Financial Highlights
Normalised Income Profit increased by 28% to £39.4 million (2012: £30.8 million)
Normalised Total Profit increased by 35% to £46.3 million (2012: £34.3 million)
IFRS profit before tax increased by 41% to £65.3 million (2012: £46.2 million)
Normalised Income Profit per share, increased by 28% to 6.2p (2012: 4.8p)
Diluted EPRA earnings per share increased by 6% to 5.0p (2012: 4.7p)
Full year dividend increased by 7% to 4.8p per share (2012: 4.5p per share)
EPRA NAV per share increased by 9% to 91p (31 December 2012: 83p)
Net debt to property value ratio of 49.3% (31 December 2012: 38.6%)
Two new five year loans totalling €343 million secured against German property announced on 4 March 2014
Operational Highlights
Total portfolio owned or co-owned increased by 53% to £1.5 billion (2012: £1.0 billion)
Annualised rent roll from total portfolio up 59% to £134.9 million (2012: £84.7 million)
46 sales of £159.6 million with a total profit of £10.0 million
£53 million investment in the Ashtenne Industrial Fund and contract to manage the Fund
£91.1 million of properties acquired (excluding the stake in AIF) at an average yield of 10.3% and a vacancy of 21.0%
Like-for-like occupancy improvement of 104,000 sq m or 22.2% of vacancy at the start of the year
Property valuation increase across the total portfolio of 3.2% (£46.9 million)
Launch of the second co-investment fund (HPUTII)
Issue of €100 million convertible bond with 4% coupon and five year maturity
€41.7 million acquisition of an impaired loan on HBI Netherlands portfolio at a 51% discount to face value
- Operational Highlights relate to property, owned and managed, of Hansteen and its associated funds.
James Hambro, Chairman, commented: "We believe that from Hansteen's perspective the property investment market this year is likely to exhibit two strong themes across all the European regions in which we operate. First, recognition by investors that higher yielding regional industrial property should produce superior returns over the next couple of years and second, an appreciation by investors that in order to achieve those returns industrial property requires intensive and specialist management. We have an extensive network of regional offices across our European regions manned by experienced, energetic and incentivised locals with a proven track record of creating value for shareholders.
There are few equivalent platforms to Hansteen's in the high yielding property sector. The combination of a large high yielding portfolio with opportunities to add value and an improving investment market means that we look forward to the remainder of 2014 with confidence."
Ian Watson and Morgan Jones, Joint Chief Executives, added: "The second half of 2013 saw the investment and funding markets change significantly for the better, following five years of decline and poor liquidity. This is particularly true in the UK with growing signs that the investment market in Germany will follow a similar path, in time. At the same time, in each of our regions the occupational market is improving. Having focused on buying properties with vacancies the combination of our successful asset management and the improving markets means that despite showing value growth in 2013 the yield of our portfolio was higher in December 2013 than it was in December 2012. Furthermore, although we have materially improved occupancy levels there is still a significant vacant element with the potential to add both income and value. Accordingly, we are well positioned to benefit from improving market backdrop and expect 2014 to be a very active and successful one for Hansteen."
