Will Hansteen Holdings plc Outperform Persimmon plc, Taylor Wimpey plc, Berkeley Group Holdings PLC And Intu Properties PLC After Results?

Will Hansteen Holdings plc’s (LON:HSTN) (LSE:HSTN.L) share price surge higher than those of Persimmon plc (LON:PSN) (LSE:PSN.L), Taylor Wimpey plc (LON:TW) (LSE:TW.L), Berkeley Group Holdings PLC (LON:BKG) (LSE:BKG.L) and Intu Properties PLC (LON:INTU) (LSE:INTU.L)?

Hansteen Holdings plc
Hansteen Holdings plc

The Hansteen Holdings plc (LON:HSTN) (LSE:HSTN.L) share price has gained 3.3% so far today after it released 2016 results. Hansteen’s total annual return to shareholders was 23.1p or 20.8%, which represents EPRA NAV growth of 17.7p and dividends paid of 5.35p per share. Hansteen’s IFRS profit before tax was £119.9 million, down from £171.4 million in 2015. However, normalised income profit and normalised total profit increased 29.4% and 4.4% respectively.

Hansteen’s EPRA NAV per share increased 15.9% to 128.9p, while full year dividends increased 12.4% to 5.9p per share. Its net debt to property value ratio was 40.9% against 41.2% in 2015. In my view, this is good news for Hansteen’s shareholders as it shows the company is not seeking higher returns from increased leverage.

The company acquired the remaining 18.2% of units in the Ashtenne Industrial Fund Unit Trust for £49.7 million, which increases its ownership to 100%. Hansteen has taken advantage of lower interest rates to refinance its UK portfolio with a new £30 million 5-year loan facility at an all-in cost of 2.3% per annum. Its Netherlands portfolio was also refinanced with a new €145 million 5-year loan facility at an all-in cost of 2.6% per annum.

Hansteen has also registered a LFL property valuation increase of 2.8% and a LFL rent roll improvement of £2.1 million per annum. It has also exchanged contracts for the sale of its German and Dutch portfolios for €1.28 billion after the period end.

In the last year, Hansteen’s share price has risen 20%. That’s ahead of the share price gains made by other property stocks such as Persimmon plc (LON:PSN) (LSE:PSN.L), Taylor Wimpey plc (LON:TW) (LSE:TW.L), Berkeley Group Holdings PLC (LON:BKG) (LSE:BKG.L) and Intu Properties PLC (LON:INTU) (LSE:INTU.L). Berkeley is down 1%, Persimmon’s share price is 1% higher, Taylor Wimpey has gained 3% and Intu is 11.5% lower.

In my view, Hansteen’s share price could perform well on a relative basis. I think it has a good strategy and its business became stronger in 2016. I still think Persimmon, Berkeley, Taylor Wimpey and Intu have more investment appeal for the long term on valuation grounds. However, I think Hansteen’s shares could have investment appeal due to its potential for improved performance.







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