Hansteen, the investor in Continental European and UK real estate, has reported an increase in normalised profits of 11 per cent in the first half of 2010 to GBP9.7m.

The company made a profit before tax of GBP7.8m in the first half, compared with a loss of GBP9.7m for the same period in 2009.

The portfolio was valued at GBP721.9m as of 30 June 2010, up from GBP422.8m in 2009.

The 30 June 2010 diluted EPRA net asset value was 80 pence per share, compared with 84 pence per share for financial year 2009.

The 30 June 2010 IFRS net asset value was 78 pence per share, compared with 84 pence per share for financial year 2009.

The portfolio yield was 8.06 per cent as at 30 June 2010.

A proposed interim dividend of 1.4 pence per share will be paid on 25 November 2010.

During the period Hansteen acquired a 9.3 million square foot German industrial portfolio for approximately EUR330.0m and the 1.2 million square foot multi-sector Kilmartin portfolio for GBP80.4m.

HPUT purchased GBP18.5m of properties in four transactions.

Hansteen exchanged contracts in August 2010 to acquire 12 properties from Kilmartin joint ventures for GBP13.5m.

James Hambro, Hansteen chairman, says: “The group started the year in a strong position with over GBP500m of available fire power to take advantage of the downturn and used a large part of this to acquire the German HBI and Kilmartin portfolios. In addition, the HPUT purchased GBP18.5m of properties in four transactions.
 
“Given the current economic outlook we expect opportunities for capital growth to be limited and will focus on generating a high income surplus from our assets while continuing to acquire assets capable of significant capital growth once the markets recover.”