LONDON (Alliance News) - Irish property investment company Green REIT PLC said on Monday both vacancy levels and gross rental income was up in the half year to December, but reported a lower pretax profit for the half year due to a hit from its retail assets and lower revaluation gains.
Green REIT's pretax profit in the six months was down at EUR67.1 million from EUR74.3 million for the same period the previous year, after the profit from its retail assets almost halved to EUR17.0 million from EUR33.6 million. The net movement on fair value of investment properties on its retail properties was down at EUR11.8 million, from EUR32.0 million the year before.
However, over the six months vacancy was down to 1.0% across the portfolio, from 6.0% at the end of 2014 and the company also saw a 50% increase in year-on-year in its gross rental income from its 100% owned properties, growing to EUR24.2 million from EUR16.1 million.
Green REIT also reported that its total property value was up since June 2015, now coming in at EUR1.03 billion, versus EUR968.0 million.
Its basic net asset value per share stood at EUR1.412 per share, up 6.5% from EUR1.348 per share last year, which translated as EUR1.407 per share, up from EUR1.321 when diluted.
The company did not declare a dividend for the period.
Green REIT added rental growth is now the more important driver of performance as opposed to yield contraction, which has dominated to date in the recovery cycle. It said the high returns in 2014 and 2015 are "likely to revert to more sustainable levels for 2016 and beyond".
"The execution of our investment strategy continues to deliver shareholder returns. The company has secure income, prime assets, a strong balance sheet and a proven management team," said Gary Kennedy, chairman of Green REIT.
"The board is confident that the continued implementation of our asset management and development strategy, against the favourable backdrop of a strong commercial property market and supportive Irish macroeconomic fundamentals, will deliver further shareholder returns in line with our target. We look forward to the year ahead with confidence," Kennedy added.
Green REIT shares were untraded on Monday, having last traded at EUR1.34.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.