The timely formation of Green REIT (GRN) followed hot on the heels of legislation introduced by the Irish government to allow real estate investment trusts. A total of €710m (£564m) was raised through an initial public offering in July last year and a secondary offering in May.
Dipping into a totally bombed out Irish property market took courage, but the timing in this case has been just right. Rebounding demand for prime property assets has allowed the company to report a 14.2 per cent uplift in property values over their purchase prices. At the June year end, investments totalled €365m, with further commitments of €383m. Crucially, this means the rent roll of €28.5m at the year end will increase to €52.2m with the completion of acquisitions already under contract.
In addition to fully owned properties, the group owns a 50 per cent stake in a portfolio known as Central Park. That accounts for the €74m of debt incurred on acquisition, but the company's gearing remains minimal. With a targeted loan to value ratio of 35 per cent, Green has €322m of headroom to finance further acquisitions.
Around 90 per cent of the existing portfolio is located in Dublin, and offices account for three-quarters of the space. The company has signed up some impressive tenants, including government departments, banks and Vodafone (VOD).
| GREEN REIT (GRN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 130¢ | MARKET VALUE: | €867m | |
| TOUCH: | 129-130¢ | 12-MONTH HIGH: | 144¢ | LOW: 111¢ |
| DIVIDEND YIELD: | 0.7% | TRADING PROPERTIES: | nil | |
| PREMIUM TO NAV: | 19% | |||
| INVESTMENT PROP: | €328m* | NET DEBT: | 8% | |
| Year to 30 Jun | Net asset value (¢) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2013** | 97 | |||
| 2014 | 109 | 43.1 | 12.4 | 0.92 |
| % change | +12 | - | - | - |
Ex-div: tbc Payment: tbc £1 = €1.25 *Including €42m investment in joint venture **NAV as at 31 December 2013 | ||||
