FINANCE: Morgan Jones’s and Ian Watson’s Hansteen Holdings has revealed a 5% EPRA NAV rise to 96p a share in its half-year results.
The UK and European industrial investor’s owned or co-owned portfolio rose in value by slightly more – some 7.2% – to £1.6bn, with a 4.6% like-for-like valuation hike in the period to 30 June.
The group’s annualised rent roll rose by 7% to £144.3m and like-for-like occupancy has improved by 2.5% since the start of the year.
Profit rose on all measures, with normalised income profit increasing by 32.8% to £25.1m and normalised total profit surging by 59.1% to £35m.
IFRS pretax profit came in at £66.7m – more than four times the £14.9m recorded at the same time last year.
Diluted EPRA EPS were 3.2p, and the firm has announced a 5.3% hike to its November interim dividend to 2p a share.
The company recapped a number of operational highlights from the period, during which it completed 30 sales with a total value of £90.4m generating a combined profit of £8.3m.
It bought £142.7m of properties acquired at an average yield of 11.3% and a vacancy of 18.7%, as well as buying a further 9.2% stake in the Ashtenne Industrial Fund for £26m, increasing ownership to 36.7%.
It also completed a share placing to raise £46.3m and undertook a refinancing of its German debt at an all-in average cost of 3.8% pa.
Chairman James Hambro said: “Our strategy of substantially growing the portfolio from the low point in the cycle is beginning to realise its promise.
“Investment market conditions have undoubtedly become more competitive as investors begin to recognise that regional industrial property is likely to produce superior returns in the medium term.
“Despite the increased competition, our creative approach to acquiring property is still presenting openings to purchase well priced assets that will provide potential for income and growth.
“Occupational markets are continuing to improve and have led to further increases in our rent roll and improved occupation.
“In every region we are seeing improving occupational and investment markets albeit to differing extents and from different starting points.
“Recently, some commentators have questioned the sustainability of current investment yields in various property sectors. Whilst it may be true that in some areas of property, until rental growth is established, scope for further yield compression may be limited, the board does not believe this to be the case in relation to Hansteen’s portfolio of regional light industrial properties.”
bridget.o’connell@estatesgazette.com
