Thursday 19 September 2019

Green REIT sees its profit increase by double digits to €53m

Dublin's One Molesworth Street building, a mix of office and retail
Dublin's One Molesworth Street building, a mix of office and retail
Ellie Donnelly

Ellie Donnelly

Real estate investment trust company Green REIT has reported profit of €53m for the six months to 31 December 2017, an increase of 21pc on the same period in 2016.

The group reported a 24.5pc uplift in EPRA earnings for the six month period to €22.1m.

EPRA earnings is a measure of underlying operating performance of an investment property company excluding fair value gains and investment property disposals.

According to Davy analysts, the performance was driven by stronger-than-expected revaluation gains on the One Molesworth Street development, where the majority of profits have now been booked, as well as benefits from yield compression on Building H in Central Park and at 32 Molesworth Street.

"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," Gary Kennedy, chairman of Green REIT, said.

During the period the company, which last year signed an agreement with, among others, Barclays Bank to lease 3,437 sq m at its One Molesworth street development, saw its rental income increase by just under a fifth to €33.7m.

Meanwhile the company’s property portfolio recorded a 5pc increase to €1.45bn in the six month period. On a like-for-like basis, the portfolio increased by 2pc.

Green REIT confirmed that it would pay an interim dividend of 2.6 cent per share in respect of the six month period.

Going forwards Mr Kennedy said that the company continued to operate against a backdrop of "sustained economic growth in Ireland", and a robust occupier market in its key sectors, Dublin offices and logistics.

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