File picture: James White

CAPE TOWN – Stenprop, the UK multi-let industrial (MLI) property company, continues to deliver growth from its portfolio, with new rents consistently ahead of previous passing rents, chief executive Paul Arenson said on Tuesday. 

He said in a trading update for April 1 to June 30 that tenant demand had also continued to be strong, with supply constrained.

On its (MLI) portfolio lettings, Arenson said they had completed 29 new lettings and 17 lease renewals in the period, at average rental uplifts of 24 and 16 percent above the previous passing rent, respectively.

The average rent on the MLI portfolio was £5.08 (R92) per square foot. This was 7.7 percent below the average estimated rental value of the portfolio of £5.50 per square foot.

The vacancy rate stood at 5.5 percent, excluding space under refurbishment.

In the non-MLI portfolio seven lettings were completed, which would provide an annual rent of £402 861, while the vacancy rate stood at 1.2 percent.

Two small retail assets in the UK at Hemel Hempstead and Walsall were sold for £3.6 million, in line with the combined valuation at March 31.

“We now have only one remaining high street retail investment in the UK valued at £0.7 million, which is scheduled for sale before the end of the financial year,” Arenson said.

At June 30, 2019, MLI comprised 42 percent of Stenprop’s portfolio and Stenprop’s LTV was 43.9 percent. 

When unrestricted cash was added, LTV was 35.9 percent based on the March 31, 2019, valuations and exchange rates.

Strenprop’s share price closed 0.37 percent higher at R18.75 on the JSE on Tuesday.

BUSINESS REPORT