PROGRESS UPDATE. January 2015

Transcription

1 PROGRESS UPDATE January 2015

2 DISCLAIMER This presentation document (hereinafter "this document") has been prepared by Green REIT plc (the Company ) and Green Property REIT Ventures Limited ( Green ), the Company s investment manager, for information purpose only. This document has been prepared in good faith but the information contained in it has not been the subject of a verification exercise. No representation or warranty, express or implied, is given by or on behalf of the Company, its group companies, Green or any of their respective shareholders, directors, officers, employees, advisers, agents or any other persons as to the accuracy, fairness or sufficiency of the information, projections, forecasts or opinions contained in this presentation. In particular, the market data in this document has been sourced from third parties. Save in the case of fraud, no liability is accepted for any errors, omissions or inaccuracies in any of the information or opinions in this document. Certain information contained herein constitutes forward-looking statements, which can be identified by the use of terms such as may, will, should, expect, anticipate, project, estimate, intend, continue, target or believe (or the negatives thereof) or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or actual performance of the Company may differ materially from those reflected or contemplated in such forwardlooking statements. No representation or warranty is made as to the achievement or reasonableness of and no reliance should be placed on such forward-looking statements. There is no guarantee that the Company will generate a particular rate of return. 2

3 Update GEORGES QUAY I DUBLIN 2

4 PORTFOLIO ASSEMBLY TIMELINE Arena Centre Tallaght, 4 Horizon Logistics Park Co. Dublin Globe Retail Park Co. Kildare Parkway Retail Park Limerick Molesworth Street Ormond Building Dublin 7 4 & 5 Harcourt Road Harcourt Street Dawson Street Fitzwilliam Hall Classon House Dundrum, Dublin 14 Parnell Car Park Dublin College Green 4-5 College Green Project Arc (5) Danske II Harcourt St / Harcourt Rd Dawson Street Purchase Price (1) 127m Latest valuation (4) +19% Purchase Price (1) 22m Latest valuation (4) +19% Purchase Price (1) 32m Latest valuation (4) -2% Contracted Price (1) 23m Contracted August 2014 (3) Jul 13 Aug 13 Sep 13 Oct 13 Nov 13 Dec 13 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Purchase Price (1) 4.2m Latest valuation (4) +13% Purchase Price (1) 53m Latest valuation (4) +36% Purchase Price (1,2) 115m Latest valuation (4) +2% Contracted Price (1) 375m Contracted June 2014 (3) INM Building Burlington Road & Mount Street Central Park Project Sapphire George s Quay Block A George s Quay Block E & F Georges Court 2 Burlington Road Dublin Mount Street (1) Net of costs (2) Green REIT plc s 50% share (3) Acquisition completed in October 2014 (4) Latest valuation date 30 th June 2014 (5) Excludes 97 St Stephen s Green which has been sold Westend Retail Park Westend Office Park Westend Commercial Village 4

5 OVERVIEW PORTFOLIO ANALYSIS Deal Flow 369m (1) invested as at 30 th June m (2) Portfolio value as at November 2014 Dublin Centric 96% by value (6) in Dublin (closed) Sectoral split by value 77% Offices 18% Retail 5% Other Active Management 144 Tenants 13 new lettings completed since acquisitions 92% occupancy by floor area (5) Lease events: 45% of our income has a lease event in the next 3 years, providing opportunities to optimise rental income Development Opportunities 6 major development/ redevelopments in Dublin Central Park Dawson Street Harcourt Road Horizon Business Park Molesworth Street Mount Street Attractive Yield Portfolio income yield 6.8% (3) Investment income yield 7.1% (4) Sectorial Split By Value (1,6) Development/ Lands 2% Industrial 1% Sectorial Split By Passing Rent Industrial 2% Other 2% Retail 18% Other 2% Retail 22% Offices 77% Offices 74% Office /4 55% Office Dublin - Other 23% Office /4 50% Office Dublin - Other 24% (1) Net of costs (2) Includes Project Sapphire and Dawson Street (completed in October 2014) at their total cost (3) Portfolio Income Yield is calculated as Passing Rent over Gross Value of the Portfolio (4) Investment Income Yield is calculated as Passing Rent over Gross Value of the Investment Assets only (5) Includes Let Agreed (6) Based on acquisition value 5

6 144 TENANTS WITH TOP 10 REPRESENTING 50% OF OUR 52.9M ANNUAL RENT ROLL Top 10 Tenants By Passing Rent as at December 2014 (1) Passing Rent m p.a. % of Group Passing Rent The Commissioners of Public Works Ireland (Government) Allied Irish Bank (Government) OPW, 4.7m, 9% Vodafone Ireland (2) Pioneer Investments Woodies DIY Limited (part of Grafton Group plc) Invesco Remaining Tenants, 26.3m, 50% Top 10 tenants, 26.6m, 50% Allied Irish Bank, 4.5m, 8% Vodafone Ireland, 3.6m, 7% Pioneer, 3.4m, 6% Northern Trust GAM Bank of Ireland RBC Dexia Woodies DIY, 2.4m, 4% Invesco Global AM, 1.9m, 4% Northern Trust, 1.9m, 4% GAM, 1.4m, 3% Bank of Ireland, 1.4m, 3% RBC Dexia, 1.3m, 2% Top 10 Total Portfolio Total (1) Includes Project Sapphire and Dawson Street (2) Central Park Rent represents 50% Green REIT plc s share 6

7 LEASE EVENTS BREAK OR EXPIRY BY TENANTS Lease Events Excluding Short Term Tenancies ¹ ² Year Total 2015 OPW Smyths Toys Investment Technology Aztec Exchange The Suit Co Remaining 8 tenants Passing Rent pa 2.0m 1.3m 0.2m 0.2m 0.1m 0.1m 0.2m % of Total 4.0% 2.5% 0.4% 0.3% 0.3% 0.2% 0.3% 2016 Invesco Global AM OPW RBC Dexia San Paolo Life AXA MP Financial Remaining 15 tenants Passing Rent pa 7.6m 1.9m 1.7m 1.3m 0.8m 0.3m 1.5m % of Total 14.9% 3.8% 3.4% 2.6% 1.5% 0.6% 3.0% 2017 Allied Irish Bank Pioneer OPW Citi LBBW Asset Management Remaining 15 tenants Passing Rent pa 13.3m 4.2m 3.4m 1.0m 1.0m 0.5m 3.2m % of Total 26.1% 8.3% 6.6% 2.0% 1.9% 1.0% 6.4% 2018 Vodafone Ireland Northern Trust Bank of Ireland Merrill Lynch AVEC Logistics Remaining 5 tenants Passing Rent pa 8.3m 3.6m 1.8m 1.4m 0.9m 0.3m 0.3m % of Total 16.3% 7.2% 3.5% 2.8% 1.7% 0.6% 0.6% Lease Events by Years 13.3m 26.1% > % % % % % (1) Figures above excludes short term licences/ Date of Analysis December 2014 (2) Central Park Rent represents 50% Green REIT plc s share 2.0m 4.0% OPW 1.3m 8 tenants, 0.2m The Suit Co., 0.1m Aztec, 0.1m Investment Tech, 0.2 m Smyth Toys, 0.2 m 7.6m 14.9% 15 tenants, 1.5m AXA MPF, 0.3m San Paolo, 0.8m RBC Dexia, 1.3 m OPW, 1.7 m Invesco 1.9m 15 tenants, 3.2m LBBW AM, 0.5m Citi, 1.0m OPW, 1.0 m Pioneer, 3.4 m AIB 4.2m 8.3m 16.3% 5 tenants, 0.3m Avec Logistics, 0.3m Merrill Lynch, 0.9m BOI, 1.4m Nothern Trust 1.8m Vodafone 3.6m

8 LEASE EVENTS BREAK OR EXPIRY BY PROPERTIES Lease Events Excluding Short Term Tenancies ¹ ² Year Total & 5 Harcourt Road George's Quay (Block A) Globe Retail Park Westend Retail Park Westend Commercial Other 2 properties Passing Rent pa 2.0m 1.3m 0.3m 0.2m 0.1m 0.1m 0.1m % of Total 4.0% 2.5% 0.6% 0.4% 0.2% 0.1% 0.2% 2016 George's Quay (Blks E & F) Mount Street Georges Court Westend Retail Park George's Quay (Block A) Other 6 properties Passing Rent pa 7.6m 3.2m 1.7m 0.9m 0.4m 0.3m 1.0m % of Total 14.9% 6.4% 3.4% 1.8% 0.8% 0.6% 1.9% 2017 George's Quay (Block A) 2 Burlington Road Harcourt Street Parkway Retail Park Horizon Logistics Park Other 5 properties Passing Rent pa 13.3m 6.2m 4.2m 1.0m 0.6m 0.5m 0.8m % of Total 26.1% 12.2% 8.3% 2.0% 1.1% 1.0% 1.6% 2018 Central Park Georges Court Arena Centre (Office) Horizon Logistics Park Westend Office Park Other 3 properties Passing Rent pa 8.3m 4.5m 1.8m 1.4m 0.3m 0.1m 0.2m % of Total 16.3% 8.9% 3.5% 2.8% 0.6% 0.2% 0.3% 2.0m 4.0% 2 properties, 0.1m 7.6m 14.9% 6 properties, 0.9m George's Quay, 0.3m Westend Retail Park, 0.4m George's Court, 0.9m 13.3m 26.1% 5 properties, 0.8m Horizon BP, 0.5m Parkway Retail Park, 0.6m Harcourt St, 1.0m 2 Burlington Rd 4.2m 8.3m 16.3% Arena Centre, 1.4m George's Court, 1.8m 3 properties, 0.1m 4-5 College Green, 0.1m Horizon BP, 0.3m Westend Commercial, 0.1m Westend Retail, 0.1m Globe Retail Park, 0.2m George's Quay, 0.3m 4&5 Harcourt Rd, 1.3m Mount Street, 1.7m George's Quay, 3.2m George's Quay 6.2m Central Park, 4.5m (1) Figures above excludes short term licences/ Date of Analysis December 2014 (2) Central Park Rent represents 50% Green REIT plc s share 8

9 ASSET MANAGEMENT INITIATIVES LEASE DEALS IN PROGRESS Leasing Activities (Subject to Contract) ¹ ² Property Type Stage Proposed Tenants Area Term Contracted Rent / Offer pa Underwrite at Purchase (UW) pa Comments/ incentives Existing tenant - an IT 8 office units Re-gear In Legals 24,038 sq. ft. 9 yrs Lease 439,033 Total 456,630 Total company in the traveltechnology industry currently The tenant currently occupies 35% of space in the building (under two leases) which will rise to 66% once the subject Classon House New Lease Advanced employs 300 people in Dublin 31 cars 5 yr Break 17.0 psf 17.9 psf letting is signed Dublin 14 Preliminary 12 mth Rent Free 950 pcs 850 pcs The proposed letting was agreed on the basis of securing an extended (3 years to 2019) term certain on the two existing 230,600 Capex -4% v UW leases (approx. 0.4m rent roll per annum) 3rd Floor Ormond Building Dublin 7 Re-gear New Lease In Legals Advanced Preliminary A multinational corporation that provides serviced office accommodation in business centres. Currently operates 2,000 business centres across 100 countries 8,837 - sq. ft. cars 20 yrs 10 yr 3 mth Lease Break Rent Free 220,925 Total 25.0 psf - pcs 171,438 Total 19.4 psf - pcs 309,295 Capex +29% v UW Offer is approximately 29% above rental underwrite at acquisition Capital expenditure required to bring the space to landlord specifications Unit 9 (part of) Re-gear In Legals A leading multinational 2,873 sq. ft. 20 yrs Lease 51,714 Total 34,476 Total Stepped rent over 5 years coffeehouse with franchises Parkway Retail Park New Lease Advanced across 30 countries 18 psf is average rent, approximately 50% above rental - cars 10 yr Break 18.0 psf 12.0 psf underwrite at acquisition Limerick Preliminary 12 mth Rent Free - pcs - pcs Subject to planning permission 230,600 Capex +50% v UW Block G 2 nd Floor Re-gear In Legals An IT company headquartered in Dublin who provides Central Park New Lease Advanced technology, distribution and marketing solutions to 25 cars 10 yr Break 23.5 psf 16.5 psf Dublin 18 Preliminary accommodation and other travel suppliers worldwide 12 mth Rent Free 1,500 pcs 1,200 pcs 26,123 sq. ft. 20 yrs Lease 651,391 Total 461,030 Total Expected occupation in April Capex +31% v UW Offer is approximately 31% above rental underwrite at acquisition Retail unit Re-gear In Legals A retail company specialises in baby products 4,836 sq. ft. 20 yrs Lease 181,350 Total 120,900 Total Lease commencement in September 2015 Westend Retail Park New Lease Advanced 0 cars 10 yr Break 37.5 psf 25.0 psf Blanchardstown Preliminary 6 mth Rent Free - pcs - pcs Dublin 15 27,203 Capex +50% v UW Offer is approximately 50% above rental underwrite at acquisition (1) In Legals subject to contract/ contract denied (2) Central Park Green REIT plc entitled to 50% share of the rent only 9

10 DEVELOPMENT OPPORTUNITIES (1) Property Dawson Street (Contracted) (3) 4 & 5 Harcourt Road Molesworth Street Mount Street Central Park Dublin 18 Horizon Business Park Dublin Airport CGI CGI: Block H Development Opportunity 0.45 acre Existing 42,000 sq. ft. Redevelopment of approx. 80,000-90,000 sq.ft. subject to planning consent Existing 32,000 sq. ft. Passing rent 1.3m p.a. expires Oct 2015 Existing 4 Georgian listed buildings Passing rent 0.5m Opportunity to refurbish and redevelop rear of no 32 Existing 49,412 sq. ft. Passing rent 1.7m expires April acres 700,000 sq. ft. planning consent 112 acres zoned & un-zoned land at Dublin airport Passing rent of 0.8m p.a. from 3 existing buildings Timing Vacant possession Q Commence on site immediately afterwards (subject to board approval) Propose new development of approx. 50,000 sq. ft. (subject to planning consent) Commence construction Oct 2015 Intention to submit planning permission by Q and commence on site once planning granted Obtain planning consent and tender early for Q for new build of approx. 50,000 sq. ft. Block H progress to tender 147,000 sq. ft. Possible commencement early 2015 Potential overall 1 million sq. ft. of logistics & warehouse accommodation Recently secured planning consent for 2 units totalling 77,000 sq ft. Proceed to tender Possible commencement on site early months Capital Requirement Estimated 59m 34m estimated Estimated 20,000 sq. costs (2) cost (2) ft. at 9.5m (2) Depends on refurbishment v. redevelopment Estimated 25m costs (2) - (Green REIT plc s 50% share) 7m estimated cost (2) for the 2 units (77,000 sq. ft.) Estimated Rent Indicative market rent 4m - 4.5m p.a. Indicative market rent 2.25m - 2.5m p.a. Indicative market rent 0.8m - 0.9m p.a. As above Indicative market rent 2m p.a - (Green REIT plc s 50% share) Indicative market rent 0.5m - 0.6m p.a. (1) Contingent on obtaining the necessary planning and board approvals (2) Estimated build cost before financial cost, but including site costs (3) Contracts exchanged with expected closing in October

11 LOW VACANCY RATE ONLY 8% OF OUR TOTAL PORTFOLIO SPACE IS VACANT Vacant Space ¹ ² Block G Central Park Parkway Retail Park Arena Centre Unit 7 Westend RP Globe Retail Park Ormond Building Property Unit Type Central Park (50% interest only) Floor Area sq. ft. As a % of Portfolio Total ERV million pa Block G Grd & 1 st Offices 22, % 0.44 Block C 5 th Floor Offices 5, % 0.09 Block P Basement Storage Storage 269 <0.1% - Westend Retail 7 Retail 17, % 0.32 Office Block B - Part 1 st Offices 4, % 0.05 Parkway Retail Park Units 6 & 7 Retail 17, % 0.15 Globe Retail Park Unit 8 Retail 10, % 0.11 Arena Centre Unit 8 Retail 4, % 0.05 Unit 10 Retail 10, % 0.03 Unit 9 Retail 2, % 0.02 Ormond Building 4.03 Offices 1,005 <0.1% Offices 473 <0.1% 0.01 Basement Offices 875 <0.1% Molesworth Street Unit 32 (Redevelopment) Offices 12, % 0.44 Unit 30 Basement Office 589 <0.1% Dawson Street Part 2nd Floor Redevelopment 2, % - Total 112, % Molesworth St Dawson St Let Agreed 7 lettings In Legals 63, % 1.4m² (Contracted) (1) ERV is based on figures as reported in the latest valuation report (2) Central Park Green REIT plc 50% share only 11

12 STRENGHTENED IRISH REAL ESTATE MARKET Investment Volumes & Transactions (e) Prime Yields Series Offices Offices Series Average Retail Retail Series Average Industrial Industrial Series Average Source: JLL, December 2014 Source: JLL, December 2014 Prime European Office Yields Q Irish Total Returns & Capital Growth 2008 Q Source: CBRE, December 2014 Source: CBRE, December 2014 Dublin Annual Take-up vs. Vacancy 2004 Q Office Rest of Dublin Office Central Dublin Dublin Rental Growth Forecasts = Source: CBRE, December 2014 Source: CBRE,

13 IRISH MARKET OBSERVATIONS Prime Headline Office Rents Dublin Q Q Peak pe rsq M Now Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Vacant Space + 2-year Pipeline as % of Stock Source: CBRE, January 2015 Source: CBRE, Q

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