Hansteen (HSTN) continued to exploit the lack of new-build industrial multi-let property during the first-half, producing a shareholder return of 5.4 per cent including dividend payments. The regional commercial landlord agreed 373 leases and rent renewals at 4.7 per cent ahead of December 2018 estimated rental values.
After some hefty asset sales to institutional investors, including Blackstone, over the past two years, management focused on realising returns from its remaining properties in continental Europe. Co-chief executive Morgan Jones said this period of heavy asset sales had been prompted by high asset values and the appreciation of the euro against sterling. “All that aligned when Blackstone were endeavouring to buy anything that moved,” said Mr Jones. The reduction in the size of the portfolio was responsible for the decline in overall rental income.
Competition for UK assets remains high – like peers, Hansteen reported a lack of market liquidity against an uncertain macroeconomic backdrop. Just £3.4m in assets were bought, although a further £6.2m have been purchased since the period-end.
Analysts at house broker Peel Hunt forecast adjusted NAV of 107p at the December 2019 year-end, up from 103p in the prior year.
| HANSTEEN HOLDINGS (HSTN) | ||||
| ORD PRICE: | 89.5p | MARKET VALUE: | £382m | |
| TOUCH: | 89.5-91.5p | 12-MONTH HIGH: | 110p | LOW: 85p |
| DIVIDEND YIELD: | 6.5% | TRADING PROPERTIES: | £10m | |
| DISCOUNT TO NAV: | 14% | NET DEBT: | 47% | |
| INVESTMENT PROPERTIES: | £638m | |||
| Half-year to 30 Jun | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2018 | 103 | 29.3 | 7.1 | 2.4 |
| 2019 | 104 | 19.1 | 4.5 | 2.0 |
| % change | +1 | -35 | -37 | -17 |
| Ex-div: | 26 Sep | |||
| Payment: | 25 Oct |
