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Yew Grove identifies 'strong pipeline' of acquisitions

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Disappointed: Yew Grove’s CEO, Jonathan Laredo

Disappointed: Yew Grove’s CEO, Jonathan Laredo

Disappointed: Yew Grove’s CEO, Jonathan Laredo

Listed commercial property company Yew Grove Reit says it has identified a "strong pipeline of potential acquisitions".

The Dublin-listed firm's credit facilities have increased to €40.4m and its future preference will be for offices in suburban locations, as well as in secondary cities.

Suburban offices will "do well" post Covid, said Jonathan Laredo, CEO of Yew Grove.

In the three months to September 30, Yew Grove collected 98pc of its rent.

This is up on the rental collection rate of 97pc for the three months prior to that, according to interim results from the company.

However, Mr Laredo yesterday told the Irish Independent he was "disappointed" with how the company's share price - currently trading at €0.83 in Dublin - is performing.

"Liquidity is the main reason the share price is not performing better", Mr Laredo said, adding that "Ireland is a small market and we are a small company".

"This is something management needs to address, it is nothing to do with the company fundamentals," he said.

The Government, foreign direct investment (FDI) firms, and large businesses account for around 95pc of the group's rental income, with the remainder coming from small and medium firms (SMEs).

Yew Grove's portfolio has a current market value of just over €141m, down €15,000 from the year-end valuation at December 31 on a pro forma basis.

The company's annualised rent roll at the end of June was €10.4m, up from €8.9m at the end of 2019. Since then it has increased further to €11.1m.

"Despite the strains imposed on businesses by the [Covid-19] crisis, the strength of our tenant covenants continues to be reflected in the robust performance of our rent roll and the stability of our portfolio valuation," Mr Laredo said.

In the first half of this year Yew Grove purchased six assets for a total of €25.3m.

The company's Net Asset Value (NAV) per ordinary share was 97.39 cents at June 30, down slightly on the NAV of 98.52 cents at December 31 due to acquisition costs.

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"H1 2020 has been a period of considerable income growth for Yew Grove as it stabilised its portfolio following a busy period of acquisitions," said Colm Lauder, analyst at Goodbody.

"At a market level, the Covid-19 crisis has brought income security to the fore across the sector, with Yew Grove's performance amongst the best of its peers, this will stand to it as the Irish economy faces a nascent post-Covid recovery."


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