Rental boost for Green REIT

And progress in the six months to December 2015 has been impressive, with net rental income up by more than a half at €22.9m. Headline profits were down, but after adjusting for a lower contribution from its joint venture, operating profits actually rose 6 per cent to €54m. A €43m valuation uplift also helped to boost adjusted net asset value by 7 per cent to 140.7¢.

The group has also moved to strengthen its revenue stream by extending lease times. Specifically, Vodafone, which accounts for 11 per cent of group rent, extended its lease by 8 years, while Pioneer Investments, which accounts for 5 per cent of rental income, extended its lease by 10 years. Consequently, income generated from leases with a break clause or expiry by 2018 has been halved to 25 per cent of total income.

Gearing at the half year was just under 10 per cent but rose in January to 22 per cent following the purchase of the 50 per cent stake in Central Park not already owned, and One Albert Quay. However, gearing is expected to fall (before rising again to nearer the 25 per cent upper self-imposed limit) with the proposed sale of six assets.

Analysts at JP Morgan Cazenove are forecasting adjusted net asset value at the June year-end of 150¢.