INTERIM RESULTS FOR THE 6 MONTHS TO 31 DECEMBER 2017

Dublin, 20 February, 2018 – Green REIT plc, (“Green REIT” or the “Company”), the Irish property investment company, today announces its results for the six months ended 31 December 2017.

Strong financial performance despite stamp duty increase

  • Profit for the period of €53.1 million up 21.4% on the same period last year (December 2016: €43.7 million). EPS of 7.7 cent (December 2016: 6.4 cent)
  • 24.5% uplift in EPRA Earnings for the period to €22.1 million (December 2016: €17.8 million). EPRA EPS of 3.2 cent, up 23.4%
  • 19.2% increase in rental income to €33.7 million (December 2016: €28.3m)
  • EPRA NAV per share up 1.6% to 168.3 cent (June 2017: 165.6 cent), post payment of a 5 cent dividend and an increase in stamp duty from 2% to 6% in October 2017 (8.5 cent NAV impact)
  • Total return of 13.6% for the year to 31 December 2017 (2016: 13.5%)
  • LTV remains low at 22.1%, with an all-in cost of debt of 1.8%
  • Interim dividend of 2.6 cent per share for the 6 months to 31 December 2017
  • 5% increase in portfolio value in the 6 months to €1.45 billion, or 2% on a like-for-like basis

Development pipeline continuing to deliver; prime buildings attracting blue chip tenants

  • Completion of One Molesworth Street, adding €4.0 million of contracted annual rent and 5.3 cent/€36.8 million to NAV
  • Further €8.6 million of annual rent to come from developments in progress, €2.2 million of which has been secured at Horizon Logistics Park
  • Commenced construction of Building I in Central Park, with completion in Q4 2018 of this 9,000 square metre (97,000 square feet) office building Commenced construction of 3 new units at Horizon Logistics Park with one pre-let at an annual rent of €1.5 million, with 19,200 square metres (207,000 square feet) now under construction at the logistics park
  • Further 28 acres of land acquired at Horizon Logistics Park, bringing total land holding to circa 300 acres, providing short, medium and longer term optionality
  • Potential future development of 37,200 square metres (400,000 square feet) at Central Park, post Building I

Rent roll continues to grow, with income security further enhanced

  • 5.5% increase in contracted annual rent to €72.7 million in the period
  • Potential to grow contracted annual rent to €87 million through developments in progress, reversion and letting of vacant space
  • New lettings driving record WAULT of 8.2 years
  • Seven rent reviews settled with an 11% rental uplift, increasing annual rent by €1.0 million
  • 5% reversionary potential across the standing portfolio

Dividend growth from increased EPRA Earnings; 4% guidance on NAV remains

  • 5 cent per share paid in October 2017, or 3% of NAV at 30 June 2017
  • 2.6 cent interim dividend for the 6 months to December 2017, or 80% of EPRA Earnings for that period, to be paid in March 2018
  • Guidance of a dividend of 4% per annum on NAV remains, post completion and letting of our developments in progress

Gary Kennedy, Chairman of Green REIT plc, commented: “Our strategic focus continues to be on driving risk adjusted returns for shareholders, through our development schemes and a progressive dividend policy which is underpinned by a high quality portfolio and managed by a highly skilled and experienced team. We continue to operate against a backdrop of sustained economic growth in Ireland, and a robust occupier market in our key sectors, Dublin offices and logistics.”

Pat Gunne, Chief Executive of Green Property REIT Ventures, added: “Profit from our development schemes, particularly the recently completed One Molesworth Street, was key to mitigating the unexpected trebling of stamp duty announced in the October 2017 budget. This, combined with the continued improvement in our rental profits showing a 24% rise, is testament to the high quality of our portfolio, and the underlying security of our income from strong tenants. Our asset management and development programme continues to be supported by a strong economic backdrop and robust take up by FDI and domestic occupiers.” 

ENDS

Green REIT plc
32 Molesworth Street,
D02 Y512, Ireland
Phone: +353 1 241 8400

 

Download the interim results from the Reports page