- Total dividend of 9.0 cents per share; 1.1% increase year-on-year.
- 10.28 cents diluted adjusted EPRA earnings per share: 1.2% decrease on the previous year.
- €1.59 diluted adjusted EPRA NAV per share; 4.8% decrease on the previous year.
- Acquisition of a portfolio of multi-let industrial properties announced.
Stenprop Limited today announced its annual results for the year ended 31 March 2017. At the end of the reporting period the Company’s portfolio comprised an interest in 54 properties valued at €848.1 million, with 40.3% in the United Kingdom, 41.7% in Germany and 18% in Switzerland, by value. Without the depreciation of Sterling against the Euro, the earnings figure above would have increased by 5.6% and the NAV would have decreased by 1.8% compared with the previous year.
“Apart from the negative impact of the Sterling devaluation, our portfolio continued to perform in line with forecasts. We continue to pursue opportunities to recycle mature assets into new purchases likely to show enhanced growth in earnings, distributions and capital value over time,” said Paul Arenson, CEO of Stenprop.
The company declared a final dividend on 7 June of 4.5 cents per share, resulting in a total dividend per share of 9.0 cents per share for the year ended 31 March 2017. This equates to a historic dividend yield of 7.1% on the share price of €1.26 at 5 June 2017.
On 29 November 2016, Stenprop sold its first Swiss property in Interlaken, Switzerland at valuation for CHF6.8 million.
Arenson commented: “We are currently in the process of marketing the remaining Swiss portfolio and expect to sell this during the current financial year”.
“Contracts have also been signed for the disposal of the regional shopping centre, Nova Eventis, near Leipzig, in which Stenprop owns a 28.42% share. The sale is scheduled to complete on 22 June 2017. This is in line with Stenprop’s strategy to actively monitor its existing portfolio and recycle capital into assets that support our objective of delivering sustainable and growing earnings, distributions and capital value to shareholders.”
Bank debt at year-end was €438.0 million, resulting in an average loan to value ratio of 51.6%, unchanged from 31 March 2016. However, excluding the Swiss portfolio and Nova Eventis which are in the process of being sold, the average loan to value ratio is 49%. Stenprop currently targets an average loan to value ratio of 50%.
The weighted average debt maturity stood at 2.4 years at 31 March 2017 compared with 2.2 years at 31 March 2016. However, excluding the Swiss portfolio and Nova Eventis, the weighted average debt maturity at 31 March 2017 stands at 3.2 years.
“Our all-in contracted weighted average cost of debt declined to 2.53% from 2.80% at 31 March 2016 as result of our Swiss debt swap expiring and the loans being rolled on a flexible basis pending sales”.
“In the absence of any suitable acquisition opportunities at the time we chose to deploy surplus cash into a share repurchase programme. In November and December 2016, we purchased a further 7,669,622 shares for an aggregate purchase price of €9.6 million, which, excluding the dividend, equated to €1.20 per share. At these levels, such purchases were enhancing for earnings and NAV per share,” said Patsy Watson, CFO of Stenprop.
On 7 June 2017 Stenprop announced the acquisition of a portfolio of multi-let industrial properties as well as the management business that has built up and managed the portfolio since 2009, C2 Capital Limited, for a combined consideration that values the two businesses at £130.5 million. The MLI Portfolio is made up of 25 separate multi-let industrial estates (MLI) situated in or near densely populated nodes across the United Kingdom. The acquisition is scheduled to complete on 30 June 2017.
“We are very excited about this transaction. This transaction provides us with a strong strategic foothold, economies of scale and management expertise in the MLI sector. Our intention is to build a much larger MLI portfolio off this base, which we are confident will deliver sustainable higher average annual rental growth going forward. Our intent is to position Stenprop as a leading player in the UK MLI space through the active pursuit of acquisition opportunities over time,” concluded Arenson.