KEY FINANCIALS

High quality portfolio delivering consistent returns

  • EPRA NAV per share up 2.2% to €1.83 per share, post payment of 2.7 cent per share dividend in October 2018. Increase of 3.7% gross of dividends paid in October 2018
  • 12.6% total return for the year to 31 December 2018 (year to 30 June 2018: 13.4%) based on growth in EPRA NAV and dividends paid
  • Profit for the period of €45.6 million (2017: €53.0 million) and EPS 6.5 cent (2017: 7.7 cent), reflecting moderating valuation uplifts
  • Portfolio valued at €1,483 million (30 June 2018: €1,424 million), up 4.1% gross of capital expenditure
  • Property revaluation surpluses of €25.4 million (2017: €31.3 million)
  • EPRA Earnings of €21.7 million (2017: €22.1 million) or 3.1 cent per share (2017: 3.2 cent per
    share)
  • LTV remains low at 17.5% (30 June 2018: 15.5%), with undrawn facilities at period end of €101
    million providing further capital for deployment into development pipeline
  • Interim dividend of 2.8 cent per share (2017: 2.6 cent interim dividend). Guidance of a dividend
    of 4% per annum on NAV post current development programme reaffirmed

Prime portfolio with income security of 8.7 years

  • WAULT of 8.7 years across the portfolio at 31 December 2018, maintaining a record high for the Company
  • 4% increase in contracted annual rent to €74.4 million (€71.7 million at 30 June 2018), or €75.5 million including the pre-letting agreement signed with Bunzl at Horizon Logistics Park
  • €2.9 million of new annual rent secured through 3 new lettings/pre-lettings on 12,900 square metres (139,100 square feet) signed in the period
  • Four rent reviews settled in the period, achieving a 37% (€0.8 million) annual rental uplift on the previous rent
  • Low EPRA vacancy rate of 3.5% (30 June 2018: 4.4%) at period end
  • 3% reversionary potential across the standing portfolio, or 7% across our Dublin city centre
    offices

€600 million accretive development pipeline

  • Strategic focus on NAV and income growth through development, supported by robust occupier demand and disciplined approach to capital allocation
  • Building I in Central Park, totalling 9,400 square metres (101,000 square feet) of office space, completing in Q1 2019. Top two floors reserved, with positive letting traction
  • Further €30 million invested in office and logistics developments (€19.9 million in offices, €10.1 million in logistics)
  • Completion of a unit at Horizon Logistics Park for a luxury goods retailer, adding €1.45 million to annual contracted rent
  • Construction of purpose-built unit of 10,700 square metres (115,000 square feet) for Bunzl commenced in February 2019
  • Two further units at Horizon Logistics Park due to complete in Q2 2019 (5,400 square metres/58,000 square feet)
  • €37 million of potential future rent from extensive future development pipeline, with a projected end value of €600 million

Strategic focus on prime offices and logistics

  • Portfolio dominated by offices (88% by value) and logistics (7% by value)
  • Target allocation to logistics in excess of 20% over the medium-to-longer term as Horizon Logistics Park, Ireland’s premier logistics location, is developed out
  • Nine acres of additional land acquired at Horizon Logistics Park since 30 June 2018

Gary Kennedy, Chairman of Green REIT plc, commented: “The Company is well positioned to take advantage of further opportunities and to continue to deliver attractive risk-adjusted returns to its shareholders, underpinned by our high quality and well-located portfolio, the security of our income and our exciting development pipeline. While we remain alert to the prevailing wider economic and political uncertainty, Irish commercial real estate, particularly our sectors of focus, offices and logistics, continues to perform well.”

Pat Gunne, Chief Executive of Green Property REIT Ventures, added: “The quality of our portfolio has never been stronger, and we continue to exploit value-accretive opportunities in both logistics and offices, through our active asset management and development programmes. The market remains supportive of our strategy, with prevailing values well-underpinned by healthy overseas and domestic demand for prime Irish commercial real estate.”

31 December 201830 June 2018Change
Balance Sheet:
Total Property Value€1,483.2m€1,424.4m+4.1%
EPRA Net Assets€1,279.5m€1,251.2m+2.3%
EPRA NAV per Share182.9 cent178.9 cent+2.3%
Property LTV17.5%15.5%+2.0 pps
Income Statement:
Rental Income (excluding service charge income)€34.4m€33.7m+2.1%
Profit for the Period€45.6m€53.0m-14.0%
EPRA Earnings€21.7m€22.1m-1.8%
EPS – Basic6.5 cent7.7 cent-14.6%
EPS – EPRA3.1 cent3.2 cent-2.5%

Download our Interim Results 6 months to 31 December 2018 presentation here

Watch the Green REIT plc Interim Results 6 months to 31 December 2018 webcast here