Hansteen Holdings plc Hikes Dividend On “Record” Year

Hansteen Holdings plc (LON: HSTN) made a number of acquisitions in 2013 which paid off in profit and value growth.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The shares of Hansteen Holdings (LSE: HSTN), the real-estate investment trust with a £1.5bn property portfolio, stayed flat at 111p in early trade after the publication of its 2013 final results, which were broadly in line with what analysts expected.

The firm reported sales of £160m with a total profit of £10m, which will release capital for reinvestment.

A number of significant property acquisitions were made in 2013, worth £91m, along a contrarian strategy of buying unpopular estates for low value.

Most recently the firm bought 17 industrial estates across England and Wales for £42m. These properties will be brought into Hansteen’s second UK industrial property fund, established in May last year, which has a capacity to invest up to £200m.

So far the fund, of which Hansteen has a 33% stake, has invested £76m making a return of 15%.

The joint chief executives, Ian Watson and Morgan Jones, commented:

“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.”

“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.”

Earnings per share increased 28% to 6.2p while the full year dividend increased 7% to 4.8p per share.

The shares currently trade at 18 times forecast earnings for 2014 and offer a projected income of 4.4%.

Of course, the decision to ‘buy’ remains up to you.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

> Mark does not own shares in Hansteen Holdings. The Motley Fool has recommended shares in Hansteen Holdings.

More on Company Comment

Hand of person putting wood cube block with word VALUE on wooden table
Company Comment

Value has been building behind the Diageo share price

Despite the business growing, the Diageo share price first reached its current level just over 19 months ago and hasn't…

Read more »

Older couple walking in park
Investing Articles

5 stocks to buy for high and rising dividend income

I can see a host of shares to buy on the FTSE 100 offering me exceptional levels of income. Here…

Read more »

Young mixed-race woman looking out of the window with a look of consternation on her face
Investing Articles

I don’t care if FTSE 100 shares fall further, I’m buying them today

I'm happy to go shopping for FTSE 100 shares today, even though I accept that they could have further to…

Read more »

Happy young female stock-picker in a cafe
Investing Articles

Rolls-Royce shares are down 18% in a month and I’m finally going to buy them

Investors who bought Rolls-Royce shares have been repeatedly disappointed, but I'm willing to take a chance on them before they…

Read more »

Storytelling image of a multiethnic senior couple in love - Elderly married couple dating outdoors, love emotions and feelings
Investing Articles

How I’d invest £10k in a Stocks and Shares ISA today

Now looks like a good time to buy cheap FTSE 100 shares inside a Stocks and Shares ISA. These are…

Read more »

Black father holding daughter in a field of cows
Investing Articles

Today’s financial crisis is the perfect moment to buy cheap shares

I'm building a portfolio of FTSE 100 stocks by purchasing cheap shares whenever I see an opportunity. There's a good…

Read more »

Long-term vs short-term investing concept on a staircase
Investing Articles

I’d buy Tesco shares in October to bag their 5.4% yield 

Tesco shares have fallen lately but I think this makes them attractively valued for a dividend stock I would aim…

Read more »

Young mixed-race woman looking out of the window with a look of consternation on her face
Investing Articles

I would do anything to hold Diageo in my portfolio (but I won’t do that)

Diageo is one of my favourite stocks on the entire FTSE 100 and I'd love to hold it, but one…

Read more »