News

Hansteen's NAV rises

22 September 2008 16:30:00

Pan-European property investment company Hansteen Holdings saw its net asset value rise in the first half of the year despite slipping into the red.

Net asset value per share improved 5% to 145p from 138p at the end of last year, despite the company not deriving much benefit from the strength of the euro thanks to the company's hedged position in the European currency.

Loss before tax totalled £1.6m versus a profit of £13.6m the year before. However, under the company's preferred measure of profitability, which excludes gains and losses on investment property, currency hedging instruments and interest rate hedging instruments, "normalised profits" rose to £5.7m from £4.0m.

Annualised net rental income rose to £32.9m from £17.1m.

Given the current financial climate, the company intends to be cautious with regard to new acquisitions in Europe and husband resources in case bargains from distressed sellers become available.

"Although the occupancy market in Continental Europe remains robust and yields still far exceed the cost of money, given the shortage of bank finance worldwide there may well be outward pressure on yields in the second half of 2008," the company's chairman, Jamie Hambro, said.

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