Green Reit produces yield of 6.8%

Green Reit is producing a portfolio income yield of 6.8 per cent on its €774 million portfolio, the property investment company said this morning.

To date, Green has total capital invested of €774 million in 24 properties, with a portfolio value of €813 million. With 92 per cent occupancy, this portfolio produces a gross rent roll of €52.9 million, an investment income yield of 7.1 per cent and a portfolio income yield of 6.8 per cent.

Pat Gunne, chief executive, of the investment manager, said: "In line with our stated strategy, our investment focus has remained on the Dublin office sector which continues to lead the market recovery and will deliver attractive returns for our shareholders. Intensive asset management and selective development of our existing assets is now a key focus, together with further opportunistic acquisitions."

The investment company completed two acquisitions during the period July 1st - November 18th 2014. The Sapphire portfolio, Green REIT's largest acquisition to date, was acquired for a contract price of € 375 million, or € 385.3 million inclusive of costs. A property at 13-17 Dawson Street in Dublin 2, was also acquired for a contract price of € 23 million, of which €18m in debt was provided by Barclays Bank Ireland.

In the statement today, Green said it has identified six properties with “opportunity for refurbishment and redevelopment”, including those at Central Park in south Dublin and Dawson Street in the city centre.

The investment company’s total gearing level is currently 11.4 per cent, with a potential to increase to, but not exceed, 35 per cent.Green will shortly put in place a revolving credit facility with an initial limit of € 150 million but with scope to increase this limit to fund capital expenditure projects and further acquisitions.

Looking ahead, Green’s primary focus will be on “driving shareholder returns by: exploiting the active asset management initiatives identified for the portfolio; advancing the redevelopment and refurbishment opportunities of the 6 assets identified; and aquiring further assets that fit the company’s investment policy and which are accretive to NAV per share.”