Cairn Homes (CRN) only began trading in June but already the Irish housebuilder has deployed €554m (£435m), a figure that exceeds the combined proceeds of the IPO and a follow-on share placing in December.
The most important milestone in this spending spree was the acquisition of the Project Clear loan portfolio in December for €378m. This deal gives Cairn access to the largest residential land bank in Ireland and 20 per cent of the available residentially-zoned land in the greater Dublin area. Rising rent levels and an acute shortage of rental opportunities have made the Irish capital a strategic priority for the property group, where it believes it can respond to the housing need.
To underscore this, Cairn spent €172m acquiring a further 1,916 units primarily in Dublin and the city's commuter belt during the period. Together with the Project Clear portfolio, Cairn has the potential to build more than 11,000 units, though to date just 52 sales have been agreed.
Analysts at Goodbody expect adjusted EPS to hit 1¢ this calendar year, up on the 1.1¢ loss per share in 2015.
CAIRN HOMES (CRN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 117¢ | MARKET VALUE: | €602m | |
| TOUCH: | 116-117¢ | 12-MONTH HIGH: | 123¢ | LOW: 100¢ |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 96¢ | NET DEBT: | 6%^ | |
| Year to 31 Dec | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2014 | - | - | - | - |
| 2015 | 3.7 | -37.5 | -15.9 | nil |
| % change | - | - | - | - |
Ex-div:na Payment:na £1=€1.27. ^Includes restricted cash of €27m. | ||||
