Stenprop (STP) 123p

Gain to date: 5.1%

Original entry point: Buy at 117p, 10 September 2020

Our positive call on industrial property investor Stenprop (STP) is off to a steady start.

Stenprop is moving towards being 100% invested in multi-let industrial (MLI) – essentially small, purpose-built industrial units in urban areas.

The company announced on 23 October that it had collected 80% of rent due for the December quarter.

For the full year to date, the company had collected 88% of rents due since April and agreed to defer a further 1% until a later date.

Like-for-like passing rent in the second quarter rose 2.5%. Occupancy levels in the MLI portfolio rose to 93.3% as at 30 September, up from 92% at the end of June.

Broker Numis says: ‘The progress on asset rotation is encouraging with management building on its impressive track record of profitable disposals.

‘The acquisition programme has commenced and we note the bullish comments about the strength of the pipeline which bode well for the ongoing transition of the business to c.75% MLI by 2021 rising to 100% MLI by 2022.’

SHARES SAYS: We still see plenty of value. Keep buying.

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