Financial Highlights
Normalised Income Profit increased by 32.8% to £25.1 million (H1 2013: £18.9 million)
Normalised Total Profit increased by 59.1% to £35.0 million (H1 2013: £22.0 million)
IFRS pre-tax profit of £66.7 million (H1 2013: £14.9 million)
Normalised Income Profit per share increased by 31.0% to 3.8p (H1 2013: 2.9p)
Diluted EPRA EPS of 3.2p (H1 2013: 2.2p)
EPRA NAV per share 96p (31 December 2013: 91p)
November interim dividend increased by 5.3% to 2.0p per share (November 2013: 1.9p per share)
Net debt to property value ratio 45.9% (31 December 2013: 49.3%)
Operational Highlights
30 sales from the total portfolio with a total value of £90.4 million and a combined profit of £8.3 million
£142.7 million of properties acquired in the year to date at an average yield of 11.3% and a vacancy of 18.7%
Acquisition of a further 9.2% stake in the Ashtenne Industrial Fund ('AIF') for £26.0 million increasing ownership to 36.7%
Placing of 44,834,877 shares to raise £46.3 million
Completion of the German debt refinancing with banks new to Hansteen at an all in average cost of 3.8% per annum
Total value of portfolio owned or co-owned increased by 7.2% to £1.6 billion (31 December 2013: £1.5 billion)
Like-for-like property valuation increase across the total portfolio of 4.6% or £73.5 million
Annualised rent roll from total portfolio up by 7.0% to £144.3 million (31 December 2013: £134.9 million)
Like-for-like occupancy improvement of 17,000 sq m or 2.5% of vacancy at the start of the year
James Hambro, Chairman, commented:
"Our strategy of substantially growing the portfolio from the low point in the cycle is beginning to realise its promise. Investment market conditions have undoubtedly become more competitive as investors begin to recognise that regional industrial property is likely to produce superior returns in the medium term. Despite the increased competition, our creative approach to acquiring property is still presenting openings to purchase well priced assets that will provide potential for income and growth. Occupational markets are continuing to improve and have led to further increases in our rent roll and improved occupation.
"In every region we are seeing improving occupational and investment markets albeit to differing extents and from different starting points. 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."
