Value of Iput property assets rises to €2.2bn

Property fund returned €21.6m to shareholders in third quarter

Iput’s flagship development of the old passport office at 10 Molesworth Street, Dublin 2.

Iput’s flagship development of the old passport office at 10 Molesworth Street, Dublin 2.

 

The value of Irish property fund Iput plc’s assets rose to €2.2 billion by the end of last month.

The net asset value recorded in the third quarter represents an increase of 5.9 per cent on the previous quarter and is up from the €1.95 billion valuation this time last year.

On the back of continued growth, the fund returned €21.6 million to shareholders in the third quarter, it said in a trading update on Wednesday. That return, it said, represents a 4.1 per cent dividend yield over the past 12 months. While rental values increased by almost 2 per cent in the quarter, Iput warned that growth has not been uniform across all sectors.

Having collected €23.7 million of rental income, the fund notes strong growth in industrial rental values and, contrary to trends, in office rentals. However, it says growth in its office portfolio is due to “specific asset management initiatives undertaken by Iput”.

Six new tenants were added to the fund’s portfolio in the third quarter with terms on all leases coming in 9 per cent ahead of estimated rental value. The addition of logistics company DB Schenker, ecommerce group Jet. com and telecommunications company Vodafone helped to bring the value of new leases signed in 2017 to €9.5 million.

In terms of new acquisitions, Gardner House, Dublin 2, will be added to the fund’s portfolio in the coming three months. The 7,000sq m office building adjoins the Iput owned Wilton Park House.

Additionally, Iput acquired a 1,200sq m supermarket unit at Grand Canal Square, Dublin 2, for €6.5 million.

‘De-risked’

Celebrating its 50th year in operation, Ireland’s largest unlisted fund said it has “largely de-risked” its current added value projects. Construction activity on its 40 Molesworth Street, Dublin, project has completed.

The Exchange building in the International Financial Services Centre is expected to be completed this month, while the flagship 10 Molesworth Street, Dublin, office development is on schedule for practical completed by spring of next year.