Hansteen Holdings

Having made a number of acquisitions property investor Hansteen Holdings (HSTN)  reported a 115% increase in pre-tax profits to £16.8m for the six months to June.

The fully-listed group declared pre-tax profits of £16.8m with its annualised rent roll rising from £58.2m to £61.5m. Hansteen's portfolio value increased from £744.6m to £780.1m while its net asset value per share rose from 84p to 87p. The interim dividend increased from 1.6p to 2.1p. The profits were bolstered by a one-off payment of£5.3m from an insurance claim in Bremen, Germany.

Hansteen noted that it had raised £150m this May and had made 20 sales netting a total of £17.8m, a profit of £1.2m over book value. Cash stood at £209m, with total borrowings of £475m. Looking forward the group argued that 'realising and distributing profits is key to sustaining long term shareholder value' adding that it is looking for both 'robust and growing' income and 'long-term capital appreciation'.

Analysts at Peel Hunt are forecasting pre-tax profits of £27.1m (EPS: 4.7p) for the year to December 2011.

Shares in Hansteen were last rated by Growth Company Investor as a hold this January at 81.5p. The company boasts a considerable warchest and has continued its progressive dividend policy. Its assets are pan-European with a strong industrial portfolio in Germany and France in particular, and closer to home in towns such as Cambridge. A company that pays a respectable yield we see little reason to change our hold rating.