Hansteen 2016 outlook uncertain, says Numis

The outlook for industrial property investor Hansteen in 2016 is uncertain, according to Numis.

The full year 2015 results saw the completion of its 2012 to 2015 long term incentive plan (LTIP), bringing a payout of £51m to the two chief executives.

Capital values achieved a record increase of 11.1% as UK and German yields compressed 90 basis points (bps) and 100bps respectively in the year.

"This leaves the business in an interesting position: material yield compression seems unlikely…but the occupational market is robust, and the joint CEOs have sold shares worth c.£7.4m each…but maintained a holding of 9.6m shares each," Numis said.

"If management delivers over the next three year F-LTIP period as it has the last investors will have benefitted from market-beating returns; however management has indicated that to achieve this it may push loan to value ratio up."

Numis retained its 'hold' rating and target price of 113p, saying the new period is "clouded with uncertainty, and at -11% discount versus spot net asset value we see better risk adjusted returns elsewhere".