Hansteen Holdings, the UK and Europe focused real estate investment trust (REIT), is warning it faces currency headwinds as the debt crisis weakens the euro.
In its management statement Hansteen, which buys then rents industrial properties in Germany, Benelux and the UK says: "The euro has weakened further against sterling, as a result there will be an adverse currency effect on reported earnings and net asset value".
Operationally, the company's "total rent roll" - or regular rental income - had fallen to £76.4m by the end of April versus £79.3m at the end of December. Hansteen says currency movements were responsible for £1.5m of this drop and a decline in sales added a further £1m.
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Since the beginning of the year the group had sold 10 properties, raising £25m at an average price 4.5% above December 31st valuations.
Net debt by April 30th had fallen to £275m from £306.9m in December - it now stands at 36% of the value of Hansteen's portfolio.
The firm says occupational demand in Germany is "robust", and in the UK it is "stable but competitive" but in Benelux "the market continues to be difficult."
At the open in London the stock dropped 1.8% and is now 6.6% down since the beginning of 2012.
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