Sunday 18 February 2018

Profit at Green Reit down 11pc despite increase in rental income

One Molesworth street in Dublin 2.
One Molesworth street in Dublin 2.
Ellie Donnelly

Ellie Donnelly

Profit after tax at real estate investment trust Green Reit was down 11pc to €129.8m in the twelve months to 30 June, according to preliminary results from the company.

Despite the decrease in profit gross rental income, excluding service charge income and joint venture income, was €60.4m an increase of 7.2pc year-on-year.

The company had revaluation surpluses of €97m, of which €47m was from new developments.

Meanwhile its property portfolio valuation increased 11pc to €1.4bn in the twelve months to 30 June.

There was a 33pc growth in EPRA earnings to €33m and 31pc increase in EPRA EPS to 4.8 cents per share.

"This has been another year of strong results for the company, with a significant contribution to both income and NAV from our development schemes,” Gary Kennedy, chairman of Green REIT, said.

During the year the company said that substantial value and income was created through development completions, with potential to deliver a further €11m of annual rental income.

The completion and full letting of office developments at 32 Molesworth Street and Building H in Central Park added €6.5m to contracted annual rent and 6 cents/€41 million to EPRA NAV at the company.

Other highlights during the year included a contract agreed with Barclays Bank Ireland for One Molesworth Street for over 50pc of the office space at an annual rent of €2.4m, and lease renegotiations agreed on €4.4m annual contracted rent, principally with Bank of America Merrill Lynch in Central Park and the Irish Government at 76-78 Harcourt Street.

"Our strategic focus continues to be on driving risk adjusted returns for shareholders, and we look forward to the further contributions to come from the completion and letting of our high quality buildings, against the backdrop of a robust office and logistics occupier market in Dublin," Mr Kennedy said.

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