Hansteen's (HSTN) management is a step closer to boosting shareholder income. After completing the €1.28bn (£1.18bn) sale of its German and Dutch portfolio in June, management has announced plans to return £580m to shareholders before the year’s out. The preferred method at present is via a share buyback, says co-chief executive Ian Watson.
The imbalance between supply and demand for industrial property in the regions continued to benefit Hansteen during the first six months of the year. Estimated rental values increased by 2.1 per cent on average across the portfolio, with the average rent £3.66 per sq ft compared with £3.41 sq ft over 2016. A rise in e-commerce has also helped, with around 30 per cent of its estate occupied for online delivery storage. Overall rental income from its continuing operations more than trebled to £29m.
Management is hoping to add to this via its acquisition of Industrial Multi Property Trust, which owns similar properties to Hansteen. The portfolio consists of 51 multi-let properties, offering 500 leasable units with a total floor of around 1.7m sq ft. Around 86 per cent is invested in light industrial property.
Analysts at Numis expect adjusted net assets of 137p a share at 31 December 2017, up from 129p the same time in 2016.
HANSTEEN HOLDINGS (HSTN) | ||||
ORD PRICE: | 129.9p | MARKET VALUE: | £1.07bn | |
TOUCH: | 129.8-129.9p | 12-MONTH HIGH: | 131p | LOW: 104p |
DIVIDEND YIELD: | 4.6% | TRADING PROPERTIES: | £10m | |
DISCOUNT TO NAV: | 2% | NET DEBT: | 32% | |
INVESTMENT PROPERTIES: | £795m |
Half-year to 30 Jun | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
2016 | 116 | 24.8 | 3.4 | 2.2 |
2017 | 133 | 12.6 | 1.7 | 2.3 |
% change | +14 | -49 | -50 | +5 |
Ex-div: | 28 Sep | |||
Payment: | 27 Oct |