Disposals shave 11% off Stenprop portfolio

Stenprop’s portfolio totalled £653.8m at 30 September – an 11% decrease from the figure at 31 March – the company announced in its half-year report for the period ending 30 September. The multi-let industrial REIT sold £120.9m of non-MLI assets during the period. On a like-for-like basis, excluding acquisitions and disposals, the value of existing assets increased by 2.3%. The proportion of MLI assets in its portfolio has risen to 27%, compared with 20.1% for the same time last year. It now has 36 UK MLI properties out of a total of 74, with the bulk of its German and Swiss assets also held for sale. It sold off its joint venture interest in Argyll Street in London’s West End, generating £22.8m in June and selling the bulk of its Swiss portfolio for CHF103.65m (£81.6m) in July. In September Stenprop signed contracts for the sale of an Aldi retail portfolio, which will see Aldi acquire 14 properties for €32.8m (£29.3m), and completion on the sale is expected in December. Major acquisitions during the six-month period included six industrial estates for £24.9m, since the end of the period it has also purchased another estate for £4.8m. It has a further £30m to fund MLI acquisitions currently under consideration. Stenprop’s loan-to-value ratio for the six months was 47.3%, compared to 49.2% the previous year, against a target of 45% by 31 March 2019. The disposals reduced Stenprop’s debt by £62.1m. Gross rental income was static at £16m and its net operating income fell to £16.1m, down from £16.5m. UK MLI contributed £5.1m in rents, compared to £2.3m in the same period last year. The REIT said EPRA NAV per share reached £1.42 up by 0.7% from £1.141 in the same six-month period last year. Last year Stenprop transitioned to focus on the UK MLI market, the plan required the business to sell approximately £470m of non-MLI assets by March 2020, and to acquire £220m of MLI assets. To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette