Stenprop, the UK multi-let industrial (MLI) landlord, has reported a 2.8% uplift in the value of its property portfolio.
The company, which is in the process of transitioning its portfolio to be fully focused on the MLI sector, said its portfolio was valued at £532.6m in full year results to 31 March 2020.
This was down from £612.9m in March 2019 due to sales of non-core assets, but up on a like-for-like basis.
The group’s net asset value was flat – up slightly on a diluted IFRS basis to £1.37 (March 2019: £1.36) and down slightly on a diluted EPRA basis to £1.39 (March 2019: £1.41).
MLI properties now represent 58% of the portfolio by value and the group said it aims to be 100% focused on the sector in two years.
Diluted adjusted EPRA earnings per share was 6.88p, covering its total dividend for the year of 6.75p.
The group’s loan to value (LTV) was 40.8% (March 2019: 44.2%) and it has £70m of free cash.
Operational highlights
Stenprop acquired 10 MLI estates and a number of additional units on existing estates during the year for a total purchase price of £38.8m.
It sold three small UK retail properties for £4.6m and the portfolio’s largest property, Bleichenhof located in in central Hamburg, for €160.15m (£136.2m).
On the leasing side, it completed 197 new lettings/renewals in the MLI portfolio at an average of 19% ahead of the previous passing rent.
On a like-for-like basis, the valuation of the total portfolio increased by 2.8% over the prior year. The like-for-like increase on the MLI portfolio valuation was 3.7%.
At 31 May 2020, 82% of the portfolio’s total rent invoiced and due had been received for the aggregate of the quarter commencing 25 March 2020 and the months of April and May 2020.
The company said it was keen to take advantage of investment opportunities at “risk-adjusted pricing”.
Chief executive Paul Arenson said: “While we acknowledge the need for caution, we are keen to start taking advantage of the conditions to acquire additional MLI estates at attractive risk-adjusted pricing.
“We anticipate that many of the trends which have fuelled the demand for this asset class from occupiers and investors over recent years will be accelerated by the current covid-19 crisis.”
STP : Stenprop posts 2.8% rise in portfolio value