GRN.L Regulatory News (GRN)

PRELIMINARY RESULTS FOR THE YEAR TO 30 JUNE 2016

ASSET MANAGEMENT FOCUS DELIVERS STRENGTHENED LONG TERM INCOME STREAM AND STRONG PERFORMANCE ACROSS ALL METRICS

NAV increase 16.5%; EPRA NAV per Share €1.52; Dividend up 188% to 4.6 cents per share

Dublin, 12 September, 2016 - Green REIT Plc, ("Green REIT" or the "Company"), the Irish property investment company, today announces its results for the year ended 30 June 2016.

The portfolio, which is dominated by high grade Dublin offices, is now valued at €1.24 billion, with the Company having recorded a strong performance across all key operational metrics during the period. The strategic focus will continue to be on driving risk adjusted returns for shareholders, through asset management, our development pipeline and increasing dividends, building on the total return of 17.7% delivered in the year to 30 June 2016. 

KEY FINANCIALS HIGHLIGHTS

§ 14.9% increase in EPRA NAV to €1.52 per share, underpinning a 17.7% total return in the period

§ Strong capital and income growth, with EPRA Earnings now contributing 17% of total profit

§ 10% increase in contracted annual rent to €61.3 million from 21 properties

§ EPRA EPS increase of 131% to 3.7 cents per share; Basic EPS of 21.5 cents per share

§ Strong EPRA Earnings of €24.8 million, up 137% on prior year; Net profit of €145.5 million for the year

§ Total gearing remains low at 19.2%, with cash and undrawn facilities at year end of €121.4 million providing further capital for growth and development

§ 188% increase in proposed dividend to 4.6 cents per share reflecting strong performance in the period

STRATEGIC & OPERATIONAL HIGHLIGHTS

§ Asset Management - delivering increased rental profit and more secure income over the longer term

- Lease renegotiations completed/agreed on €14 million, or 23% of total annual contracted rent, including leases with Vodafone Ireland and Pioneer Investments

- €9.5 million of new annual rent secured through new lettings, the largest of which is to Fidelity International in George's Quay

- 56% increase in total WAULT, from 5 years at 30 June 2015 to 7.8 years currently

- Continued low EPRA vacancy of 2% at 30 June 2016 (30 June 2015: 2%)

§ Development - substantial value-adding potential from pipeline

- Solid progress at our four office sites, all on target for completion on schedule

- Two industrial units completed on schedule and on budget at Horizon Logistics Park

- Terms agreed for the single letting of 100% of 32 Molesworth Street on completion

- Good momentum at Horizon Logistics Park, with speculative development of an additional unit to commence in October 2016

- 6.1 acres at Central Park and over 100 acres at Horizon Logistics Park available for potential future development

§ Acquisitions and Disposals - supportive of investment strategy, strengthening the portfolio

- Acquisitions: Completed the acquisition of full control of Central Park in January 2016 and of One Albert Quay in Cork. Payments of €41 million made on One Albert Quay to 30 June 2016, with a further €10.4 million to be paid on or before March 2017

- Disposals: four properties from the 'Glas' collection sold in H2, at a combined sale price of €74.7 million, versus a combined purchase price of €42.6 million, generating a profit before disposal costs of €32.1 million, or 75.3 % on cost

§ Performance Fee of €13.9 million to be settled by issuing 9.5 million ordinary shares to the Investment Manager, in line with the total return threshold being exceeded in the year to 30 June 2016

PORTFOLIO OVERVIEW:

§ Portfolio now comprises 20 assets with a total floor area of 226,000 square metres (2.43 million square feet) (30 June 2015: 208,600 square metres (2.24 million square feet))

§ Significant Dublin focus (93% by portfolio value) and dominated by high grade Dublin office assets (73%)

§ Investment initial yield of 5.2%¹ on 30 June 2016 valuations (5.8%¹ at 30 June 2015 on 30 June 2015 valuations)

§ 98.3% EPRA occupancy rate (30 June 2015: 98.1%)

§ Value by sector: 78% offices, 15% retail, 2% industrial and 5% other

§ Yields:

¹ Calculated as contracted rent at 30 June 2015/16 over the June 2015/16 valuation plus notional purchaser's costs

§ Portfolio is 5% reversionary at 30 June 2016 (€61.3 million annual contracted rent versus €64.7 million annual ERV)

§ Diversified tenant base, with 41% of contracted rent from Financial Services, 23% from TMT and 18% from retail

§ Top 10 tenants account for 51% of contracted rent, with our largest tenant accounting for 12% of the total

Gary Kennedy, Chairman of Green REIT plc, commented: "The Board continues to focus on driving risk adjusted returns for shareholders through our clear and focused strategy. This has been another successful year for the Company, with dividend plans coming to fruition and our development projects on plan. We are confident in our business and our market and look forward to delivering shareholder returns in line with our target in the year ahead."

Pat Gunne, Chief Executive of Green Property REIT Ventures Limited, added: "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"

ENDS

Contacts

Green Property REIT Ventures (Investment Manager to the Company)

Niall O'Buachalla, COO

+353 (0) 1 2418400

FTI Consulting (IR and PR to the Company)

Dublin London

+353 (0) 1 6633686 +44 (0) 20 7831 3113

Jonathan Neilan Giles Barrie

Melanie Farrell Claire Turvey

greenreit@fticonsulting.com 

About Green REIT plc

Green REIT plc is an Irish Real Estate Investment Trust ("REIT") and is listed on the Irish and London Stock Exchanges. The Company was the first REIT established in Ireland following the introduction of REIT legislation by the Irish Government. The Company's stated strategy is to create a property portfolio consisting primarily of commercial property in Ireland to deliver income and capital growth through opportunistic investments, active property management and prudent use of debt finance. Please visit www.greenreitplc.com.

Note on forward-looking information

This Announcement contains forward-looking statements, which are subject to risks and uncertainties because they relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company or the industry in which it operates, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements referred to in this paragraph speak only as at the date of this Announcement. The Company will not undertake any obligation to release publicly any revision or updates to these forward-looking statements to reflect future events, circumstances, unanticipated events, new information or otherwise except as required by law or by any appropriate regulatory authority.

Chairman's Report

DELIVERING ON OUR VISION

I am happy to communicate another strong set of results for the Company for the year to 30 June 2016.

During the year we further strengthened our portfolio through two strategic acquisitions, firstly the acquisition of full control of Central Park, increasing the Company's ownership from 50 to 100 per cent, and secondly the acquisition of One Albert Quay, Cork's flagship office building. We also disposed of four non-core properties in the period, acquired early in the recovery cycle, generating a profit on purchase price of 75 per cent.

The successful implementation of asset management initiatives during the year has strengthened our income, making it more secure and resulting in longer income streams for the Company. Our development pipeline will further enhance this income, with the Company completing two industrial units during the year and with the completion of two office buildings, at Central Park and 32 Molesworth Street, scheduled for December 2016. Construction of One Molesworth Street in Dublin's CBD is progressing well and on target, while construction of 4-5 Harcourt Road has recently commenced.

The total return delivered to shareholders in the year to 30 June 2016 was 17.7%. Our main focus now in the year ahead is on continuing to deliver risk adjusted shareholder returns through the completion and letting of our development projects and increasing dividends to shareholders, while at the same time monitoring acquisition opportunities that fit with our investment strategy.

Ireland - Positive Macroeconomic Indicators

The Irish economy continues to experience strong growth. Ireland was the fastest growing economy in the EU in 2014 and 2015, and growth is expected to continue through 2016 and 2017 at levels well above the EU average. While export growth was the main driver of recent economic growth, growth in the domestic economy is now a greater contributor. The country's unemployment rate of 8.3 per cent is now below the EU average, having peaked at 15.2 per cent in early 2012, while the country's debt to GDP ratio continues to fall and is now below the EU average, with a minor government deficit expected for 2016 and a small surplus forecast for 2017. Long term interest rates remain low, while the Irish government 10 year bond rate stood at 0.50% at 30 June 2016, both of which are supportive of commercial property yields.

Asset Management

The year to 30 June 2016 was a busy one on the asset management front. The highlights of the period were the renegotiation of existing leases with Vodafone Ireland, our largest tenant, and Pioneer Investments, our fourth largest tenant, which along with other asset management initiatives have increased our rent weighted average unexpired lease term ('WAULT') by 2.8 years from 5 years at 30 June 2015 to 7.8 years at 30 June 2016. We also entered into new leases with Fidelity International with a term certain of 12 years. Our contracted annual rent is now €61.3 million, an increase of 10% on the €55.7 million of contracted annual rent at 30 June 2015.

Development

One of the key tenets of our investment strategy is to create value for shareholders through a prudent level of property development. We acquired five properties with development potential at early points in the Dublin real estate development cycle, with a view to obtaining the necessary planning consents and delivering new buildings at the right time and into what is a constrained Dublin office market with low vacancy rates and manageable future supply.

Our development programme has ramped up substantially in the period since 1 July 2015. We have started on site at 32 Molesworth Street, One Molesworth Street and 4-5 Harcourt Road, all office developments in Dublin City Centre. We started on site at Block H in Central Park in April 2015 and completion is on target for December 2016. We also completed our first two industrial units at Horizon Logistics Park during the period. We look forward to completing and letting these high quality buildings and expect that they will be a significant driver of shareholder returns.

Disciplined Balance Sheet Management

Our intended total gearing level continues to be 25 per cent. Our total gearing level has increased from 9.5 per cent at 30 June 2015 to 19.2 per cent at 30 June 2016, due mainly to debt funding of the acquisition of full control of Central Park and payments made in respect of One Albert Quay in Cork, which were offset by debt reduction from the application of property sale proceeds. We have further capital to deploy to fund our development projects and the balance of the One Albert Quay payments, which are more than adequately covered between the Company's cash resources and our available debt facilities, while remaining within our intended gearing level.

Financial Results and Position

Summary Financial Information

(i) Includes the Company's 50% interest in Central Park property at 30 June 2015

Dividends

The Board expects to declare a dividend in respect of the year to 30 June 2016 of 4.6 cent per share, or a total dividend payout of €31.4 million, to be paid in the fourth quarter of 2016. This represents an increase in the annual dividend per share by 188 per cent on the dividend paid for the year to 30 June 2015, delivering on our promise to pay increasing dividends to shareholders.

The dividend expected to be declared is analysed as follows:

Net Asset Value ('NAV')

The key drivers of the increase in the Company's NAV by €148.7 million, or by 16.5 per cent, between 1 July 2015 and 30 June 2016, were EPRA Earnings for the period of €24.8 million (30 June 2015: €10.5 million) and a positive movement in fair values (including JV property) by €120.7 million (30 June 2015: €146.2 million).

The Investment Manager

The Board continues to work well with the Investment Manager, Green Property REIT Ventures, led by Pat Gunne. The quality of the acquisitions, the asset management successes achieved and the substantial progress made with the Company's development projects in the period are testimony to the skills and experience of the management team.

The Board has approved the payment of a Performance Fee of €13.9 million (30 June 2015: €20.9 million) to the Investment Manager, in line both with the formula set out in the Investment Manager Agreement entered into in July 2013 and the total return threshold being exceeded in the year to 30 June 2016. The Performance Fee will be settled by the issuance of 9,482,718 new ordinary shares to the Investment Manager by the Company. These shares will be subject to the lock-in provisions set out in the Investment Manager Agreement, which prohibit the sale of these shares for up to up to 42 months from their issue date.

Outlook

Our clear strategic focus has continued to deliver strong shareholder returns in the year to 30 June 2016.

We have continued to grow the business through opportunistic and disciplined property acquisitions, which along with the disposals made in the period have strengthened the portfolio. Our income is stronger and our income streams are longer, as a result of active asset management. We look forward to the completion of our office and industrial developments and the contribution to shareholder returns from their anticipated value uplift and additional rental income. We remain conservatively leveraged with a strong balance sheet and well positioned to take advantage of opportunities that may arise.

The Board recognises that a continuation of the current favourable macroeconomic backdrop is an important dynamic in the context of delivering on our objectives, and that there are external factors which may impact on the Company's performance, such as economic and political uncertainty in Ireland and internationally.

We are vigilant in our risk management focus and continue to monitor the impact of the result of the UK's decision to leave the EU, both for opportunities for the Company and impacts on the wider Irish economy. We believe however that it is too early to tell what impact this may have on the Irish commercial real estate sector.

We remain confident in our business and our market and, having delivered above and beyond the targets set at IPO three years ago, we are confident that we have the right portfolio, business model, gearing profile, management expertise and financial capacity to continue to drive shareholder returns in the years ahead.

Gary Kennedy

Chairman

11 September 2016

Investment Manager's Review

Asset Management Successes, Capital Recycling and Good Progress with Developments

The year to 30 June 2016 was a very active one for us as the Company's Investment Manager. Implementation of asset management initiatives in the period has been very successful, enhancing the quality and security of our income. 60 per cent of the contracted income in the portfolio is on an upwards only review basis, with an overall weighted average unexpired lease term (WAULT) of 7.8 years at 30 June 2016, up by 56 per cent on 5 years at 30 June 2015. We also added €9.5 million of new contracted annual rent through new leases during the year, taking our total contracted annual rent to €61.3 million at 30 June 2016.

In addition, our estate is now 98% occupied, which highlights the security of income within the portfolio, and our active approach to managing any vacant space which becomes available. The quality of our assets is key to ensuring our void rates remain significantly below the wider market.

Our development projects are progressing in accordance with the plan we presented at the outset of our programme, and we are excited by the prospects that these buildings have for delivering strong returns to shareholders when completed and with tenancies secured. Our latest projections show a return on capital of 39% against the original underwrite target of 28%, so far exceeding our expectations, against a backdrop of very positive market conditions.

1. ACQUISITIONS, DISPOSALS & PORTFOLIO SUMMARY

Portfolio further strengthened through two value adding acquisitions and €75 million of disposals

Central Park - acquisition of full control

In January 2016 the Company acquired full control of Central Park, widely acknowledged as Dublin's best office park, increasing the Company's ownership from 50 per cent to 100 per cent. This acquisition added €8.9 million to annual contracted rent, with a property price of €155 million reflecting a capital value of €4,600 per square meter (€428 per square foot) of built space and an equivalent yield of 5.6%. The Company also now has full control of the circa 46,500 square meters (500,000 square feet) of planning consents for future expansion of the office park. The value of 50 per cent of Central Park at 30 June 2016 was €172.9 million, reflecting an 11.5 per cent uplift on cost.

One Albert Quay, Cork - acquisition completed

In February 2016 we completed the acquisition of One Albert Quay in Cork, a newly built office block of 15,300 square meters (164,334 square feet). Since February 2016 we have made payments to the vendor totalling €41 million, as occupational leases have become operative. The building is now 81% let by area, with in-place annual contracted rent on the building of €3.2 million, compared to a total ERV of €4.4 million at 30 June 2016. The building houses the global headquarters of Tyco, together with other high quality tenants including Arup Engineering, PwC, Malwarebytes, Ardmore Shipping, Investec and Starbucks. We expect the remaining vacant space to be let over the coming months and will then make further estimated payments of €10.4 million on or before March 2017. The estimated total property price of €51.4 million compares to a valuation of €63.8 million at 30 June 2016, reflecting a 24 per cent uplift.

Along with JCD (the developer of the building) we are proud to report that One Albert Quay was awarded Commercial Project of the Year 2016 at the annual Irish Construction Awards, in recognition of its quality, environmental efficiency and technological advancement.

Disposals - 75% realised profit on cost

We outlined in February at our interim results our intention to raise €100 million from disposals. On 3 February 2016 we confirmed that we had appointed JLL to sell a portfolio of six of the Company's properties by private treaty on our behalf. In the period to 30 June 2016 four of these properties were sold, individually, for a combined value of €74.7 million. This compares to a combined cost of €42.6 million, reflecting a total profit on cost of €32.1 million or 75%. We are happy to have realised such a healthy profit from the completed sales, which we see as effective recycling of capital and a strengthening of our portfolio.

2. PORTFOLIO VALUATION

The valuation of the portfolio rose to €1.24 billion at 30 June 2016, which reflects a 13% increase on assets held throughout the period. Acquisitions in the period increased in value by €30 million between their acquisition dates and 30 June 2016, reflecting a combined 15% increase on property cost.

On a sectoral basis, the industrial assets saw a 44% increase in value, partly as a result of the completion of an industrial unit which had been under construction during the year and an increase in the value of the developable land. The city centre office portfolio saw a 13% increase in value, suburban offices saw a 14.5% increase and the retail assets held saw an 11% increase in value in the year.

In the period from June 2015 to June 2016 we saw the portfolio equivalent yield reduce by 50 basis points to 5%. This is partly as a result of extending the WAULT from 5 years to 7.8 years and also due to the various disposals and acquisitions in the period. The portfolio has gone from 72% prime to 93%.

Looking at the overall return from the portfolio, the movement in equivalent yield is contributing approximately 50% to returns with income and rental growth accounting for the remaining 50%. The rental growth component is pulled back somewhat by rent free periods given on new lettings and lease renegotiations, which will flow through in the coming months.

PORTFOLIO VALUATION ANALYSIS

Note - Acquisitions in the Period:

3. ASSET MANAGEMENT

The year to 30 June 2016 was one of heightened activity on the asset management front and our busiest period to date. We continue to focus on growing our rental income and enhancing the security of that income through driving the portfolio WAULT higher.

Highlights in the period include the following:

Lease Re-gears

We completed or agreed lease renegotiations on €14 million, or 23 per cent of our current contracted annual rent, significantly increasing the WAULT on this income by 7.4 years. This includes our single largest tenant, Vodafone, and our fourth largest tenant, Pioneer Investment Management.

Summary details are as follows:

* Total annual contracted rent at 30 June 2016

New Lettings

We secured new lettings with €9.5 million per annum of additional contracted rent over 25,111 square metres (270,300 square feet), which represents 15.5 per cent of the group's current contracted annual rent. The WAULT on these new leases is 10 years.

The largest of these is with Fidelity International at George's Quay. The Fidelity leases extend to 5,852 square metres (68,000 square feet) in total, which Fidelity will fully occupy by late 2016 when Twitter and Invesco vacate the space they currently occupy. The annual contracted rent from Fidelity is €3.7 million, on 25 year leases at a rent of €527 per square metre (€49 per square foot), with a break clause in the tenant's favour on the twelfth anniversary of the leases.

These new lettings were 8 per cent ahead of 30 June 2015 rental values (excluding short term lettings).

WAULT

§ In addition to the initiatives above, Allied Irish Banks did not exercise their lease break on 2 Burlington Road in the period, which added 10 years to the term certain of that €4.2 million of annual rent;

§ The combined effect on WAULT of the asset management initiatives completed in the period is to increase our overall WAULT by 56 per cent from 5 years at 30 June 2015 to 7.8 years at 30 June 2016;

§ As at 30 June 2015, 58 per cent of our contracted annual rent had a break option or lease expiry in the years 2016 to 2018. This has now been reduced to 17 per cent as at 30 June 2016;

§ 83 per cent of our contracted annual rent is now subject to a break or expiry beyond 2019, which has increased from 42 per cent at 30 June 2015;

Vacancy

As at 30 June 2016 there was 1.7 per cent vacancy across the portfolio by ERV (30 June 2015: 1.9%). Of the €1.2 million of annual ERV across our vacant space, €0.9 million of this is currently under offer and in legals.

4. DEVELOPMENT PROJECTS

We continue to report good progress with our development projects, with two industrial units at Horizon Logistics Park completed in the period and with completion on target at Block H Central Park and 32 Molesworth Street for December of this year. One Molesworth Street is also progressing well and we recently commenced the demolition and redevelopment of 4-5 Harcourt Road.

A brief summary of these schemes is as follows:

Development activity since 30 June 2016:

(i) 32 Molesworth Street, Dublin 2

Terms have been agreed and legal discussions are now underway with a potential occupier to take a lease on 32 Molesworth Street, which has a targeted completion date of December 2016. The proposed letting covers the entire building of 3,000 square meters (32,000 square feet) and the proposed annual rent compares favourably with the original underwrite assumptions. This letting is subject to leases being signed and completion of the building.

(ii) 4-5 Harcourt Road

We are now on site and have commenced demolition at 4-5 Harcourt Road in Dublin's CBD. The planning permission we secured represents an increase of close to 50% on the original floor area. In its place we will be developing a modern office building of 4,500 square meters (48,200 square feet), with completion due in early 2018.

(iii) Horizon Logistics Park, Dublin Airport:

Pre-letting to Kuehne+Nagel

An agreement to lease has been signed with Kuehne+Nagel Limited for a new unit of 7,400 square meters (80,000 square feet) which we will build for them, with Kuehne+Nagel having options on two additional units of 3,700 square meters (40,000 square feet) each. Kuehne+Nagel are an existing tenant in the logistics park and will be vacating their unit as part of this transaction. The construction of the new units is subject to planning consent and discussions are now underway with the planning authority with a view to submitting an application by the end of October.

Kuehne+Nagel's expansion plans show their confidence in Horizon Logistics Park as their preferred location to conduct this very substantial corporate expansion. It also confirms the opportunity around logistics in the Dublin market, in addition to the wider prospects for the Irish economy. This, combined with a sale and lease on the two units which we developed, bodes well for our expansion strategy at Horizon Logistics Park.

Letting of unit B1

Heads of terms have been agreed with a global logistics company for unit B1, which comprises 4,100 square meters (44,000 square feet). This unit was built speculatively and was completed in May 2016.

Commencement of construction of unit B2

Construction will commence shortly on this unit, which comprises 3,066 square meters (33,000 square feet) and will be built speculatively. Given the momentum generated by the sale of unit D1, the pre-letting to Kuehne+Nagel and that heads of terms have been agreed on unit B1, we feel that it is important to the success of the park to have new space available for prospective tenants, in a sector where there are strong levels of take-up and very limited supply of modern high bay warehousing.

5. FINANCIAL REVIEW

3 Year Summary

NAV Growth

NAV increased from €899.3 million at 30 June 2015 to €1,048.0 million, or from 134.8 cent per share to 153.9 cent per share (both basic), an increase in NAV per share of 14.2% year on year. The main drivers of the growth in basic NAV per share are analysed as follows, in cents per share:

Please see Appendix 1 for further EPRA Performance Measures.

Gearing

As at 30 June 2016 our total gearing was 19.2% (30 June 2015: 9.5%), with total bank debt increasing from €95.7m at 30 June 2015 to €255.4 million at 30 June 2016. This level of gearing is within the range guided to our shareholders over the previous reporting periods.

The increase in total bank debt by €159.7 million in the year was as a result of the debt financing of the Company's acquisition of PIMCO's 50% interest in Central Park, payments made in acquiring One Albert Quay in Cork and debt funding of development costs. This was offset by debt reductions from the application of property sales proceeds against the Barclays revolving credit facility.

Debt Profile

The Company has two loan facilities in place, one with Bank of Ireland secured on the Central Park assets, and a revolving credit facility with Barclays Bank Ireland plc with floating security over the Company's other assets. During the year the Central Park facility was renegotiated with Bank of Ireland, the key changes being a reduction in the loan margin from 3% to 2% per annum, thereby saving the Company €1.5 million annually, and an extension of the maturity date from June 2018 to June 2021, with options to extend by two further years.

As a result of the renegotiation of the Central Park facility and a reduction in the 3 month Euribor rate, the Company's all-in annual debt cost has reduced from 2.8% at 30 June 2015 to 1.9% at 30 June 2016, with an increase in total debt maturity from 3 to 4 years.

Post 30 June 2016, additional hedging was put in place in the form of forward starting interest rate swaps covering the period from October 2018 to October 2022, at a blended fixed rate of 0.074% per annum on €200 million. These swaps give the Company certainty around its maximum interest cost on €200 million of its debt for the period October 2018 to October 2022, at what we believe is a very keen fixed rate.

A summary profile of the Company's debt at 30 June 2016 is as follows:

Earnings per Share ('EPS')

EPRA EPS, which measures EPS on rental profit only, increased by 2.1 cents per share or by 131% from 1.6 cents to 3.7 cents. In the year to 30 June 2015 EPRA EPS accounted for 7 per cent of total EPS of 23.5 cents, while it accounted for 17 per cent of total EPS of 21.5 cents in the year to 30 June 2016.

This is a reflection firstly of our increased rental income in the current year, which is 43 per cent greater than in 2015, and secondly of the anticipated moderation in capital value growth as the Irish commercial real estate market moved from 'opportunistic' mode to a mode of more sustainable and moderate growth. This is illustrated by the total returns from Irish commercial real estate as measured by IPD/MSCI, which decreased from 25 per cent in calendar 2015 to 19.5 per cent in the year to 30 June 2016.

A reconciliation of total profit and EPS to EPRA Profit and EPRA EPS is as follows:

Rental Income

Gross and net rental income is analysed as follows:

Gross rental income (excluding service charge income) of €56.4m in 2016 was 43% higher than 2015. It should be noted that the analysis above for 2016 includes rental income from Central Park from 8 January 2016 (the date the Company acquired full control) to 30 June 2016, whereas in 2015 there was no Central Park rental income included, as Central Park was separately accounted for on an equity basis during the period when the Company controlled only 50% of it.

An analysis of total gross rental income (excluding service charge income) with the Company's 50% share of the Central Park rent shown proportionately for the year to 30 June 2015 and for the period 1 July 2015 to 8 January 2016 is as follows:

The main drivers of the increase in rental income year-on-year were as follows:

§ The acquisition of PIMCO's 50% interests in Central Park on 8 January 2016

§ The impact of the Sapphire Portfolio being owned throughout the year to 30 June 2016 but for only three quarters of the year to 30 June 2015 (George's Quay, George's Court and Westend Retail Park)

§ Surrender premia paid by departing tenants of €2.9 million

§ The impact of the spreading of lease incentives granted to tenants, which were €6.2 million in 2016 versus €0.5m in 2015. These arise mainly from the granting of new leases and the renegotiation of existing leases where rent free periods were granted. Under accounting rules we are required to smooth the effect of these incentives over the term certain of the leases.

§ There was a slight reduction in rents as a result of the redevelopment of One Molesworth Street and 4-5 Harcourt Road, totalling €1.1 million, as vacant possession of the buildings was required.

With regard to Property Outgoings, which increased from €1.6 million to €3.9 million in the year to 30 June 2016 as per the analysis above, the main driver of the increase was agents and legal fees on new lettings and on lease renegotiations, which totalled €1.4 million, with vacant building costs of €0.8 million, repairs of €0.4 million, valuation fees of €0.4 million and other costs of €0.9 million.

For the year ahead we would expect agents and legal fees on our built space to be lower given the significant level of lease events dealt with this year, as with vacant building costs on the basis of completing the transactions which are currently in legals. As our development properties complete and are leased we can expect to incur additional agents and legal fees.

Administrative Expenses

Administrative expenses increased by €0.6 million from €2.1 million in the year to 30 June 2015 to €2.7 million in the year to 30 June 2016. The main cost items within this caption are directors' fees, audit fees, tax compliance and advice fees, corporate insurances, depositary and other regulatory costs.

Within the €2.7 million total cost for the year to 30 June 2016 are €0.9 million of one-off business combination costs relating to the stamp duty, legal and other costs incurred in the acquisition of PIMCO's 50% interest in Central Park in January 2016. These costs are required to be expensed in the period in which they are incurred under accounting rules. Stripping out these one-off costs the total administrative costs for the year were €1.8 million compared to €2.1 million in the year to 30 June 2015.

Investment Manager Fees

The base fee charged in the year was €9.7 million (2015: €8.1 million), with the increase in the fee reflecting the increased NAV of the Company on which the base fee is calculated. In the year from 30 June 2015 to 30 June 2016 NAV increased from €899.3 million to €1,048.0 million. The base fee is calculated and paid calendar quarterly in cash on the NAV at quarter end, on the basis of one per cent per annum of NAV. The details of the performance fee provision for the year of €13.9 million (2015: €21 million) are set out in further detail in note 19 of these results.

6. PRIORITIES FOR THE YEAR AHEAD

Our focus and priority for the year ahead is consistent with our previous messaging to shareholders which is all about maximising risk adjusted returns, and ensuring the portfolio is positioned to take advantage of the strong Irish economy and favourable real estate macro dynamics, particularly around falling interest rates and central bank policy.

Key for us is the completion and letting of our development projects in Dublin which will then allow us to reassess our risk positioning within the portfolio for the next phase, and at that juncture decide whether or not we pursue further development opportunities within the market. This decision will largely be dependent upon the supply and demand dynamics of the occupational market at that juncture, as well as the Irish economy and where it fits within the international GDP environment.

We are very happy with the quality of our real estate, and the security of income from our very strong tenant base, a result of our very successful active management campaign over the past 18 months in particular.

We are also pleased with the strong dividend proposed, and this will remain a key focus for us by continuing to drive strong rental profits through the portfolio.

The Irish economy is performing well on all key economic indicators, with growth well ahead of the EU average in the last three years, driven by both domestic demand and by FDI. The unemployment rate has almost halved since its peak and the Irish workforce is in excess of two million people for the first time since 2008.

The impact of the result of the UK referendum on EU membership ('Brexit') on the Irish economy and its consequences on Irish commercial real estate, whether positive or negative, is still unclear. This is likely to be the case in our view until Article 50 is triggered and negotiations take their course. There is speculation that Brexit could adversely impact on Irish economic growth, given for example the proportion of our exports directed at the UK. Brexit could however have a positive effect on Irish real estate, with potential relocations by UK tenants to Dublin and Ireland and increased FDI into Ireland rather than the UK. We continue to monitor the implications of Brexit closely for opportunities, and believe that our development pipeline and the quality of our existing properties puts us in a strong position to capitalise on opportunities that may arise.

Equally we will continue to monitor the taxation debate around Apple and other FDI clients operating in the Irish marketplace. We expect that Ireland will continue to compete successfully in the international arena for existing and future overseas corporates looking to use Ireland as their EU base for operations.

Demand in the occupational market has been resilient, with concerns about future Dublin office over-supply reducing, assuming no significant pull back in take up from FDI tenants in particular. This is an area that we devote a lot of time in understanding in order to ensure we can read the ever-changing dynamics of the occupational market. With regard to the investment market, we are seeing an increase in core capital flow to Ireland for prime assets, and with the continued decline in the risk free rate Irish commercial property yields still look attractive on a relative basis despite being close to previous cycle peaks.

We remain confident that our clear and focused strategy will continue to drive returns for our shareholders

Stephen Vernon Pat Gunne

Executive Chairman Chief Executive

Green Property REIT Ventures Limited Green Property REIT Ventures Limited

11 September 2016

Our Market

Economic Overview

Strong Economic Growth

The Irish economy continues to show strong and sustained growth, as it did in 2014 and 2015. The forecast is for 4.4% growth in 2016 and 3.1% in 2017, which means at this point, despite the uncertainty created by the "Brexit" referendum result in the UK, Ireland may well continue to out-perform relative to its European peers in the coming years. The composite PMI for August 2016 was 56.9, the strongest across developed economies surveyed.

Employment

The unemployment rate stood at 8.3% at the end of July, down from 8.6% in January 2016 or 9.5% at the end of July 2015. This compares to 4.9% in the US and the UK and 10.1% in the Euro area. The total number of people employed in Ireland is now above 2 million, compared to a high of 2.2 million in Q1 of 2008 and a low of 1.8 million in Q3 2012. There has been a shift from net emigration during the financial crisis to net immigration today. This is positive for the labour market as it should alleviate shortages in certain sectors and keep employment balanced, and thereby reduce the potential for wage inflation which has to date been muted, with average earnings up 1.1% in the year to Q1 2016, reflecting spare capacity in the labour market.

Foreign Direct Investment ('FDI')

In the period 2009 to 2014 Ireland was ranked 5th highest for FDI inflows in Europe and there is no doubt the level of investment in FDI in recent years has been vital to economic growth, employment levels, tax receipts and demand for office space. The level of FDI flows remains strong, with 2015 being a record year for FDI, and the Industrial Development Authority (IDA), which is charged with attracting and managing FDI in Ireland, sees a strong pipeline of further investment in the near term (they do not comment beyond the near term). Multinational enterprises today comprise over 10% of private sector employment in Ireland. So far in 2016 the IDA's job announcements have outpaced previous years. The leading FDI investments in 2016 were in the IT sector (Oracle, First Data, Facebook, Hubspot and Amazon) and the pharma and medical devices sector (Shire, Search Optics, OPKO, Eurofins and Lancaster).

Public finances continue to improve

Overall tax receipts were up 9.2% year on year for the first half of 2016. We have seen a continued approach by the Irish Government to be disciplined in spending, so while national budgets are now marginally expansionary, public finances continue to improve. In Q1 2016 there was a current account surplus of €9 billion. The government deficit at the end of 2015 was 1.5%, which is forecast to reduce to 0.3% by the end of 2016.

In addition, the national debt to GDP ratio for 2015 was 93.8% and has reduced further with debt reduction and with growth in GDP. Reduction in our national debt has had a positive impact on the rating of the country and our ability to borrow on the international markets. Bond yields continue to decline, with the 10 year rate currently standing at 0.5% at 30 June 2016.

Strong contribution from the domestic economy

With improving employment numbers and confidence re-emerging, domestic demand continues to improve, currently growing at 6% (quarter 1 2016). Consumer spending growth was 3.5% in 2015 and the forecast for 2016 is 3.7%. There is limited evidence of price inflation, which was +0.4% per annum as at June 2016.

The 2016 census in the Republic of Ireland confirmed that the population in Ireland grew by 3.7% in the period 2011 to 2016 and now stands at 4.67 million. Not surprisingly, the main increases have been in the main urban centres and counties adjacent to Dublin. The population of Dublin increased by 5.7% to 1.35 million and greater Dublin increased by 5.6% to 1.9 million in the five year period.

UK referendum result

The decision of voters in the UK to leave the European Union has created uncertainty across markets globally. It is too early to tell the extent of the impact of this decision in either the short or longer term, but it is clear that it will have an impact on the Irish economy.

On the positive side, there may be further FDI growth and relocation of business from the UK to Ireland, particularly because Ireland will be the only English speaking member of the EU post the UK's departure. This may result in job creation and increased demand for office and residential accommodation. In addition, there may be further demand from international capital for Irish real estate.

On the negative side, Ireland and the UK are strong trading partners and we are not likely to have clarity on trading arrangements between both countries for some time. At present 18% of our total exports are to the UK. The food, manufacturing, tourism and transport sectors are likely to be affected most, depending on trade arrangements agreed between the UK and the EU. A weak sterling will put pressure on the retail sector, particularly in towns close to the border with Northern Ireland, and more importantly as price takers Irish exporters price in sterling and therefore their profitability will be affected unless they can adjust profit margins to compensate for the currency effect.

Capital Markets

Over recent years bank de-leveraging has resulted in strong volumes of investment activity including asset sales of €4.6 billion in 2014 and €3.5 billion in 2015. As the banks and NAMA clear their inventory, volumes of loan books and asset sales from this source have declined. The first half of 2016 has seen a number of large property transactions (over €100 million) that have boosted transaction levels. Total spend in the period has reached €2.95 billion, which compares to €1.7 billion in the same period of 2015.

The top 10 deals in the first half of 2016 accounted for 63% of the total activity in the period and are summarised below:

Due to two large shopping centre deals, the retail sector has dominated demand, accounting for 49% of transactions, followed by offices at 36%, mixed use at 9% and the remaining 6% divided split between residential, industrial, hotel and other. The USA continue to be the largest buyer group accounting for 34.3% of transactions, followed by domestic buyers (including Irish REITS) at 30%, European investors at 18.6%, UK buyers at 12.5%, and the remainder accounting for 4.6%. The profile of the buyer group has very much transitioned from private equity to long term core buyers, which is typical when the cycle moves from opportunistic to stable.

Property Returns

The MSCI index recorded total returns for H1 2016 for Ireland of 6.3% across all property sectors, which compares to 2.2% in the UK. On an annualised basis to June 2016 this reflects 19.5% compared to 25% in the calendar year 2015 and 40% in 2014. These moderating returns reflect where we are in the current cycle and demonstrate that we have now moved from an opportunistic phase (post the financial crisis) to a stabilised phase.

Over the longer term, average annual total returns per IPD/MSCI have been as follows:

Of the total return in H1 2016, capital growth accounts for 3.9% and income return for 2.3%. By sector the top performer with total returns of 10.8% was industrial, followed by offices at 6.1% and retail at 6.2%. The MSCI all-property equivalent yield remains stable at 5.8% (it was also 5.8% at the end of 2015).

Over the last six months, prime yields have remained stable; prime offices remain at 4.50-4.65% (depending on property commentator), prime high street at 3.25% and prime retail warehousing at 5%. Prime industrial is currently 5.75%, and this is the only sector where property commentators are anticipating further yield compression.

Occupier Markets

Dublin Offices

Total take-up in H1 2016 in Greater Dublin reached 90,000 square meters (965,000 square feet). On an annualised basis this would equate to 177,000 square meters (1.9 million square feet) in gross terms. In the period 2006 to 2016 the overall annual take-up averaged 167,000 square meters (1.8 million square feet), so while current take-up levels are down on the same period in 2015 of 111,500 square meters (1.2 million square feet), they are still running ahead of the long-run average. In addition, we understand that there are a number of potential lettings in due diligence so the anticipation is for a strong second half of the year.

The city centre, as expected, accounted for the bulk of activity with 84% of the take-up in the period, with 58% of this in the Dublin 2/4 postcode. Outside the CBD, the south suburbs accounted for 69% of take-up.

Gross take-up by sector was as follows:

Dublin City Centre

Dublin South Suburbs

There has been a steady decline in the greater Dublin vacancy rate which now stands at 8.3%, down from 8.7% in December 2015 and 9% at June 2015. The Dublin 2/4 vacancy rate currently stands at 6.1% (June 2015: 7.1%) and the grade A vacancy rate is 2.4% (June 2015: 1.8%). The vacancy rate in the south suburbs is at 10.4%, compared to 12% in Q2 2015. Grade A vacancy rates in the south suburbs are now being measured, and as at Q2 2015 they stand at 6.8%.

There is currently 409,000 square meters (4.4 million square feet) of office development under construction in the city centre in 30 schemes, of which 66% are speculative. Eleven of these developments are due to complete during the course of 2016, providing approximately 121,000 square meters (1.3 million square feet) of new build/refurbishment. In addition, 16,000 square meters (170,000 square feet) has already been completed to date in 2016. The majority of the remainder will complete between 2017 and 2018.

Looking beyond 2018, there are a number of sites with planning permission in place, particularly in the docklands area, which would suggest that further development could be mobilised should demand necessitate, however many developers appear to be either waiting for pre-lettings or to secure funding, which is delaying commencement. NAMA continues to hold a number of key sites in the docklands and it is not clear when these sites will be sold and subsequently built out by the purchasers.

There is still limited speculative development in the Dublin suburbs. As at June 2016 there is a total of 49,000 square meters (528,000 square feet) is under construction in the Dublin suburbs, in two projects, namely Microsoft's new headquarters which extends to 35,000 square meters (378,000 square feet) and which they are building for their own occupation, and our scheme at Central Park where we have 13,935 square meters (150,000 square feet) under construction. Recently completed schemes added 20,400 square meters (220,000 square feet) of new space.

Prime headline rents in Dublin city centre have grown 4.5% in the six months to June 2016 and currently stand at €618 per square meter (€57.50 per square foot) and in the south suburbs rents have remained stable at €296 per square meter (€27.50 per square foot). While leasing activity is down on the same period last year, tenant demand appears to remain robust and market commentators are still suggesting rents will get to €699 per square meter (€65 per square foot) by year end and to €726 per square meter (€67.50 per square foot) by the end of 2017.

Cork Office Market

The lack of new development continues to hamper take-up levels in Cork. In H1 2016, take up reached 6,100 square meters (65,650 square feet) (which if annualised would be 12,200 square meters (131,300 square feet)) compared to 22,100 square meters (237,800 square feet) in calendar year 2015. Tenant demand remains strong, albeit much of the FDI demand is for smaller suites. The issue facing the Cork market is a lack of modern space. While the office vacancy rate is 18.6%, much of the space is obsolete or requires a total refurbishment in order to let it. At present there is only one new building under construction, the Capital Cinema site which will provide approximately 1,860 square meters (20,000 square feet) of retail and 4,650 square meters (50,000 square feet) of offices. This is scheduled for completion in Q1 2017.

There are a number of sites for office development in the city centre and suburbs of Cork, however most developers are seeking pre-lettings in order to commence development and these are rare in the Cork market.

Rents for buildings in the city centre completed post 2000 are in the order of €215 per square meter (€20 per square foot). One Albert Quay, our only building in Cork, which is considered the best office building in the city by some margin, is now commanding rents of €296 per square meter (€27.50 per square foot) and the Capital Cinema scheme is likely to be marketed at a quoting rent of €323 per square meter (€30 per square foot). 

Retail

Consumer confidence has continued to grow, reflected in Government tax receipts which were up 10.5% in the year to the end of 2015. The Central Stastistics Office in Ireland has confirmed that retail sales have seen 31 successive months of expansion, with retail sales up 8.1% in the year to May 2016. Car sales have been one of the strongest performers, up 24% year on year as at end June. When the motor trade is excluded, retail sales are up 6.5% in the same period. While retail sale volumes are now only 3.3% off peak levels, the value of retail sales is still 17.6% off peak, which would suggest the consumer is benefitting from some imported deflation and discounting.

In addition, tourism figures are positive, up 10.3% in the year to May 2016, with the North American market up 19.3%, the UK market up 9.3% and the European market up 9.2%. While these numbers look strong a weak Sterling is likely to impact on travellers from the UK and over the medium term there are concerns that BREXIT may have a negative impact on tourism.

The retail real estate sector continues to improve. Prime retail is performing strongest, hampered only by limited vacancy on the prime high streets and shopping centres. There are some retailers looking to expand in multiple locations, typically in the café/restaurant and value sectors, but with limited demand from fashion occupiers. In addition, there is reasonable tenant demand for retail parks, albeit by a small pool of tenants. Rental growth is becoming more evident and not just for prime Dublin retail. Partly as a result of rents coming off such a low base and partly due to limited vacancy, the agents are reporting rental growth of 10-15% in provincial locations, depending on the location.

Some of the notable announcements in the period include John Lewis opening their first store in Ireland, taking space in the Arnotts department store on Henry street, and IKEA are rolling out a new click and collect concept with a 1,400 square meter (15,000 square feet) unit in Carrickmines Retail Park.

Development in the retail sector is limited. The only new scheme currently under construction is the western end expansion of Liffey Valley shopping centre in the western suburbs of Dublin, which is nearing completion. Lettings have been agreed there with Penneys, Cosmo, TGI Friday and Prezzo.

Industrial

Take-up in H1 2016 was 1.29 million square feet, down 35% on levels achieved in the same period of 2015. Demand remains at similar levels and property agents are suggesting there is currently in the order of 121,000 square meters (1.3 million square feet) of live demand. However, a shortage of supply of modern premises is restricting options and many occupiers are having to choose the design and built route in order to satisfy the requirements.

As was anticipated, rental growth has now emerged in this sector. In the six months to June, prime industrial rents rose by 12.9% and currently stand at €85 per square meter (€7.90 per square foot). By year-end the forecasts are for rents to increase to €94 per square meter (€8.70 per square foot) which could mean rental growth for the calendar year of up to 24.3%. 

At present we are the only developer building speculatively in the market, having just completed 4,100 square meters (44,000 square feet) at Horizon Logistics Park. With rents now starting to rise and the shortage of modern space clearly evident, it is likely that others will follow over the latter have of 2016 and into 2017.

The data centre market continues to see ongoing activity. Microsoft has obtained planning permission to develop four new data centres in Dublin and planning has also been granted for a new data centre in Cork.

Finally, while investment into the industrial sector is popular, particularly with Irish pension funds, the availability of product to buy is limited. In H1 2016, only 1% of transactions were accounted for by industrial property.

References

- CBRE Research Reports& Research department

- JLL Research Reports & Research department

- Savills Research department

- SCSI/MSCI Ireland Quarterly Property Index

- Investec Irish Economy research reports 2016

- Goodbody Irish Economy research reports 2016

- Davy Irish Economy research reports 2016

- Focus Economics

- IDA Ireland

- Central Statistics Office of Ireland

PORTFOLIO OVERVIEW

1. LOCATION

As at 30 June 2016, 93% of the portfolio is located in Dublin city centre and greater Dublin, with the remaining 7% located in Cork (One Albert Quay, 5%) and Limerick (Parkway Retail Park, 2%). This is in line with the Company's investment strategy to build a portfolio which would be predominantly Dublin and selectively Cork, Limerick and Galway.

LOCATIONS BY VALUE (1)

(1) Net of costs. Valuation as at 30 June 2016. Includes 100% of One Albert Quay, Cork

2. SECTOR SPLIT

The portfolio is split 78% offices, 15% retail, 2% industrial and 5% other (including residential and a hotel) by value. This is broadly in line with our original investment strategy of building a portfolio comprising predominantly offices (60%-70%), up to 25% retail and up to 15% industrial. Being ahead of the suggested office weighting is intentional, in that we believed that Dublin offices would perform best as a sector, which is proving to be the case. With regard to the weighting of industrial property, we have now completed two new units at Horizon Logistics Park, where the land is zoned for logistics warehousing and has capacity for up to 93,000 square meters (1 million square feet) of future development. We will soon be commencing the construction of another unit of 33,000 square feet and have agreed terms with Kuehne & Nagel to build them a new 7,400 square meter (80,000 square feet) unit with options to build two further units of 3,700 square meters (40,000 square feet) each. The allocation to industrial is therefore likely to increase as we build out the park.

SECTORS BY VALUE (1)

(1) Net of costs. Valuation as at 30 June 2016. Includes Green REIT's 60% in Mount Street property and 100% of One Albert Quay (Cork) (contracted to purchase)

3. RENT & ERV

The portfolio was 5% reversionary at 30 June 2015, with annual portfolio contracted rent of €61.3 million compared to an annual ERV of €64.6 million. Total annual passing rent of €45.9 million at 30 June 2016 will step up to €61.3 million on the expiry of rent free periods granted on new and renegotiated leases and other abatements granted to tenants.

RENTAL INCOME (1)

(1) Includes Green REIT's 60% in Mount Street property and One Albert Quay (Cork) acquired portion only

(2) Excludes ERV of development assets which are 1 & 32 Molesworth Street, Harcourt Road and Block H Central Park

(3) Unit B1 (new build) completed but vacant. ERV reflected in the above

On a sectoral basis, within the retail portfolio there remains an amount of over renting (23% at 30 June 2016 versus 28% at 30 June 2015), as this sector has only started to turn the corner and rental growth is yet to emerge. The contracted rent from the retail element is €10.7 million per annum (average €23.29 per sq. ft.) compared to an ERV of €8.8 million per annum (average €19 per sq. ft.). Helpfully the WAULT on our retail income is 8 years.

On the office side the Dublin CBD portfolio currently has a contracted rent of €24.3 million per annum (average €42.27 per sq. ft.) compared to an ERV of €27.6 million (average €48.21 per sq. ft.), and there is also further reversionary potential from the Greater Dublin office and Cork (One Albert Quay) elements of the portfolio.

CONTRACTED RENTS VERSUS ESTIMATED MARKET RENTS (ERVs) (1)

(1) Let properties only. Excludes car space rent (where applicable)

 TOP 10 OCCUPIERS BY CONTRACTED RENT (1)

The table below shows that our top 10 tenants account for 48% of the annual contracted rent. The top ten tenants include Vodafone, Allied Irish Banks, Fidelity International and Pioneer Investments.

(1) Includes Green REIT's 60% in Mount Street property and One Albert Quay (Cork) acquired portion only

(2) Includes Fidelity second lease contracted at €2.3m pa commencing in November 2016

(3) Unexpired Term/ WAULT is the rent-weighted average remaining term on leases to lease expiry/ break date (whichever comes first). Excludes residential component in Arena Centre

4. TENANT BUSINESS SECTORS

The portfolio has a diversified income base with a high quality tenant mix. As at 30th June 2016, 98% (measured by ERV) of the portfolio was occupied, with the banking/financial services sector where the largest concentration is, accounting for 41% of our annual contracted rent.

CONTRACTED RENT BREAKDOWN BY TENANT BUSINESS SECTORS (1)

(1) Includes Green REIT's 60% in Mount Street property and One Albert Quay (Cork) acquired portion only

5. WAULT & VACANCY

The weighted average unexpired lease term (WAULT) from the portfolio is 7.8 years, up 56% from 5 years at 30 June 2015. This increase in WAULT was brought about by the renegotiation of some of our key leases (e.g. Vodafone and Pioneer Investments) and the granting of new leases to the likes of Fidelity International in George's Quay.

LEASE LENGTHS & VACANCY

(1) Unexpired Term/ WAULT is the rent-weighted average remaining term on leases to lease expiry/ break date (whichever comes first). Excludes residential component in Arena Centre

APPENDIX 1 - EPRA PERFORMANCE MEASURES

APPENDIX 2 - ASSET MANAGEMENT INITIATIVES - 1 JULY 2015 TO 30 JUNE 2016 (1)

(1) Completed lettings but excludes deals in legals and deals completed for assets sold in the period. Residential element of Arena Centre excluded

(2) Car spaces excluded on rent psf calculations

(3) Bank of Ireland re-gear include term extension for five years with two year's rent equivalent break penalty on next break

(4) Fidelity second lease contracted with commencement date in November 2016

(5) Unexpired Term/ WAULT is the rent-weighted average remaining term on leases to lease expiry/ break date (whichever comes first). Excludes residential component in Arena Centre

(6) Calculations excludes licences

Principal Risks 

The Board takes the view that adequately identifying and managing the risks to achieving our strategic objectives is key to the successful delivery of shareholder returns. The Board has divided the principal risks into External Risks, over which we have no influence, and Internal Risks, which we can influence, which are set out below.

External Risks

Internal Risks

Financial Statements

Green REIT plc

Unaudited consolidated statement of comprehensive income

Green REIT plc

Unaudited consolidated statement of financial position

as at 30 June

The accompanying notes are an integral part of these financial statements.

Green REIT plc

Unaudited consolidated statement of changes in equity

The accompanying notes are an integral part of these financial statements.

Green REIT plc

Consolidated statement of cash flows

for the year ended 30 June 2016 and the year ended 30 June 2015