Hansteen Holdings chief executive Ian Watson said that the industrial REIT made good progress in 2011, but there is “room for improvement”.
The comments came as the group posted a slight dip in net asset value from 84p to 82p in its full-year results for the 12 months ended 31 December.
It also revealed a fall in pretax profit, which tumbled from £33.2m in 2010 to £8.9m after £19.3m was deducted from the value of its portfolio in Belgium and the Netherlands.
Operationally, the company had a strong year, reducing vacancies and increasing rents. In December it spent £150m buying 88 assets from Merseyside-based commercial property specialist Spencer Group.
Its rent roll over the period rose by 19.6% to £79.3m, including the Hansteen Property Unit Trust, while the vacancy level in its German portfolio fell from 20% to 12%.
Watson said: “We are very pleased with the progress of the business however, there is room for improvement, especially in the value of the property, because it is such a pervasive thing.”
The group is keen to continue on the acquisitions trail after it raised £150m of equity in a rights issue in April last year, which gives it firepower of up to £300m.
During the period, Hansteen bought £176m of properties, including the Spencer deal, and offloaded £33m of assets from its portfolio, which spans the UK, Germany, Belgium, France and the Netherlands.
The group has increased its annual dividend payable by 14% to 4p.
bridget.o’connell@estatesgazette.com
