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Stenprop Delivers Growth From Sharpened Industrial Property Focus

(Alliance News) - Dual-listed property firm Stenprop Ltd said Tuesday its heightened focus on ...

Alliance News 6 August, 2019 | 9:56AM
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(Alliance News) - Dual-listed property firm Stenprop Ltd said Tuesday its heightened focus on industrial properties was delivering growth, with new rents consistently ahead of previous rental income.

Between the start of April and end of June, Stenprop completed 29 new lettings and 17 lease renewals. The average rental uplifts compared to the previous passing rents stood at 24% for the new lettings and 16% for the renewals.

Across its multi-let industrial property portfolio, the average rent stands at GBP5.08 per square foot. This remains 7.7% below the average estimated rental value of GBP5.50 per square foot. The vacancy rate across its MLI properties stands at 5.5%.

"Our MLI portfolio continues to deliver growth, with new rents consistently ahead of previous passing rents," Stenprop Chief Executive Officer Paul Arenson said. "Tenant demand for MLI units across the UK continues to grow and supply remains constrained."

"During the quarter we made no new acquisitions," Arenson added. "We continue to be disciplined in our approach and will only buy if opportunities meet our defined acquisition and return criteria."

"We remain confident that suitable opportunities will unfold over the coming months," Arenson continued. "The investment market has been more muted in the first half of the year, but we have recently seen a noticeable increase in better-quality opportunities coming to market."

Stenprop has been rotating its assets away from retail to multi-let industrial as part of a strategy to become focused on industrial property. The firm aims to have 60% of all assets in MLI by the end of March 2020. At the end of June, 42% of its portfolio was MLI.

For its non-MLI properties, Stenprop sold two small retail assets for GBP3.6 million and has just one remaining UK high street property which is scheduled for sale by the end of 2019. For the remainder of the non-MLI assets, Stenprop secured seven lettings during the period with vacancies at just 1.2%.

Shares in Stenprop were 0.4% higher at ZAR18.75 in Johannesburg on Tuesday, untraded at 105.50 pence in London.

By Ahren Lester; ahrenlester@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Stenprop Ltd 110.00 GBX 0.00 -
Stenprop Ltd 2,150.00 ZAC 2.48 -

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