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Company Name: Hansteen Holdings PLC

Place of Registration: England and Wales

Registered Number: 05605371

Registered Office Address:

1st Floor, Pegasus House,
37-43 Sackville Street
London W1S 3DL

Telephone: +44 (0)207 408 7000
Fax: +44 (0)207 408 7001

VAT number 872 5613 11

Regional offices

Financial review

Hansteen (LSE: HSTN), the investor in UK and continental European industrial property, announces its full year results for the year ended 31 December 2015.

Financial Highlights
  • IFRS profit before tax increased by 30.6% to £171.4 million (FY 2014: £131.2 million)
  • Normalised Income Profit of £47.2 million (FY 2014: £48.2 million)
  • Normalised Total Profit of £63.2 million (FY 2014: £65.3 million)
  • Full year dividend increased by 5% to 5.25p per share (2014: 5.0p per share)
  • EPRA NAV per share increased by 9% to 111p (31 December 2014: 102p)
  • Net debt to property value ratio of 41.2% (31 December 2014: 41.1%)
Operational Highlights
  • Acquisition of units in the Ashtenne Industrial Fund Unit Trust (“AIF”) increasing our interest from 36.7% to 81.8% during the year
  • Sale of HPUT II for £192.1 million at a profit to Hansteen of £4.7 million and £31.7 million over total acquisition cost
  • £86.3 million of other sales at a yield of 6.9% with a total profit of £8.7 million (over 31 December 2014 valuation) and £21.2 million over total acquisition cost
  • £68.0 million of properties acquired at an average yield of 7.8%
  • Property valuation increase across the total portfolio of 11.1%
  • Like-for-like occupancy improvement of 148,404 sq m
  • Like-for-like rent roll improvement of £2.0 million per annum
  • Placing of 35.7 million shares to raise £39.4 million

* Diluted EPRA earnings includes £13.6 million charge relating to the LTIP. See note 3 of the financial statements.

- See note 3 of the financial statements for a reconciliation of Normalised Income Profit and Normalised Total Profit to the IFRS measure of profit before tax. 

- Operational Highlights relate to property, owned and managed, of Hansteen and its associated funds. 

Once again it has been a record year with the business making a total return to shareholders of 17.6p per share or 17.3%.  While we expect that the UK and European economies over the next few years will be subject to low interest rates and low growth, this environment should play to Hansteen’s strengths. We pay a high dividend, well covered by earnings and we have the capacity to continue to grow these earnings through a combination of improving occupancy, rental growth and income enhancing trading; selling lower yielding properties and buying higher yielding properties.

Our reading of the current cycle continues to be that of a long, grinding, corrugated stretch of low interest rates and low returns which should play to the strengths of our business.  Our portfolio is extremely diverse with over 5,000 tenants in five countries.  Despite the tough environment, the fundamentals of occupational supply and demand continue to be positive.  In all three of our regions, our properties are valued at less than replacement cost; hence there is little or no new supply of multi-let light industrial property coming to the market.  Recent months have marked a tipping point on the demand side with increasing numbers of commentators taking the view that “industrial is the new retail”.  The transfer of goods from shops to sheds is a trend that is not going to be reversed in the near future. Aside from this, light industrial property will continue to provide flexible, affordable, commercial space for the new occupiers of 2016 and beyond. Occupational strength will continue to underpin investment values and growth prospects. Equally importantly, the high and resilient income characteristics of well managed diverse pools of light industrial property ensure that this business continues to generate and distribute high returns to shareholders in an era where such returns are increasingly difficult to find.  Our feeling is that these fundamentals will further strengthen values and liquidity this year, in all three of our regions.  

 

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