INTERIM RESULTS to 30 June 2010 HANSTEEN HOLDINGS PLC

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Gilbert Fisher
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1 INTERIM RESULTS to 30 June 2010 HANSTEEN HOLDINGS PLC

2 Introduction FTSE 250, internally managed, management / shareholders truly aligned Portfolio 1.9 million sqm; 1,800 tenants, five countries Growing dividend yield Opportunistic acquisitions 2

3 Content Our Strategy Highlights H Property Portfolio Financial Analysis 3

4 Strategy: Overview Market Outlook Tough occupational market Short term capital growth limited Hansteen Strategy Potential to create high income REIT Assemble a portfolio to profit from recovery Opportunistic/ profitable acquisitions (distressed vendors) 4

5 Strategy: High Income REIT Rental yield 8.06% Interest cost (3.11%) H1 recurring pre-tax profit 9.7 million Full year enhancement Top earning REIT Growing dividend : 3.2p per share (5% yield) - First interim 2010:1.4p per share 5

6 Strategy: Capital Growth Potential Rental movement: 25% vacancy with potential of additional 19 million per annum Yield shift: 8.06% including vacancies 10.6% reversion 6

7 Strategy: Opportunistic / Profitable Acquisitions HBI Portfolio (UniCredit Bank) - Acquisition of German portfolio for 330 million Kilmartin (HBOS) - Acquisition of 61 properties for 84 million Kilmartin Joint Venture (HBOS) - Acquisition of 12 properties for 13.5 million 7

8 Highlights H HBI Acquisition in Germany 34 industrial properties across Germany 856,000 sqm on 205 hectares Effective purchase price 330 million 260 million stapled debt on beneficial terms Annualised rent roll of 30.3 million per annum, equating to an initial yield of 9.2% Initial vacancy of 24.4%, with an ERV of around 7.7 million Capital value of built space 384 per sqm compared to an insurance rebuild cost of 798 per sqm Originally acquired for approximately 439 million and at peak, valued at 454 million 8

9 Highlights H HBI Acquisition Update as at 30 June 2010 Annualised rent roll increased to 30.7 million Vacancy reduced to 21% (0.18 million sqm) Valuation increased to million ( 6.4 million uplift) 9

10 Highlights H HBI Portfolio No & Property 1 Bremen 2 Braunschweig Steinrieden 3 Leipzigg 4 Gottmadingen 5 Berlin Holzhauser 6 Braunschweig Querumer 7 Delta Forum 8 Neuss 9 Cologne 10 Dietzenbach Philipp-Reis Strasse 11 Glinde 12 Dormagen 13 Berlin Porschestrasse 14 Düsseldorf 15 Gladbeck 16 Troisdorf 17 Dietzenbach Waldstrasse 18 Soltau 19 Maisach 20 Pleidelsheim 21 Berlin Tegel 22 Viersen 23 Regensburg 24 Neukirchen 25 Hannover 26 Rodenbach 27 Reinbek Dieselstrasse 28 Berlin Miraustrasse 29 Bad Schönborn 30 Paderborn 31 Reinbek Borsigstrasse 32 Billbrook 33 Ladbergen 34 Geldern 10

11 Highlights H HBI 15 Gladbeck Ellinghorst 13 Berlin Porschestrasse 34 Geldern Walbecker Str 10 Dietzenbach Philipp-Reiss Str 09 Porz Hansapark Köln 14 Düsseldorf Hellerhof Park 08 Neuss Business Triangel 04 Gottmadingen 17 Dietzenbach11 Waldstr

12 Highlights H Kilmartin Purchase price 73.8 million (excluding 9.9 million of multi-let industrials acquired by the H.P.U.T) 58 separate properties 100,000 sqm Contracted rent 5.4 million 7.3% yield 50,000 sqm vacant (52%) Significant capital value upside 12

13 Highlights H KILMARTIN Property Portfolio Cambridge, Swavesey, CB24 4UQ Hyde Point, Hyde, SK14 4NL Maidenhead, Moorbridge Road, SL6 8BW Slough, Farnham Road, SL2 1LF 13

14 Highlights H Kilmartin Current Update Eleven properties sold for a total of million Exchanged contracts on three further properties for a total of 9.75 million Five properties in legal due diligence for 8.3 million All properties sold at prices above acquisition cost 14 properties sold to date combined yield 3.25% Four properties sold completely or substantially vacant; one undeveloped land plot Yield on cost of remainder: 8.5% 14

15 Highlights H Kilmartin Joint Ventures Acquisition Twelve properties in Scotland for a total acquisition cost 13.5 million Five consented residential sites totalling 20 acres Seventeen residential apartments in two buildings 54% of value in five commercial properties Commercial rent roll 839, % initial yield Current vacancy of commercial properties 28% Incentivised asset management agreement to manage three large industrial properties 15

16 Property Portfolio: Summary as at 30 June 2010 No. Built Area Vacant Area Properties sqm ( %) Euros m Sterling m Euros m Sterling m 53 66, Germany 86 1,305, Netherlands , Belgium 13 49, France 4 79, Total Wholly Owned 189 1,869, HPUT 7 26, UK Passing Rent Value Yield (%) (Exchange rate: 1 = ) 16

17 Property Portfolio: Country Exposure by Value UK 10% Germany 63% Netherlands 20% Belgium 5% France 2% 17

18 Property Portfolio: Valuation Movements m % UK % Germany % Netherlands % Belgium % France % Net Movement % 18

19 Property Portfolio: Occupancy Vacancy Movement in H1 UK (incl. HPUT) 57% +2% Germany 22% +0.1% Netherlands 29% -13% Belgium 23% -2% France 22% -22% Group 25% -3.3% 19

20 Property Portfolio: Rent Passing Rent 58.2 m pa 71.1 m pa 8.06% Contracted Rent 59.6 m pa 72.8 m pa 8.25% ERV 77 m pa 94 m pa 10.6% Number of tenants: 1,800 Average rent 32,000 per annum Average to expiry: 3.3 years No tenant > 3% rent roll 20

21 Property Portfolio: Rent Average Rents: UK per sq ft per annum Germany 48 per sqm per annum Netherlands 47 per sqm per annum Belgium 84 per sqm per annum France 29 per sqm per annum Group 3.86 per sq ft per annum 21

22 Financial Analysis: Profit & Loss Account for the period ended 30 June 2010 Turnover Cost Admin Interest Normalised profit Revaluation Derivatives Pre-tax profit/ (Loss) 30 June 2010 m 23.1 (4.6) 18.5 (4.7) (4.2) (4.7) June 09 m 19.8 (3.0) 16.8 (3.4) (4.7) 8.7 (16.4) (2.0) (9.7) 22

23 Financial Analysis: Balance Sheet as at 30 June 2010 Goodwill Properties Investments Debtors/ Creditors Net debt Derivative Instruments NAV (IFRS) Adjustments NAV (EPRA) IFRS NAV per share EPRA NAV per share 30 June 2010 m (407) 31 Dec 09 m (7) (55) (5) p 80p (5) p 84p 23

24 Financial Analysis: Cash and Borrowings Net debt: 407 million LTV: 56% Investment capacity at 30 June 2010 Holdings: 100 million HPUT: 160 million Plus potential partners Cash availability 24

25 Financial Analysis: Borrowings Debt Drawn at June 10 Committed Facility Margin HBOS 123 m 150 m to July % FGH 123 m 123 m to June % Various/Belgium 19.5 m 19.5 m (mainly long term mortgages) Various 260 m 260 m to April % Cap Swap Cap Swap Cap Swap Cap Cap 25 m 50 m 50 m 50 m 50 m 208 m 26 m 26 m UniCredit Hedging HBOS FGH UniCredit 5% 2.60% 4.50% 4.46% 4.95% 2.20% 4.00% 9.00% Feb 2011 Feb 2014 Apr 2011 Jun 2013 Jun 2013 Feb 2015 Feb 2015 Feb

26 Financial Analysis: Currency Net assets approximately 70% Euro denominated NAV hedging: Euro put / Sterling call 200 million, 3 years at 1.42 to 1.00 Currently 77% of NAV in sterling or hedged 26

27 Outlook Circa 100 million fire power on balance sheet assuming prudent gearing Circa 154 million fire power in HPUT assuming prudent gearing Distressed opportunities emerging Existing portfolio defensive, high yielding with real value add opportunities Growing dividend 27

Hansteen. Half Year Results to 30 June Castrop-Rauxel, Germany

Hansteen. Half Year Results to 30 June Castrop-Rauxel, Germany Hansteen Half Year Results to 30 June 2016 Castrop-Rauxel, Germany Introduction Hansteen - Pan European Real Estate Investment Trust (REIT) Pan European REIT Five countries Regional teams in 15 offices