Monday 24 July 2017

Net asset value of Green REIT rises 4.2pc as annual rents jump 6.2pc

1 Molesworth Street, part of Green REIT portfolio Credit: Green REIT
1 Molesworth Street, part of Green REIT portfolio Credit: Green REIT
Louise Kelly

Louise Kelly

Green REIT have reported a 4.2pc increase in net asset value (NAV) to 158.2 cents per share.

A 6.2pc increase in contracted annual rent to €65.1m from 21 properties was also recorded in the results for the six months to 31 December 2016.

Some €4.1m of new annual rent was generated through new lettings, the largest of which was to MaplesFS on 32 Molesworth Street for €1.67m per year.

Profit - which includes revaluation surpluses - was recorded at €43.7m, down from €67.1m from the same period the previous year.

Chief Executive Pat Gunne said that Green REIT have great optionality around future development programme - with a projected end value in excess of €460m.

Read more: Green Reit portfolio puts company in prime position for post-Brexit world

"In the office sector, a likely beneficiary of Brexit, we have the potential to develop an additional 400,000 square feet at Central Park," he said.

"Whilst in the logistics sector, which saw the highest return in the Irish market in 2016, we now have the potential to create Ireland’s leading logistics hub, with 264 developable acres between Dublin Airport and the M50 motorway."

Chairman Gary Kennedy added that Green REIT's strategic focus continues to be on driving risk adjusted returns for shareholders, with a greater focus on income returns in line with where we are in the cycle.

"Our development phase is now well advanced and we look forward to the completion and letting of these high quality buildings into what is a robust office and industrial occupier market in Dublin," he said.

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