Hansteen. Full Year Results to 31 December Tilburg, Netherlands

Transcription

1 Hansteen Full Year Results to 31 December 2016 Tilburg, Netherlands

2 Contents Introduction Hansteen 2016 results Sale announcement Sale of German and Dutch Portfolio 2016 Annual Results 2016 Property Performance Outlook 2

3 Introduction Hansteen - Pan European Real Estate Investment Trust (REIT) Pan European REIT Five countries Regional teams in 15 offices High yielding industrial property Yield of 7.6% Reversionary yield 9.6% Property portfolio of 1.74 billion Rent roll of million pa from 40.8 million sq ft 5,262 tenants High and realised returns Over 10 year successful track record 3

4 2016 Full Year Results Summary Normalised Income Profit ( NIP ) up 29.4% to 61.1 million (2015: 47.2 million) Normalised Total Profit ( NTP ) up 4.4% to 66.0 million (2015: 63.2 million) Full year dividend up 12% to 5.9p EPRA NAV per share increased by 15.9% to 128.9p (31 December 2015: 111.2p) Total return to shareholders of 23.1p or 20.8% (EPRA NAV plus 5.35p dividends paid) Valuation increases in all regions AIF ownership increased to 100% through acquisition of the remaining units Refinanced UK and Netherlands debt Radway Green, UK 4

5 SALE OF GERMAN AND DUTCH PORTFOLIO North Tyne Industrial Estate, Tyne and Wear 5

6 Sale of German and Dutch Portfolio Background Considerations The sale of our entire property portfolio in Germany and Netherlands for 1.28bn Currency Risk Euro rate currently high relative to Sterling Low Vacancy level German vacancy 2010: 20% 2016: 8.9% Netherlands vacancy 2010: 27% 2016: 11.4% Growing Investment interest Active market Urban logistics Amersfoort, Netherlands 6

7 Sale of German and Dutch Portfolio The Transaction Process Discreet marketing to potential buyers Blackstone selected Sale terms Corporate subsidiaries in Germany / Property assets in The Netherlands Completion June 2017 subject to shareholders approval Management platform in Netherlands and Germany transferred to M7 Sales proceeds: 1.28 billion Amersfoort, Netherlands 7

8 Sale of German & Dutch Portfolio Transaction Benefits Beneficial terms Sale price reflects low yield, (7%) Crystallise value at high occupancy level and strong euro NAV Enhancing Enhancing IFRS NAV by circa (approximately 5%) Projected EPRA NAV expected to show small enhancement In sterling terms, value increase from December 2015 approximately 30% Amersfoort, Netherlands 8

9 Sale of German and Dutch Portfolio Post transaction The sale effectively removes 1 billion of property from the business and 400 million of debt. Increased holding of cash Remaining investments in the UK 677 million, Belgium and France 35 million Intention to return a substantial proportion of net cash proceeds to shareholders Income reduced with smaller portfolio, December rent: 53 million per annum Overhead reduction: 6 million - 8 million Interest saving: 13 million - 15 million Amersfoort, Netherlands 9

10 2016 Full Year Results Profit and loss account million 31 December December 2015 Rent Cost of sales (14.7) (12.5) Gross Profit Management fees Share of Associates Income Administration (20.7) (18.9) Interest (24.5) (18.8) Normalised Income Profit Profit on sales Other Normalised Total Profit Net valuation gains IFRS profit before tax NIP per share 8.3 p 6.8 p NTP per share 8.9 p 9.1 p Diluted EPS (Basic) 13.8 p 19.4 p Dividends 5.9 p 5.25 p 10

11 2016 Full Year Results Balance Sheet million 31 December December 2015 Investment Property 1,728 1,061 Trading Property ,738 1,072 Associates share of NAV ,738 1,333 Other Assets/Debtors Cash ,432 Debt (817) (538) Other liabilities / creditors (115) (88) (626) IFRS NAV 924 (124p) 806 (105p) Convertible bond adjustment Deferred tax and other adjustments EPRA NAV 1,083 (129p) 955 (111p) 11

12 2016 Full Year Results Underlying performance in p (5p) 129p 7p 8p 111p Dec 2015 EPRA NAV NTP net of tax Property revaluation FX net of hedging and other movements Dividend Dec 2016 EPRA NAV 12

13 Property Performance Portfolio summary at 31 December 2016 No. of props Built Area sqm Vacant Area Passing Rent Value Euros m Sterling m Euros m Sterling m Yield UK 286 1,459, % % UK Land % % UK Total 286 1,459, % % Germany 100 1,560, % % Netherlands , % % Belgium and France 9 86, % % Total Wholly owned 466 3,793, % , , % Exchange rates: Dec 2016 = Dec 2015 =

14 Property Performance Statistics at 31 December 2016 Rent p.a. Yield Passing rent m 7.6% Contracted rent m 8.0% ERV m 9.6% Number of tenants: 5,262 Average rent: 24,974 pa No tenant > 1.7 % rent roll Average rent: Like-for-like valuation increase: 45.8 million or 2.8% Like-for-Like occupancy: increased by 131,000 sq m (28% of opening vacancy) Like-for-Like rent: increased by 2.1 million UK Europe 37 per sq m ( 3.40 per sq ft) 45 per sq m ( 4.20 per sq ft) 39 per sq m ( 3.60 per sq ft) 14

15 Property Performance German portfolio Year Properties Tenants Built area Vacant area Passing rent ( m) Dec ,945 1,560, % % Dec ,007 1,594, % % Value ( m) Yield 44% of Hansteen s property investments Like-for-like valuation increased by 23.5 million or 2.7% Like-for-like occupancy increased by 31,800 sq m Like-for-like rent increased by 0.7 million 3 sales in the year generating 4.8 million profit Halle, Germany 15

16 Property Performance Benelux and France portfolio Year Properties Tenants Built area Vacant area Passing rent ( m) Dec , % % Dec , % % Value ( m) Yield 17% of Hansteen s attributable property investments Like-for-like valuation increased by 11.2 million or 3.3% Like-for-like rent increase of 1.1 million Like-for-like occupancy up by 43,200 sq m Two properties sold for 3.8 million at December 2015 valuation 16

17 Property Performance UK portfolio Excluding 50.5 million of development land: North Tyne, UK Year Properties Tenants Built area Vacant area Passing rent ( m) Value ( m) Dec ,746 1,459, % % Dec ,776 1,508, % % Yield 39% of Hansteen s property investments Like-for-like valuation increased by 17.8 million or 2.7% Like-for-like occupancy increased by 56,000 sq m Like-for-like rent up 0.5 million 29 sales for 17.4 million profit of 1.6 million over 31 December 2015 valuation. Hansteen share = 1.0 million Kings Court, Tyneside, UK 17

18 Industrial Multi Property Trust The Portfolio 51 multi let industrial properties, 481 units 1.7 million sq. ft. portfolio, valuation 85 million Rent roll c. 8 million pa Asset management opportunities Properties located close to existing Hansteen management offices Amersfoort, Netherlands 18

19 Industrial Multi Property Trust Background Quoted on the Specialist Fund Segment of London Stock Exchange since October 2014 Alpha Real Trust Limited own 18.7% of shares in IMPT Alpha Real Capital LLP: Investment Adviser and Manager Public disagreement between Independent Directors and Investment Manager Highly geared, LTV of 73% as at 31 December 16, no dividends have been paid to IMPT shareholders since 2008 Amersfoort, Netherlands 19

20 Industrial Multi Property Trust Hansteen offer Cash offer to shareholders at 300p per share Notice served on Investment Managers Hansteen prepared to refinance junior debt At First closing on 15 March 2017, Hansteen purchased/received acceptances for 50.98% of the shares Offer period extended to 22 March 2017 Amersfoort, Netherlands 20

21 Outlook Complete sale Return cash to shareholders Focus on UK investments Occupational market remains strong Rental growth Investment demand for urban logistics continuing Nelson Street, Middlesbrough Etruria Trading Estate, Newcastle-under-Lyme 21

22 Full Year Results to 31 December 2016 APPENDIX North Tyne Industrial Estate, Tyne and Wear 22

23 millions Profit and dividend track record Normalised Income Profit Dividends million million 40 Normalised Income Profit 30 Dividend Year 23

24 Financials 2016 Balance sheet analysis December 2016 Position December 2016: Borrowings NDV 42.2% NDV exc convertible 35.9% Average cost 3.2% Total swapped 45.3% average rate 0.7% Total capped 15.6% average rate 1.2% Total fixed (convertible) 11.0% rate 4.0% Total floating 26.9% Alfred Nobel Straase, Germany Dormagen, Germany Convertible 100 million convertible bond. Conditions for convert met during 2016 Current convert rate of 91.35p (92.8 million shares) Dreiech, Germany See appendix for details 24

25 Financials 2016 Debt and cash million 31 December December 2015 Germany debt Benelux debt Convertible Total Euro debt Total Euro debt in Sterling UK debt Total debt Cash Property 1,738 1,072 Net LTV 41% 41% Net LTV assuming convertible converts 36% 34% Gross average cost of borrowing 3.2% 3.6% Weighted average length to expiry 3.3 years 2.8 years 25

26 Appendix Borrowings summary Country Bank Debt Amount EUR Debt Amount GBP Jun-17 Dec-17 Dec-18 Dec-19 Dec-20 Dec-22 Dec-24 Dec-26 Germany Helaba 187, ,019 Feb- 19 Germany HSBC 104,115 89,361 Dec- 18 Germany HSBC 40,000 34,332 Sep- 19 Netherlands ING 143, ,165 Jun- 21 Belgium BNP Paribas Fortis 5,335 4,579 Mar- 25 UK RBS 326, ,000 Jul- 21 UK RBS 23,302 20,000 Oct -17 UK RBS-Conv. 100,000 85,830 Jul- 18 Jul-18 Total 930, ,286 / :