4th Sep 2019 14:45
(Alliance News) - Irish commercial property investment trust Yew Grove REIT PLC on Wednesday reported a rise in net assets over the first half, saying it has made "significant progress" since London stock listing in June 2018.
At June 30, Yew Grove's IFRS NAV per share stood at 103.99 euro cents compared to 100.18 cents at the end of December, which represents a 3.8% rise.
The real estate investment trust's net assets increased 3.9% over the first half to EUR78.0 million from EUR75.1 million.
Yew Grove paid its inaugural dividend during the period and instituted a quarterly dividend policy. The firm paid two quarterly dividends in the period of 1.10 cents and 3.23 cents. The second distribution included a special dividend of 1.86 cents following a lease surrender received during the period.
At the end of the half, Yew Grove's annualised rent roll stood at EUR7.5 million compared to EUR6.3 million at the end of December, a 19% jump.
The portfolio has been independently valued at EUR90.5 million compared to EUR77.9 million at December 31. The 16% rise can be attributed to Yew Grove acquiring two additional investment properties in the half.
"In just over a year since our IPO we have made significant progress on our objectives: we have committed the capital raised in 2018 and established a EUR100 million share issuance programme of which EUR10 million has been placed and deployed alongside additional debt capital; we have commenced quarterly distributions to our shareholders; we have a number of asset management projects underway; and we have a strong pipeline of investments to deliver our investment targets," said Chief Executive Jonathan Laredo.
Laredo continued: "Yew Grove REIT is the only Irish REIT focussed on the office and industrial sectors of the real estate market outside of Dublin's traditional central business district. This area of the market continues to combine attractive purchase yields and rising rent levels. These trends align with Yew Grove REIT's differentiated strategy, targeting well tenanted commercial real estate and I look forward with a high degree of optimism to the second half of our first full year of active operations."
Yew Grove's portfolio holds a weighted average unexpired lease terms of 3.8 years to break and 6.6 years to expiry. The portfolio holds a gross yield value at fair value of 8.3%, with a gross reversionary yield of 8.9%, up from 8.1% and 8.7%, respectively, at the end of 2018.
Chair Barry O'Dowd added: "Despite headwinds in the Irish property market there is continued growth and opportunity within it. The evidence in our markets suggests that we are in a rising market, with demand for properties outstripping supply and tenants with robust businesses in expansion mode; a backdrop supportive of continued improvements to rents, take up and vacancy. We have sought to take advantage of these opportunities and will continue to do so."
Shares in Yew Grove REIT were untraded in London on Wednesday at EUR0.95 each.
Related Shares:
YEW.L