Half year results announcement for the six months ended 30 September 2020
STENPROP LIMITED
(Registered in Guernsey)
(Registration number 64865)
LSE share code: STP JSE share code: STP
ISIN: GG00BFWMR296
("Stenprop" or the "Company")
SHORT-FORM ANNOUNCEMENT:
Half year results announcement for the six months ended 30 September 2020
The publication of this announcement is in line with Johannesburg Stock Exchange requirements.
Highlights for the six months ended 30 September 2020
4.4% 3.40p 8.38p 3.375p 36.6%
Like-for-like portfolio Adjusted EPS* Diluted IFRS EPS Dividend per share, fully LTV* ratio
valuation increase for period covered and maintained
Financial Highlights
- Fully covered dividend at 3.375 pence per share for the six months
ended 30 September 2020 (2019: 3.375p). A scrip alternative will be
offered, which the directors intend to match through the buyback of
shares.(1)
- 4.4% increase in diluted IFRS net asset value per share to GBP1.43
(31 March 2020: GBP1.37).
- 4.3% growth in EPRA Net Tangible Assets ('NTA') per share to
GBP1.44 (31 March 2020: GBP1.38) driven by an asset management led
uplift in property values, with like-for-like total portfolio valuation
growth of 4.4%.
- Diluted IFRS EPS increased 82.5% to 8.38 pence (2019: 4.59 pence).
Adjusted EPS was 3.40 pence (2019: 3.41 pence).
- Net rental income for the period of GBP15.0 million
(2019: GBP15.8 million). Profit from operations increased 65.0% to
GBP29.1 million (2019: GBP17.6 million).
- Headline earnings per share grew 2.0% to 3.08 pence
(2019: 3.02 pence).
- Strong balance sheet with cash and cash equivalents of GBP51.1 million,
including free cash of approximately GBP40 million.
- Group LTV was 36.6% (March 2020: 40.8%), falling to 29.6% when
applying free cash (March 2020: 27.7%). Significant headroom exists
for both interest cover and LTV loan covenants.
Operational Highlights
- Rent collection for the period remained strong at 90% across the
portfolio as at 30 September 2020.
- 18% average uplift in MLI passing rents driven by continued strong
leasing momentum with 119 new lettings/lease renewals at an
average lease term of 3.8 years, generating GBP2.3 million of rental
income per annum.
- MLI occupancy up 2.2% to 93.3% (March 2020: 91.1%) with total
occupancy at 94.4%.
- Notable increases in traffic through our industrials.co.uk website
resulted in a 30 % increase in direct leasing calls and total average
weekly leasing calls up approximately 100% compared to 2019.
- Five MLI estates acquired in the six-month period for an aggregate
purchase price of GBP40.0 million, generating an additional GBP2.5 million
of rental income per annum. A further three estates completed
post period end for GBP20.2 million, generating an additional
GBP1.4 million of rental income per annum.
- MLI portfolio surpassed five million sq ft for the first time, growing
the portfolio value to GBP360.5 million, up from GBP291.6 million at the
same time last year and representing 62.8% (2019: 44.6%) of the
total property portfolio by value with a target of 75% by the end of
the financial year.
- Recycling of assets on track with the sale of the NeucO§lln CarrA©e
retail park in Berlin at a sale price EUR27.0 million, 15.4% ahead of the
year end aluation. Further German sales expected in the
second half of the financial year.
* 'EPRA' means European Public Real Estate Association. 'NTA' means net tangible assets. 'EPS' means earnings per share. 'LTV' means loan-to-value.
'IFRS' means International Financial Reporting Standards.
'Like-for-Like' is a change in measure for reference data existing in the current and previous period. 'Free cash' is cash and cash equivalents
less restricted cash and cash held for other purposes.
(1) The interim dividend was declared by the directors on 2 December 2020. Part of the distribution will be a Property Income Distribution (known as a
PID) which, subject to certain exemptions, will attract UK withholding tax. A further announcement informing shareholders of the salient dates and
tax treatment will be released in due course.
Short-Form Announcement
This short-form announcement is the responsibility of the directors and represents a summary of the information contained in the full announcement released
on SENS and the LSE on 4 December 2020 and does not contain full or complete details of the financial results. None of the information contained in this
announcement has been reviewed or reported on by the Company's auditors. The full announcement can be accessed using the following JSE link:
https://senspdf.jse.co.za/documents/2020/jse/isse/STP/HY2020.pdf
Stenprop Limited's condensed financial statements for the six months ended 30 September 2020 have been reviewed by the Company's auditors BDO LLP, who have
provided an unqualified opinion within their review report. The full announcement including the Company's reviewed condensed financial statements is
available on the Company's website: stenprop.com/investors/results-and-presentations
Copies of the full announcement may be requested at 180 Great Portland Street, London, United Kingdom, and at the office of the sponsor, Java Capital, at
6th Floor, 1 Park Lane (entrance at 39 Wierda Road West), Wierda Valley, Sandton, 2196, Johannesburg, South Africa, during office hours at no charge from
Friday, 4 December 2020 to Friday, 11 December 2020. Any investment decision by shareholders and/or investors should be based on information contained in
the full announcement published on SENS and the LSE, and on the Company's website.
Stenprop Limited
4 December 2020
Registration number: 64865 | Registered office: Kingsway House, Havilland Street, St Peter Port, GY1 2QE, Guernsey
LSE share code: STP | JSE share code: STP | ISIN: GG00BFWMR296
www.stenprop.com
Date: 04-12-2020 09:00:00
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