Ireland’s Green REIT saw its profit decrease by 34.9% in the last six months of 2016 to €43.7m (£37.2m), compared with €67.1m in 2015.
In its interim results for the six months to the end of December 2016, the REIT reported valuation increases in the portfolio slowing during the second half of the year, though rents and income increased.
Contracted rent across its 21 properties rose by 6.2% to €65.1m, while it delivered a total return of 13.% for the year, compared with 20% in 2015.
Chairman Gary Kennedy said that Ireland continues to experience relatively strong growth in the wake of the Brexit referendum, though as of yet there had been little sign of relocations.
He said: “The potential impact from Brexit on both the Irish economy and Irish commercial real estate is still to be determined, with the general expectation being that export led sectors are likely to be most adversely affected, with Dublin offices a potential beneficiary.
“While we have not seen many Brexit related relocations or expansions in the Dublin office market to date, the view of some market commentators is that these are likely to be seen from the second quarter of this year.”
The majority of the REIT’s €1.1bn portfolio is in the Dublin office market.
| Balance sheet | 31 Dec 16 | 30 Jun 16 | Change |
|---|---|---|---|
| Total property value | €1,308m | €1,241m | 5.40% |
| EPRA NAV | €1,060m | €1,048m | 1.20% |
| EPRA NAV per share | 153.5 cents | 151.8 cents | 1.10% |
| Property LTV | 21.30% | 20.60% | 0.70% |
| Income statement | 6 mths to 31.12.2016 | 6 mths to 31.12.2015 | Change |
| Gross rental income (excl service charge income) | €28.3m | €28.5m (i) | -0.90% |
| Profit for the period | €43.7m | €67.1m | -34.90% |
| EPRA earnings | €17.8m | €12.6m | 41.50% |
| Earnings per share – basic | 6.4 cents | 10.0 cents | -36.00% |
| EPRA earnings per share | 2.6 cents | 1.9 cents | 36.80% |
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