Green REIT posts robust results as Irish economy grows

Irish property investor Green REIT has reported a 9% NAV uplift on 2017 €1.3bn (£1.2bn). In its latest financial year results, covering the year ended 30 June 2018, the firm also posted an 8% year-on-year increase in its NAV per share to 180.3 cents. In addition, Green REIT recorded an 11% jump in EPRA EPS from 4.8 cents for the previous year to 5.3 cents. Green REIT’s total return increased from 12.7% to 13.4% over the past year, while property LTV fell from 20.2% to 15.5% with undrawn facilities at year end of €139m providing further capital for deployment into its €600m development pipeline. The company’s portfolio, of which less than 1% is exposed to the turbulent retail market, was valued at €1.4bn, up by 3% on the previous year. Rental income increased by 12.4% to €67.9m, up from €60.4m. Ireland’s economy is expected to continue growing, which has created a positive outlook for the real estate market and maintained demand for high-quality office and logistics space. Four of the top 10 Dublin office occupiers have major additional requirements, Green REIT said. This has meant that a 7.2% yield is expected on the cost of its future developments. The firm also reported a 43% climb in the value of its development pipeline. Green REIT also reported a 12% increase in EPRA earnings to €36.9m for the year, up from €33m in 2017, and profit after tax of €144.2m at the end of June 2018, up from €129.8m the previous year. Gary Kennedy, chairman of Green REIT, said: “Our strategic focus continues to be on driving risk-adjusted returns for shareholders. This has been another year of strong contributions from our development schemes both to NAV and to the income base which drives our dividends. “We have further reweighted the portfolio towards our key sectors of offices and logistics, through effective capital recycling, and we look forward to creating additional value by capturing the development potential at Central Park and Horizon Logistics Park.” Green REIT has sold virtually all of its retail portfolio over the past two and a half years. In total, this has generated sales of €260m. Of that figure, it has reinvested roughly €140m into logistics. The company owns around 13m sq ft of land around Dublin Airport at Horizon Logistics Park. Pat Gunne, chief executive of Green Property REIT Ventures, added: “We made the decision to exit retail and take capital out to invest into logistics. The logistics sector in Ireland is running probably three to four years behind the UK and mainland Europe as the internet penetration here is lower. We are at the beginning of that evolution. Moreover, companies are definitely having to recheck their supply lines due to Brexit so we are probably going to benefit from that as well. The momentum is there.” To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette Main image © Michael Runkel/imageBROKER/REX/Shutterstock