Hansteen Holdings (HSTN) runs a buy, work and sell model. In the past year or so, ‘sell’ appears to have been the operative word and investors have reaped the rewards. Hansteen disposed of its German and Dutch business last June for a whopping £1.12bn, in turn paying shareholders £578m via a tender offer in November. Then, in February 2018 – post reporting period – the company agreed to sell its Industrial Multi Property Trust (IMPT) to Warehouse REIT for £116m.
Hansteen only acquired IMPT last April, but bosses highlight the unexpected, and generous, nature of Warehouse’s offer; not to mention the fact that they can now pay a further £145m to shareholders. This proposed return, announced alongside the group’s results, was also enabled by a compulsory purchase order for Saltley Business Park - issued by the Secretary of State for Transport. Hansteen has already received an advance payment of £36.96m, while a mutual valuation process continues.
Operationally, the group’s property valuation rose 8.2 per cent, and now yields 7.5 per cent. UK occupancy reached a record high of 93.6 per cent. The balance sheet was also “simplified” via the settlement of €100m of convertible bonds.
Analysts at Numis have guided for adjusted net asset value (NAV) of 136p a share for the December year-end, against 132p in 2017.
| HANSTEEN HOLDINGS (HSTN) | ||||
| ORD PRICE: | 139.5p | MARKET VALUE: | £576m | |
| TOUCH: | 138.9-139.5p | 12-MONTH HIGH: | 148p | LOW: 117p |
| DIVIDEND YIELD: | 4.4% | TRADING PROPERTIES: | £10m | |
| PREMIUM TO NAV: | 3.3% | NET DEBT: | 40.4% | |
| INVESTMENT PROPERTIES: | £808m | |||
| Year to 31 Dec | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p)* |
| 2013 | 86 | 65 | 9.1 | 4.80 |
| 2014 | 99 | 131 | 17.6 | 5.00 |
| 2015 | 105 | 171 | 21.3 | 5.25 |
| 2016 | 124 | 120 | 14.8 | 5.90 |
| 2017 | 135 | 213 | 28.2 | 6.10 |
| % change | +9 | +78 | +91 | +3 |
| Ex-div: | 5 Apr | |||
| Payment: | 17 May | |||
| *Excludes special dividend of 3p a share paid in 2015 | ||||
