Green REIT (GRN) operates in and around Dublin, where demand for office and logistics space remains very strong. This has helped to drive valuations higher, and in the year to June the property portfolio attracted a €109.2m (£97m) valuation uplift. Together with a 12 per cent rise in rental income to €67.9m, this helped to push adjusted net asset value (NAV) ahead by 8 per cent to 178.9¢ a share.
The company made great use of recycling capital from mature assets into new investments, highlighted by the sale of Westland retail park for €147.7m, representing a 55 per cent profit on cost. A total of €260m of disposals have been made in the past two-and-a-half years, 75 per cent of which is retail assets, where its exposure now is less than 1 per cent.
Some of the proceeds were used to increase its exposure to urban logistics, as the demand for warehouse space accelerates with the growth in e-commerce. This switch is less advanced than in the UK, so there is plenty of demand still to come, and the current 8 per cent exposure by valuation is expected to rise to around 20 per cent. The weighted average unexpired lease across the portfolio rose to a record 8.8 years, and of the entire development arm, 84 per cent has been pre-let.
| GREEN REIT (GRN) | ||||
| ORD PRICE: | 159¢ | MARKET VALUE: | €1.1bn | |
| TOUCH: | 158-160¢ | 12-MONTH HIGH: | 164¢ | LOW: 145¢ |
| DIVIDEND YIELD: | 3.3% | DEVELOPMENT STOCK: | €15m | |
| DISCOUNT TO NAV: | 12% | NET DEBT: | 14% | |
| INVESTMENT PROPERTIES: | €1.41bn | |||
| Year to 30 Jun | Net asset value (¢) | Pre-tax profit (€m) | Earnings per share (¢ ) | Dividend per share (¢ ) |
| 2014 | 109 | 43 | 12.4 | 0.92 |
| 2015 | 135 | 157 | 23.5 | 1.6 |
| 2016 | 154 | 146 | 21.5 | 4.6 |
| 2017 | 167 | 130 | 18.9 | 5 |
| 2018 | 180 | 144 | 20.8 | 5.3 |
| % change | +8 | +11 | +10 | +6 |
| Ex-div | 27 Sep | |||
| Payment: | 19 Oct | |||
| £1=€1.12 | ||||
