Green REIT enjoys 137% increase in rental profits

As it delivers interim results, the property firm states that Brexit could benefit Irish real estate...

Green REIT has announced a total return of 17.7% on its property portfolio for the year to June 30th.

Reporting strong interim results, Green REIT posted a net asset value increase of €148.7 million (16.5%). This was driven by EPRA earnings of €24.8 million (a 137% increase) and a positive movement of €120.7m in fair values.

It also enjoyed a massive 137% annual increase in rental profits. 

Contracted annual rent from 21 properties, chiefly high-grade offices in Dublin, climbed 10% to €61.3m.

The commercial property firm's portfolio is now valued at €1.25 billion. 

It is proposing a 188% increase in its dividend to 4.6 cents per share, reflecting a healthy 12-month performance.

Green REIT also took the opportunity to sound an optimist note with regard to Brexit. It believes the UK's exit from the European Union could have a "positive effect" on Irish real estate, due to potential relocations from Britain to Dublin and the country is general, and Ireland beating the UK to future foreign direct investment.

Chief executive Pat Gunne said of the overall performance:

“Our strong results are a reflection of the continued growth in the Irish economy, and the prevailing low interest rate environment which is supportive of the commercial property industry both in Ireland and abroad.

"The 137% growth recorded in rental profits over the previous year allows us to achieve our dividend objectives ahead of schedule."