(Alliance News) - Stenprop Ltd on Friday said earnings declined 23% in the first half of its current financial year as it is progressing with business restructuring.
The property management firm reported pretax profit of GBP13.4 million for the six months to the end of September compared to GBP17.4 million it delivered a year prior, as net rental income slipped by 1.3% to GBP15.8 million from GBP16.0 million.
The basic and diluted net asset value per share at the end of September stood at GBP1.41 and GBP1.39, respectively, up from GBP1.38 and GBP1.36, respectively, as at March 31.
Stenprop explained that it continues its transition into a focused UK multi-let industrial company, which involves transitioning the portfolio to at least 60% multi-let industrial assets and reducing overall leverage to a loan-to-value ratio of no more than 40% by March 2020.
As at the end of September, multi-let industrial assets comprised almost 45% of Stenprop's total portfolio.
No new acquisitions were made in the first quarter of the year. During the second quarter Stenprop acquired eight multi-let industrial estates for an aggregate price of GBP23.9 million, it said.
Over the period the company said it has completed 13 lettings totalling 51,857 square feet, which will provide total annual rent of GBP800,000. The average
term on the new lettings was 6.4 years, Stenprop said.
The company also sold two small retail properties in the UK at Walsall and Hemel Hempstead for a combined sale price of GBP3.6 million and broadly in line with the combined valuation as at the end of March.
Stenprop maintained its interim payout at 3.375 pence a share.
The stock was untraded in Johannesburg on Friday, last closing at ZAR21.60 a share, while in London, the shares were up 0.6% at 112.72p each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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