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Hansteen Holdings plc

Hansteen raises interim dividend as portfolio value rises

The industrial property group reported that its NAV had increased to 104.3p per share from 103.3p at the end of 2018

Hansteen Holdings plc - Hansteen ups interim dividend as portfolio value rises
Hansteen is part of the 'big-box' revolution that has been driven by e-commerce

Hansteen Holdings plc (LON:HSTN) has increased its interim dividend after the value of its property portfolio rose in the six months to 30 June.

In its half-year results, the industrial property group reported that its net asset value (NAV) had increased to 104.3p per share from 103.3p at the end of 2018, while the value of its properties had risen 1.3% to £8.5mln.

However, pre-tax profits fell to £19.1mln from £29.2mln, with revenues in the period also slipping - to £26.5mln from £28.5mln.

Despite this, Hansteen raised its interim dividend by 11% to 2p per share, adding that it had also secured 373 new leases and renewals at an average rent of £4.62 per square foot, up from £4.03 per sq ft at the end of 2018.

Looking ahead, the firm said growth in e-commerce had boosted occupation demand for its properties as well as the rise of big-box logistics units, which increase the desire for industrial warehouses.

Morgan Jones and Ian Watson, Hansteen’s joint chief executives, said the market still undervalued the “strength and reliability of the income our properties produce”, adding that with the growth in e-commerce and occupational demand, the group’s portfolio was expected to continue its “outperformance relative to the other property sectors”.

In a note, analysts at Peel Hunt said the 15% discount of the share price to the company’s NAV made it “the best value stock exposed to the UK industrial/logistics market” and retained their ‘add’ rating and 110p price target.

In early trading on Wednesday, Hansteen’s shares were flat at 91p.

Quick facts: Hansteen Holdings plc

Price: £0.95

Market: AIM
Market Cap: £406.36 m
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