Green REIT reports 10% NAV growth – Green REIT has released preliminary results for the year ended 30 June 2017. It is reporting 10% NAV growth driven by development profits and increased underlying earnings.
Highlights:
- 10% increase in NAV from €1,048m to €1,152m
- 9% increase in EPRA NAV per share to EUR1.66, underpinning a 12.9% total return in the period
- 12% increase in contracted annual rent to EUR68.9 million, including EUR8 million per annum in new rent from developments and EUR2.4 million per annum from investment properties
- Revaluation surpluses of EUR97 million, of which EUR47 million is from new developments
- 33% growth in EPRA Earnings to EUR33 million and 31% increase in EPRA EPS to 4.8 cents per share
- LTV remains low at 20.2%, with undrawn facilities at year end of EUR82 million providing further capital for deployment into development pipeline
- Proposed full year dividend of 5 cents per share, a 9% increase over prior year, equating to 3% on June 2017 NAV
- Substantial value and income created through development completions, with expanded development programme and potential to deliver a further EUR11 million of annual rent
- Completion and full letting of office developments at 32 Molesworth Street and Building H in Central Park, adding EUR6.5 million to contracted annual rent and 6 cents/EUR41 million to EPRA NAV
- Commenced construction of Building I in Central Park, with completion in Q1 2019 of this 9,000 square metre (97,000 square feet) office building
- 164 acres of additional lands acquired at Horizon Logistics Park, with a further 30 acres contracted post year end, bringing total land holding to circa 300 acres, providing short, medium and longer term optionality
- Fourth new unit completed at Horizon Logistics Park, with 2 further pre-let units totalling 11,800 square metres (127,000 square feet) under construction and 2 further units to commence shortly
- Barclays Bank Ireland plc signed up at EUR62 per square foot at One Molesworth Street for over 50% of the office space, at an annual rent of EUR2.4 million
- EUR8.0 million of new contracted annual rent added from developments in the year to 30 June 2017, or EUR11.9 million including lettings completed since year end Potential future development of a minimum of 350,000 square feet at Central Park, post Building I
- Successful asset management initiatives driving record WAULT
- EUR2.4 million of new annual rent secured through new lettings on our investment properties
- Lease renegotiations agreed on EUR4.4 million of annual contracted rent, principally with Bank of America Merrill Lynch in Central Park (EUR2.3 million) and the Irish Government at 76-78 Harcourt Street (EUR1.0 million)
- WAULT of 8 years across the portfolio, a record high for the Company
- EPRA occupancy rate of 98.5% (30 June 2016: 98.3%)
- Dublin 2 and 4 offices 12% reversionary, with an average contracted rent per square foot of EUR43 versus EUR49 average ERV per square foot at 30 June 2017
Gary Kennedy, Chairman of Green REIT plc, commented: “This has been another year of strong results for the Company, with a significant contribution to both income and NAV from our development schemes. Our strategic focus continues to be on driving risk adjusted returns for shareholders, and we look forward to the further contributions to come from the completion and letting of our high quality buildings, against the backdrop of a robust office and logistics occupier market in Dublin.”
Pat Gunne, Chief Executive of Green Property REIT Ventures, added: “The market backdrop in Ireland continues to provide us with opportunity, particularly around our development assets, which are achieving considerable letting success ahead of expectations. The strong levels of foreign investment into Ireland, demonstrated by the ongoing success of IDA Ireland in attracting international projects, is one of the key factors encouraging us to expand upon our existing development programme as we continue to successfully de-risk our current pipeline.”
GRN : Green REIT reports 10% NAV growth