Our recent trading update for the period from 1 April 2019 to 30 June 2019 is as follows:
Continued leasing success and significant rental growth:
Multi-let industrial (MLI) portfolio lettings:
Non-MLI portfolio lettings
Paul Arenson, CEO, said:
"Our MLI portfolio continues to deliver growth, with new rents consistently ahead of previous passing rents. Tenant demand for MLI units across the UK continues to grow and supply remains constrained.
"During the quarter we made no new acquisitions. 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. 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."
"Our MLI portfolio continues to deliver growth, with new rents consistently ahead of previous passing rents. Tenant demand for MLI units across the UK continues to grow and supply remains constrained."
Stenprop is transitioning its portfolio from a diversified, pan-European investor into a focused UK MLI company, with the aim of becoming the UK's leading MLI business. Stenprop has set out a transition plan which involves transitioning the portfolio to at least 60% MLI and reducing overall leverage to a loan-to-value (LTV) ratio of no more than 40% by March 2020.
At 30 June 2019 MLI comprised 42% of Stenprop's portfolio and Stenprop's LTV was 43.9%. When unrestricted cash is added to this measure our overall LTV was 35.9% based on our 31 March 2019 valuations and exchange rates.