FULL YEAR RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016
20 Mar 2017
HANSTEEN TOTAL ANNUAL RETURN OF 20.8%
Hansteen (LSE: HSTN), the investor in UK and continental European industrial property, announces its full year results for the year ended 31 December 2016.
- Total Annual Return to shareholders of 23.1p or 20.8% (EPRA NAV growth of 17.7p plus dividends paid of 5.35p)
- IFRS profit before tax of £119.9 million (FY 2015: £171.4 million)
- Normalised Income Profit increased by 29.4% to £61.1 million (FY 2015: £47.2 million)
- Normalised Total Profit increased by 4.4% to £66.0 million (FY 2015: £63.2 million)1
- IFRS NAV per share increased by 17.9% to 124.0p (31 December 2015: 105.2p)
- EPRA NAV per share increased by 15.9% to 128.9p (31 December 2015: 111.2p)1
- Full year dividend increased by 12.4% to 5.9p per share (2015: 5.25p per share)
- Net debt to property value ratio of 40.9% (31 December 2015: 41.2%)1
- Acquisition of remaining 18.2% units in the Ashtenne Industrial Fund Unit Trust for £49.7 million increasing ownership to 100%
- UK portfolio refinanced with a new £330.0 million five-year loan facility at an all-in cost of 2.3% per annum
- Netherlands portfolio refinanced with a new €145.0 million five-year loan facility at an all-in cost of 2.6% per annum
- Like-for-like occupancy improvement of 131,000 sq m or 28.2% of the vacancy at the start of the year
- Like-for-like rent roll improvement of £2.1 million per annum
- Like-for-like property valuation increase across the total portfolio of 2.8%
- £34.2 million of sales generating profits of £4.7 million
Post Balance Sheet Events
- Offer for the entire issued ordinary share capital of Industrial Multi Property Trust PLC (“IMPT”)
- Contracts exchanged on terms for the sale of Hansteen’s German and Dutch portfolios for €1.28 billion
READ THE FULL REPORT HERE
Melvyn Egglenton, Chairman, commented: “I am pleased to report an exceptional year for Hansteen with our portfolio and our team once again delivering record results. While acquisition opportunities have been limited the team has focused on growing the portfolio occupancy and rent roll resulting in the highest ever number of new lettings and lease renewals, record like-for-like rent growth and the highest ever portfolio occupancy rate.
The significant spread between our portfolio yield and borrowing costs offers potential for further capital growth, particularly when the current yield is compared to the yield lows of previous cycles. This compares favourably to the other property sectors where yields have reached historic lows during 2015 or earlier. The UK portfolio also offers earnings upside through the letting of the remaining vacant area and emerging rental growth which will allow the business to continue to generate strong income returns in the future. Across the UK, we are experiencing pockets of rental growth and shorter incentives being offered to tenants as demand intensifies, particularly at estates where voids are zero or close to zero.
We also have 447 acres of undeveloped land in the UK which does not yet produce income but will in time produce further value. We will continue to focus on realised returns allowing us to pay a well-covered and growing dividend to our shareholders”.
For more information:
Morgan Jones / Ian Watson Jeremy Carey
Hansteen Holdings PLC Tavistock
Tel: 020 7408 7000 Tel: 020 7920 3150
 Important Explanatory Notes about Alternative Performance Measures used in this Report:
EPRA and Adjusted metrics: The condensed financial statements are prepared under IFRS. The Board monitors a number of alternative performance measures when assessing the underlying performance of the business. These include Normalised Income Profit (“NIP”), Normalised Total Profit (“NTP”) and those defined by EPRA. NIP and NTP are defined in the Joint Chief Executives’ Statement and note 4 of the condensed financial statements contains the reconciliation of these to IFRS profit before tax. Note 9 of the condensed financial statements has more information about the EPRA adjustments and the reconciliation of these to the IFRS equivalents. A calculation of net debt and the net debt to value ratio is shown in the Financial Review.