Stenprop posts flat earnings in shift to multilet strategy

Stenprop has reported static earnings and a decline in payout to shareholders, citing its repositioning to become a fully focused multilet industrial REIT. Diluted EPRA NAV per share at the company, which has been aiming to cease its legacy third-party management activity and reduce its borrowings, stayed flat at £1.41 in the year to 31 March. Like-for-like portfolio values inched up by 0.8%. The total dividend for the year to March was trimmed to 6.75p a share, from 8p in the previous year. This is in line with guidance given at the time of its half-year results in November, when Stenprop cut its interim dividend. During the year, the firm converted to a REIT and listed on the London Stock Exchange. It sold 23 non-core properties for £248.3m, either above or at book value. Just under 43% of its portfolio now consists of multilet industrial assets, compared with 20.1% in 2018. The REIT plans to sell approximately £140m of property in the coming year, and redeploy the proceeds into buying around £100m more in multilet industrial assets. It also aims to reduce overall gearing to below 40%. Its LTV ratio is currently 44.2%, down from 49.2% in the previous year. Paul Arenson, chief executive of Stenprop, said: “We are pleased with the progress that Stenprop has made in the past financial year. Our dividend is in line with guidance and covered by property-related earnings. “All of our milestones for the year have been met and we are well positioned to meet our target milestones for the financial year ending 31 March 2020.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette