10th Feb 2014 08:55
LONDON (Alliance News) - Newly established Irish property company Green REIT PLC Monday said it has made rapid progress in its first eight months, posting pretax profit of EUR121,000 for the period since it was established in July 2013.
The firm listed on the Irish and London Stock Exchanges in July, raising EUR310 million. It posted revenue of EUR1.7 million for the period June 24 to December 31, 2013 boosted by its office assets.
Net rental income from office assets amounted to EUR1.0 million, which was followed by retail asset income of EUR367,000. The smallest division - industrial - posted net rental income of EUR69,000.
Green REIT, which become Ireland's first real estate investment trust following the introduction of REIT legislation, said it invested EUR214 million on acquisitions including six properties in two off-market transactions for EUR28.5 million at an initial yield of 10.5%.
REITs receive special tax considerations and typically offer investors high yields, as well as a highly liquid method of investing in real estate.
The firm bought a portfolio of commercial real estate assets, D2 Portfolio, from Danske Bank Ireland for EUR23 million and a property on Mount Street, Dublin for EUR6.4 million.
The Mount Street property is currently let to the Office of Public Works, an Irish state body, with two years remaining on the lease agreement. There is an opportunity for refurbishment which will allow for significant income growth, the firm said.
Green said the fact that just over 70% of the initial equity raised has now been invested is testament to the scale of the opportunity in the country.
Green REIT said its EPRA and basic net asset value totalled EUR299.7 million while its EPRA and basic net asset value per share stood at 96.7 cents.
EPRA is the European Public Real Estate Association, the industry body for European REITs.
Overall the company said 88% of its portfolio is occupied mostly located in the capital Dublin, with total passing rent of EUR17.3 million a year.
Looking ahead the company said it expects increased activity in the Irish commercial property market this year and has set it sights on a portfolio of commercial real asset known as Central Park in Dublin.
Earlier this month, the firm said it has been selected as the preferred bidder for the acquisition by the National Asset Management Agency, but highlighted that there is no certainty that any transaction will occur.
"We have made rapid progress in our first eight months and the recent acquisition of the D2 Portfolio represents further progress towards our objective to assemble a portfolio of commercial property assets which require active asset management and will deliver value for our shareholders, Chairman Stephen Vernon added.
Green REIT shares were untraded Monday. They were last quoted at 1.27 pence per share.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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