21st Aug 2019 07:43
(Alliance News) - Hansteen Holdings PLC on Wednesday reported an increase in the value of its portfolio and double-digit growth in rent prices, but profit slipped on lower revenue and gains on investments.
The industrial property investor reported an increase in net asset value per share to 104.4 pence as at June 30 compared to 102.7p recorded the same date a year ago.
Pretax profit declined, however, to GBP19.1 million from GBP29.3 million year-on-year, as revenue slipped to GBP24.0 million from GBP26.2 million. Hansteen also recorded lower gains on investment properties of GBP10.0 million versus GBP30.5 million the year prior.
Despite the lower profit, the company upped its interim payout by 11% to 2.0p per share.
More positively, Hansteen said it secured 373 new lettings in the first half and renewals at rent levels were up 4.7% year-on-year.
The average rent achieved on these new lettings and renewals increased by 15% to GBP4.62 peer square foot compared with the average contracted rent of GBP4.03 per let square feet as at the end of December 2018.
The like-for-like value of the total portfolio, after disposals, has increased by 1.3% since the end of December 2018. The UK portfolio increased by 1.6% but the value of the Belgium and France portfolio decreased by 4.3%.
"Our yields are high, our occupancy is strong, and our rents are growing. We still think that the market undervalues the strength and reliability of the income our properties produce," said Joint Chief Executives Morgan Jones and Ian Watson.
"Because of the continuing march in e-commerce and the consequent growth of occupational demand, we believe that the outperformance relative to the other property sectors will continue," the two added.
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