GREEN Property has reported a 77 per cent rise in pre-tax profits to £21.4 million (€27.2 million) for 1998 on the back of strong returns in the Republic, particularly from its retail development at Blanchardstown, Co Dublin.
The company's turnover was up 62 per cent to £42.7 million (€54.2 million), while earnings per share increased to 17.34p (22.02 cents) from 15.88p (20.16)
The company said it was capable of spending up to £180 million on future acquisitions and maintained the biggest challenge this year - the slowdown in the British economy - would not affect it adversely because tenant demand in its sectors remained strong.
The chief executive, Mr Stephen Vernon, said the "provincial office" market in Britain was particularly sluggish, but Green Property was no longer in that market. He added that a fall in British interest rates would be good news for the capital value of its British portfolio.
The company said its Irish investment portfolio produced a return of 40 per cent for the year, according to a valuation by Jones Lang Wootton. The capital value of its Dublin office portfolio rose by 20 per cent in line with general market trends.
Net rental income from the Irish portfolio increased by 30 per cent reflecting increased rent on review, the letting of new developments and the expiry of rent-free periods.
The valuation of the company's Irish portfolio was boosted by more than £50 million from the second phase of retail warehousing which came into the market during the year at Blanchardstown.
Mr Vernon said the company had submitted a planning application to Fingal County Council to extend Blanchardstown further. Development is continuing at Fonthill Industrial Park with 65,000 sq ft let and a further 100,000 sq ft being offered. Green has obtained planning permission for two major office developments at Hatch Street and Sandyford in Dublin and work should be completed by late 1999 or ealy 2000 on both of them.
The retail mall planned by the company for Killarney, which was expected to open in March, has been delayed, but Mr Vernon said it should open in the next few months. No details on letting have been released yet.
The acquisition of Trafford Park Estates made a contribution to the figures for the second half of the year. Since the acquisition, Green has acquired total ownership of the Electric Park site and sold some of the Trafford properties, which were considered too small, for about £7.5 million.
The company said the 30 acres of land at Ringway, near Manchester airport, was one of the key sites acquired in the bid and it hopes to develop it as a high-tech business park. The overall annual return on the rest of its British portfolio was 16.5 per cent. The net rental income for Britain increased by 83 per cent to £21.4 million sterling.
The company has declared a second interim dividend of 4p, bringing the total dividend for the year to 5.8p, a 9.4 per cent increase over last year's figures.
