27th Aug 2014 08:44
LONDON (Alliance News) - Property investment group Hansteen Holdings PLC Wednesday reported a big increase in interim profit, boosted in part by valuation gains.
The company, which invests in UK and continental European industrial property, posted pretax profit of GBP66.7 million in the six months to June 30 from GBP14.9 million in the same period a year earlier, after posting a GBP28.8 million valuation gain on investment properties compared with a GBP2.4 million loss a year earlier.
Revenue rose to GBP43.7 million from GBP41.9 million.
In turn, Hansteen said its EPRA net asset value per share rose to 96 pence from 91 pence in December. EPRA is the European Public Real Estate Association, the industry body for European REITs.
The company said GBP142.7 million worth of acquisitions were completed during the period, the largest of which was at the end of June when Hansteen purchased 41 assets in the core Ranstad area of the Netherlands.
In addition, GBP90.4 million of sales were completed at GBP8.3 million above book value and at an average yield of 6.5%.
At the period-end, the company said its portfolio was valued at GBP1.65 billion, with a rent roll of GBP144.3 million a year and a vacancy level of 16.7%.
Financially, Hansteen said it completed the refinancing of both its HBOS PLC and UniCredit Group facilities which were due to expire in October 2014 and February 2015 respectively. Additionally, a five-year, EUR235 million facility has been provided by a consortium of lenders led by Landesbank Hessen-Thüringen Girozentrale (Helaba).
"In every region we are seeing improving occupational and investment markets albeit to differing extents and from different starting points," Chairman James Hambro said in a statement.
"Recently, some commentators have questioned the sustainability of current investment yields in various property sectors. Whilst it may be true that in some areas of property, until rental growth is established, scope for further yield compression may be limited, the board does not believe this to be the case in relation to Hansteen's portfolio of regional light industrial properties," he added.
On the back of its performance the company increased its interim dividend to 2.0 pence from 1.9 pence a year earlier.
Hansteen shares were quoted up 0.4% at 101.35 pence Wednesday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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