Stenprop plans industrials spending spree post Covid-19

Stenprop is “keen” to take advantage of the conditions and embark on a buying spree, according to its chief executive Paul Arenson. “We intend to start making acquisitions with the cash we have available as soon as we feel the crisis is beginning to pass and we are able to properly understand its impact,” he said. “We hope that the crisis will create some interesting buying opportunities.” He added that the firm believes companies will be assessing their ‘just-in-time’ supply chains as it is becoming clear that “it is not viable to rely on geographically distant supply chains from single undiversified sources”. “We sense a desire for companies to have greater control over supplies and easier access, even if it means more cost. As a result, we expect to see more demand for multilet industrial units as the trend for ever increasing globalisation falters and more is made, sourced or stored locally.” Steprop, reporting its full year results, posted a 2.8% increase in the value of its portfolio, which is now 58% multilet industrial assets, to £532.6m. The business added that by 31 May it had received 82% of rent payments for the quarter commencing 25 March 2020. Vacancy across the portfolio fell from 10.2% to 8.9% on a like-for-like basis over the year. However, Stenprop saw its pretax profit fall by 44% to £16.1m for the year ending 31 March 2020, while revenue nudged down by 0.9% to £44.1m. Its net asset value per share was flat at £1.38 per share. The firm reported that over the course of the year it had reduced its LTV from 44.2% to 40.8%. At the end of March it had senior bank debt of £217.3m and cash totalling £85.6m, including available cash of £70m. To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette