Irish property investment group Green Reit (GRN) hit an important milestone during the latter half of 2016, completing and letting out its first office development. The 32,000 square foot (sq ft) development in Dublin has an annual contracted rent of €1.67m (£1.4m), up 11 per cent on its estimated rental value (ERV) at the end of June. On a group level annual contracted rent increased 6 per cent, surpassing the €65m mark.
Continued recovery of the Irish economy meant city office space remained sought-after. Vacancy rates fell to 1.4 per cent, from 1.7 per cent in 2015. Net rental income increased a fifth to €27.4m. Three tenants decided not to exercise their lease breaks, effectively adding nine years of certain €1.2m contracted rent.
However revaluation gains on the investment portfolio were around half what they were in 2015, which dug into pre-tax profits. In December, the group acquired 164 acres of land adjacent to its existing holding at Horizon Logistics Park at Dublin Airport. The first speculative unit at the site was let to DHL at €8.50 per sq ft, with the next unit due for completion in April. The acquisition of One Albert Quay in Cork was also completed and is now fully let.
GREEN REIT (GRN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 138.5¢ | MARKET VALUE: | €956m | |
| TOUCH: | 138.3-139¢ | 12-MONTH HIGH: | 153¢ | LOW: 119¢ |
| DIVIDEND YIELD: | 3.3% | TRADING PROP: | nil | |
| DISCOUNT TO NAV: | 10% | |||
| INVESTMENT PROP: | €1.31bn | NET DEBT: | 23% | |
| Half-year to 31 Dec | Net asset value (¢) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2015 | 154 | 67.1 | 10.0 | nil |
| 2016 | 154 | 43.7 | 6.4 | nil |
| % change | - | -35 | -36 | - |
Ex-div: na Payment: na | ||||
