EUROPEAN property-focused Stenprop grew its headline earnings per share more than threefold for the nine months to December 2015, which should please its South African investors who see the group as a rand hedge.
South African investors are buying into offshore property funds, to escape the weak rand and sluggish domestic economy.
Stenprop, which invests in Germany, the UK and Switzerland, reported that its diluted headline earnings per share had climbed from 2.40 euro cents per share for the nine months to December 2014, to 8.03 euro cents per share for the same period in 2015.
This is while the company’s net asset value per share climbed from 1.50 euro cents to 1.66 euro cents.
CEO Paul Arenson said Stenprop was focused on providing investors with strong euro-denominated dividends in a competitive European property market.
"I am happy that we are serving our investors’ needs, many of who are South Africans desiring non-rand denominated returns. We have a very strong portfolio of assets and are benefiting from a good performance by the UK and German economies, especially," she said.
Stenprop has an interest in more than 50 properties valued at more than €900m, mainly in the office and retail property sectors.
By value, as much as 44% of the portfolio is in the UK, 39% in Germany and 17% in Switzerland, with six of the core properties accounting for 60% of the total portfolio asset value.
Stenprop is forecasting an overall total dividend of 8.5 cents euro cents per share for its financial year to June.
The company’s share price has grown 14% year to date, outpacing many locally based JSE listed property stocks. The FTSE/JSE Sapy (South African Property) index has risen 3.98% over the same period.
Mr Arenson said his focus had been on improving the quality of his existing assets, while new acquisitions looked highly expensive.
Stenprop would also look at restructuring its debt over the next few months, he said.
Various South African funds which have not been invested in the UK or Europe before, remain on the hunt for property portfolios and funds in those geographies.
Mr Arenson said he believed that Stenprop could be a takeover target. "We have a very strong, well-managed portfolio of assets and are primed to deliver consistent dividends regardless of incoming competition in Western Europe. We are probably an ideal takeover target but we remain focused on serving shareholders," he said.
Stanlib’s head of listed property funds, Keillen Ndlovu said Stenprop was an attractive investment, because of its exposure to strong assets in London and Germany, especially while South African assets were relatively a worse sell. "Offshore property valuations look more attractive on both a net asset value and yield basis," he said.
Residential apartment buildings stand on the bank of the River Thames on Wapping High Street in London in this file picture. Picture: BLOOMBERG
EUROPEAN property-focused Stenprop grew its headline earnings per share more than threefold for the nine months to December 2015, which should please its South African investors who see the group as a rand hedge.
South African investors are buying into offshore property funds, to escape the weak rand and sluggish domestic economy.
Stenprop, which invests in Germany, the UK and Switzerland, reported that its diluted headline earnings per share had climbed from 2.40 euro cents per share for the nine months to December 2014, to 8.03 euro cents per share for the same period in 2015.
This is while the company’s net asset value per share climbed from 1.50 euro cents to 1.66 euro cents.
CEO Paul Arenson said Stenprop was focused on providing investors with strong euro-denominated dividends in a competitive European property market.
"I am happy that we are serving our investors’ needs, many of who are South Africans desiring non-rand denominated returns. We have a very strong portfolio of assets and are benefiting from a good performance by the UK and German economies, especially," she said.
Stenprop has an interest in more than 50 properties valued at more than €900m, mainly in the office and retail property sectors.
By value, as much as 44% of the portfolio is in the UK, 39% in Germany and 17% in Switzerland, with six of the core properties accounting for 60% of the total portfolio asset value.
Stenprop is forecasting an overall total dividend of 8.5 cents euro cents per share for its financial year to June.
The company’s share price has grown 14% year to date, outpacing many locally based JSE listed property stocks. The FTSE/JSE Sapy (South African Property) index has risen 3.98% over the same period.
Mr Arenson said his focus had been on improving the quality of his existing assets, while new acquisitions looked highly expensive.
Stenprop would also look at restructuring its debt over the next few months, he said.
Various South African funds which have not been invested in the UK or Europe before, remain on the hunt for property portfolios and funds in those geographies.
Mr Arenson said he believed that Stenprop could be a takeover target. "We have a very strong, well-managed portfolio of assets and are primed to deliver consistent dividends regardless of incoming competition in Western Europe. We are probably an ideal takeover target but we remain focused on serving shareholders," he said.
Stanlib’s head of listed property funds, Keillen Ndlovu said Stenprop was an attractive investment, because of its exposure to strong assets in London and Germany, especially while South African assets were relatively a worse sell. "Offshore property valuations look more attractive on both a net asset value and yield basis," he said.
Change: 0.40%
Change: 0.47%
Change: -0.49%
Change: 0.53%
Change: 1.03%
Data supplied by Profile Data
Change: 1.71%
Change: 1.28%
Change: 0.40%
Change: 0.00%
Change: 1.64%
Data supplied by Profile Data
Change: -1.27%
Change: 0.00%
Change: 0.05%
Change: -0.08%
Change: 0.35%
Data supplied by Profile Data
Change: -0.02%
Change: 0.21%
Change: -0.06%
Change: 0.53%
Change: 0.70%
Data supplied by Profile Data