| Item | 2014 result | 2013 result |
|---|---|---|
| NAV | 102p | 91p |
| Portfolio value | £676m | £555m |
| Profit | £131m | £65.3m |
| Management fees | £6m | £3.2m |
| Rental income | £78.8m | £78.4m |
FINANCE: Hansteen recorded a 12% increase in its NAV despite a falling euro and the payout of a 5% dividend, according to their 2014 results.
NAV per share rose from 91p in the full year to end of 2013 to 102p per share in 2014, with the net asset value of the portfolio rising by £121m to £676m.
According to Ian Watson and Morgan Jones, co-chief executives of Hansteen, this as much the result of the company’s ability to drive up rental income and fees through good asset management as an increase in portfolio valuation.
Profits at the group also rose by 100.9% from £65.3m to a record of more than £131m on the strength of increased value from property sales and an increase in income profit.
Management fees in particular rose strongly through 2014 from £3.2m in 2013 to £6m in 2014.
Rental income also increased, but more modestly, from £78.4m to £78.8m in 2014.
The total 34m sq ft Hansteen portfolio, including co-owned assets, was valued at the end of December 2014 at £1.2bn, up from £1.1bn in 2013.UK values on wholly owned assets increased 7.6% to £8.6m over the full year.
The fall in the euro during 2014 cut £59.1m from the portfolio’s valuation, according to the company.
Vacant space accounted for 14% of the portfolio. Most vacant space was the UK (18.3%) and France, Belgium and the Netherlands (18.1%).
Germany, the chief executives stressed, was still a strong market and not one that was “downbeat and deflationary”. In particular the region had benefitted from a strong car production industry and rising incomes.
This means the company was “pretty bullish” about having the majority of their assets in the region, according to Watson.
Vacancy rates were down to 11.5% across the German holdings with the portfolio increasing in value by €44m or 6% during 2014.
