Kennedy Wilson sees double-digit rental growth in Ireland

Property investment group Kennedy Wilson, which has 105 commercial and 128 private-rented sector leases in Dublin, saw double-digit rental growth in Ireland in 2015, with full-year income coming in at €29 million.

The US fund, which also operates in the UK, Italy and Spain, said Irish-derived revenues totalled €128.9 million.

Kennedy Wilson, which acquired Bank of Ireland’s real-estate business in 2011, has a portfolio that includes The Shelbourne Hotel, Stillorgan Shopping Centre, Baggot Plaza and Portmarnock Hotel and Golf Links.

Noting recent positive forecasts, Kennedy Wilson said it “bodes well for our investment and development portfolio generally and for improving income generation, with 350,000 sq ft of rent reviews pending on our Dublin office space between now and the end of 2018.”

Kennedy Wilson Europe increased its first quarterly dividend for 2016, as it reported an increase net asset value after a strong portfolio valuation increase last year.

The group declared a12 pence per share dividend for the first quarter of 2016, up from 10 pence in the preceding quarter.

The group said its property portfolio - which covers 302 properties - was valued at £2.79 billion at the end of last year from £1.6 billion on the back of a number of key acquisitions.

Last year Kennedy Wilson Europe made acquisitions totalling £1.13 billion across 217 properties and two loan portfolios, delivering a yield on cost of 7.1 per cent.

The fund saw its net asset value (NAV) rise 15% over the year to £1.53 billion from £1.39 billion in 2014.

Adjusted earnings per share of 47.9 pence and basic earnings per share of 191 pence, were both up materially over the preceding year.

"Our business remains in robust operational health with ample liquidity. This will allow us to selectively capitalise on investment opportunities across our target regions that may arise from potential market dislocations, given the current volatile state of capital markets," said Mary Ricks, chair and chief executive, Kennedy Wilson Europe.