- Industrial property developer Hansteen Holdings reported a fall in profits as the sale of assets reduced property rental income.

In 2018, profit before tax fell 15% to £59.5m, earnings, or EPRA net asset value fell to 102.7p from 130.6p at the end of 2017, and the property valuation increased %, or £24.1m. 

As the group was net sellers of £237.6m of property during 2018, the substantial sales reduced normalised income profit – the company’s measure of underlying realised profits – to £25.8m for the year, from £31.3m seen a year earlier, while normalised total profit rose to £45.8m from £37.5m. 

Property rental income fell £52m from £94.8m a year earlier and like-for-like property valuation increased 6.5%.

The company signed 874 new leases and renewals at 10.4% ahead of ERV at 31 December 2017.

The dividend was increased by to 6.2p from 6.1p a year earlier.

'2018 was another very successful year for Hansteen with income growth, profit on sales and growth in NAV per share when adjusted for the material return of capital during the year,' said Melvyn Egglenton, Chairman of Hansteen.

'The Hansteen management platform is, we believe, among the best in the sector and is a significant asset to the Group. As a result of the quantity of property sold in the last few years, the size of the management platform has decreased, accordingly, we have reduced the cost of running the business in-line with the reduced capital base and the reduced property portfolio.'

'The team is well placed to manage the portfolio going forward. We believe that our diverse portfolio and management focus presents a rare combination in today's property sector that can achieve both income and capital growth.'

At 9:54am: [LON:HSTN] Hansteen Holdings PLC share price was +0.9p at 93.65p

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