London, the UK. Picture: THINKSTOCK
- London, the UK. Picture: THINKSTOCK
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Western Europe-focused Stenprop’s performance in the year to March was severely hindered by a significant devaluation of the pound after the Brexit referendum in 2016.

The company, which earns its money in sterling but reports in euro, grew its dividend only 1.1% in the year.

CEO Paul Arenson said the dividend growth would have been 8.1% if average foreign exchange rates had been used.

At the end of the reporting period, Stenprop’s portfolio comprised an interest in 54 properties valued at €848.1m, with 40.3% in the UK, 41.7% in Germany and 18% in Switzerland, by value.

Without the depreciation of sterling against the euro, the earnings figure would have increased 5.6% and the group’s net asset value would have decreased 1.8% compared with the previous year’s.

"Apart from the negative impact of the sterling devaluation, our portfolio continued to perform in line with forecasts. We continue to pursue opportunities to recycle mature assets into new purchases likely to show enhanced growth in earnings, distributions and capital value over time," said Arenson.

Post reporting period, Stenprop bought a portfolio of multi-let industrial properties as well as the portfolio’s manager, C2 Capital, for a combined consideration of £130.5m.

Evan Robins of Old Mutual Investment Group said: "A poor result as both net asset value and earnings per share fell. We expected a poor result as the reasons for the declines were known in advance."

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