Hansteen releases results after busy year – Hansteen has released results for 2017. Highlights are:
- EPRA NAV per share of 130.6p after return of capital at 11.1p premium to 31 December 2016 EPRA NAV of 128.9p
- Adjusted EPS was 6.9p (FY 2016: 6.7p)
- IFRS profit increased by 86.6% to GBP204.3 million (FY 2016: GBP109.5 million)
- Normalised Total Profit of GBP107.6 million (FY 2016: GBP69.4 million)
- Normalised Income Profit of GBP51.9 million (FY 2016: GBP64.5 million)
- IFRS NAV per share of 135.1p (31 December 2016: 124.0p)
- Full year dividend of 6.1p per share (2016: 5.9p per share)
- Net debt to property value ratio of 27.6% (31 December 2016: 40.9%)
Operational Highlights
- German and Dutch portfolio sold for GBP1.12 billion generating a pre-tax profit of GBP49.2 million
- GBP578.1 million returned to shareholders
- Acquisition of Industrial Multi Property Trust PLC (“IMPT”)
- Like-for-like UK occupancy improvement of 358,000 sq ft or 29.6% of the vacant space at the start of the year
- Like-for-like UK rent roll improvement of GBP2.1 million per annum
- Property valuation increase of GBP62.0 million or 8.2%
- GBP68.1 million of sales (excluding German and Dutch portfolio) generating profits of GBP5.7 million
Post Balance Sheet Events
- Contracts exchanged for the sale of IMPT for GBP116 million with completion due on 26 March 2018
- Saltley Compulsory Purchase Order (“CPO”) notice irrevocably served, completed on 13 March 2018
- Proposed return of capital of 35p per share
Melvyn Egglenton, Chairman, commented: “The last 12 months have been an extremely busy and successful period for Hansteen with the three key elements of our business model working well. We have acquired properties in a competitive market at good prices through the corporate acquisition of IMPT, managed our assets effectively with increases in rent, occupancy and value and finally sold a significant part of the portfolio which realised a material amount of capital that has been returned to shareholders. Alongside that we have simplified the Company’s Balance Sheet, settling the EUR100 million of convertible bonds.
Notwithstanding the real challenges surrounding the EU exit process, we have not seen any negative effect on our tenants’ take up of space. E-commerce continues to enhance demand, which combined with limited availability and little new supply is driving rental growth. We are well positioned to continue to benefit from this demand. Our built portfolio has a yield of 7.5% which compares with an all-in cost of borrowing cost of 2.7%. We continue to believe that our diverse portfolio of urban industrial and warehouse properties presents a relatively rare opportunity in today’s property sector to achieve a combination of income and capital growth“.
HSTN : Hansteen releases results after busy year