Irish property investment company Green REIT's (GRN) foray into the Dublin market following its flotation two years ago is proving to be both timely and lucrative. Adjusted net asset value (NAV) grew by 21 per cent in the year to June, boosted by a €114m (£84m) valuation uplift in the investment portfolio.
Acquisitions made during the year to June included the €375m purchase of the Sapphire portfolio, its largest acquisition so far. The six properties bring in a contracted rent of €23.7m, and since the deal was sealed last October, the portfolio has seen a valuation uplift of 17.5 per cent. Planning approval is awaited on the Dawson Street site acquired for €23m, which, if secured, will allow rebuilding of the site, doubling the lettable floor area.
Additional developments include One Albert Quay in Cork, where around 166,000 sq ft of office space is expected to complete in the first quarter of 2016. Around half the space is already pre-let, and full occupancy is expected to generate up to €4.1m in rental income.
The company is now moving from the portfolio assembly stage to the active management and development phase, with significant potential for increasing rental income and capital values. Progress with these twin objectives is already advancing nicely, with net rental and related income more than trebling to €37.8m.
Analysts at Davy Research expected to upgrade their NAV estimates for December 2016 to near 150¢ a share.
| GREEN REIT (GRN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 149.5¢ | MARKET VALUE: | €997m | |
| TOUCH: | 149.5-150¢ | 12-MONTH HIGH: | 170¢ | LOW: 121¢ |
| DIVIDEND YIELD: | 1.1% | TRADING PROPERTIES: | nil | |
| PREMIUM TO NAV: | 11% | NET DEBT: | 6% | |
| INVESTMENT PROPERTIES: | €895m* | |||
| Year to 30 Jun | Net asset value (¢) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2013** | 97 | |||
| 2014 | 109 | 43 | 12.4 | 0.92 |
| 2015 | 135 | 157 | 23.5 | 1.6 |
| % change | +24 | +263 | +90 | +74 |
Ex-div: tba Payment: tba *Includes €78m investment in joint venture **Basic NAV as at 31 December 2013 £1=€1.36 | ||||
