Stenprop increases portfolio value by R274m

Paul Arenson, Stenprop CEO said the group's migration to the Main Board of the JSE in October 2015 was a great milestone.

Stenprop, a property company with dual primary listings on the Bermuda Stock Exchange and the JSE’s Main Board, has acquired a number properties in Europe, boosting the value of its portfolio by R274m (€18 million).

Commenting on the company’s interim financial results for the six months to September on Thursday, CEO Paul Arenson said our portfolio value increased by €18 million over the period, driven by a strengthening UK economy and strong growth in rental and capital values in central London.

During the period, the company completed the acquisition of our 50% interest in the multi-let office building, 25 Argyll Street, located in London’s West End as well as the Hermann Quartier retail centre in Berlin, further enhancing the quality of our current portfolio.

The group has an interest in 56 properties valued at €907 million mainly in the office and retail sectors. 44% of the portfolio is in the United Kingdom, 39% in Germany and 17% in Switzerland by value with six of the core properties accounting for 60% of the total portfolio asset value.

Stenprop’s diluted EPRA (European Public Real Estate Association) Net Asset Value (NAV) per share as at 30 September 2015 was €1.68, an increase of 1.8% since year-end. An interim dividend of 4.2 cents per share was declared for the six months to 30 September 2015.

The adjusted EPRA earnings attributable to shareholders were €14.3 million, resulting in diluted adjusted EPRA of 5.17 cents per share being reported, compared to the pro forma 4.90 cents per share in 2014. This equates to a 5.5% increase on the pro forma diluted adjusted EPRA earnings per share at 2 October 2014.

“Our migration to the Main Board of the JSE in October 2015 was a great milestone for the company. We believe that it has strengthened our position in the South African property sector amongst the investment community," said Mr Arenson.

The company’s overall gearing ratio decreased to 52.4%.

“We completed the refinancing of £64.6 million of debt on Euston House and Pilgrim Street in May 2015, taking advantage of lower longer term interest rates, and we remain committed to targeting an average of 50% gearing ratio as we build out our portfolio,” said Patsy Watson, Stenprop CFO.

Stenprop completed the acquisition of the Victoria shopping centre in Berlin at a purchase price of €20.6 million post the reporting period on 24 November 2015.

"We remain on track to deliver adjusted EPRA EPS of 10.32 cents per share and distributions totalling 8.5 cents per share for the year ending 31 March 2016,” concluded Arenson.