Green REIT sees net asset value rise in half-year

Green REIT announced its results for the six months to 31 December on Tuesday, with a 4.2% increase in EPRA net asset value to 158.2 euro cents per share before payment of the FY 2016 dividend in November, or a 1.1% net increase to 153.5 cents per share post dividend.

The London-listed firm said EPRA earnings per share increased 37% to 2.6 cents per share, while total earnings per share decreased to 6.4 cents from 10 cents.

It reported strong growth in EPRA earnings of 41.5% to €17.8m for the six months, with EPRA earnings contributing 41% of total profit.

There was a 6.2% increase in contracted annual rent to €65.1m from 21 properties, the board said, with profit for the period of €43.7m - down from €67.1m - including revaluation surpluses.

Property value improved 4.4% for properties held throughout the period, or 5.4% when the additional lands acquired at Horizon Logistics Park were included.

Total return was down at 13.5% for the 12 months to 31 December, compared to 20% in 2015, although the property loan-to-value ratio remained low at 21.3% - a slight uplift from 20.6%.

“Our 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,” said chairman Gary Kennedy.

“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.”

Pat Gunne, chief executive of Green Property REIT Ventures, added the company retained “great optionality” around its future development programme, both in the short and the longer term, with a projected end value in excess of €460m.

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

“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.”