The release of full-year profits for Hansteen Holdings (HSTN) was overshadowed by news that the commercial property landlord is to sell its portfolio of Dutch and German properties at a 6 per cent premium to the December 2016 valuation, and a 30 per cent premium to their value 12 months previously. After expenses, this will leave Hansteen with around £650m, a substantial proportion of which is expected to be returned to shareholders. The sale will leave Hansteen with a UK portfolio valued at around £677m.
An upward revaluation in the property portfolio (although not as large as in 2015) and higher rental income pushed adjusted net asset value per share up by 16 per cent to 128.9p at the year-end. Demand for smaller urban distribution and light industrial warehouses, as internet retailers seek out appropriate 'last mile' distribution centres to facilitate deliveries, helped to drive normalised income profit or recurring earnings up by 29.4 per cent to a record £61.1m. On top of this, asset sales netted a further profit of £4.7m.
Acquisitions included the 18.2 per cent of the Ashtenne Industrial Fund Unit Trust that Hansteen did not own, for £49.7m, and after the year-end it made an offer for Industrial Multi Property Trust, valued at £25.2m.
Analysts at Jefferies expect adjusted NAV to reach 132p by the year-end.
| HANSTEEN (HSTN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 122.7p | MARKET VALUE: | £913m | |
| TOUCH: | 122.6-122.8p | 12-MONTH HIGH: | 130p | LOW: 95p |
| DIVIDEND YIELD: | 4.8% | TRADING PROPERTIES: | £10m | |
| DISCOUNT TO NAV: | 1% | |||
| INVESTMENT PROP: | £1.72bn | NET DEBT: | 79% | |
| Year to 31 Dec | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p)* |
|---|---|---|---|---|
| 2012 | 81 | 46 | 6.2 | 4.5 |
| 2013 | 86 | 65 | 9.1 | 4.8 |
| 2014 | 99 | 131 | 17.6 | 5 |
| 2015 | 105 | 171 | 21.3 | 5.25 |
| 2016 | 124 | 120 | 14.8 | 5.9 |
| % change | +18 | -30 | -31 | +12 |
Ex-div: 20 Apr Payment: 18 May *Excluding special dividend of 3p a share paid in 2016 | ||||
