludes special dividend of 3p a share | ||||
