Hansteen opts to raise funds as profit soars

(ShareCast News) - Industrial property investor Hansteen said pre-tax profits rose by 55.5% in the first half of the year, to £103.7m from £66.7m, off stronger property valuations.Hansteen's property portfolio valuation increased by 7.8%, or by £87.6m during the period.Revenues were lower at £42.4m from £43.7m, while net asset value per share increased to 103p from 102p.An interim dividend proposed for November was increased by 5.1% to 2.1p from 2p paid in November last year.Hansteen sold its HPUT2 fund for £191.1m during the period, and made £21.5m from other property sales during the period.It acquired £22.3m in property at an average yield of 11% and vacancy of 16.9%.Hansteen also announced after acquiring a further 4.1% in the Ashtenne Industrial Fund for £11m during the period, it was to buy another 35.7% of the fund for £103.7m to increase its total stake to 76.5%.The company would raise £40m through a share placing to fund the deal, at a minimum of 110p per share.Chairman James Hambro said the outlook for the business continued to be positive."Whilst the recent issues affecting the Eurozone and the Euro are unhelpful, our view is that once the immediate volatility calms down the longer term effect is likely to reinforce the 'lower for longer' financial environment, Hambro said.Shares in Hansteen were up by 0.35% to 115p at 0823 BST.