Green Property has continued to record strong growth with a 54.7 per cent rise in pre-tax profit to €42.2 million (£33.2 million) in 1999, up from €27.3 million in 1998 and ahead of market forecasts. Further growth is anticipated and the company said new projects planned in Britain and Ireland should increase income flows over the coming years.
Chairman Mr Ray MacSharry said, despite international scepticism about Ireland's economic prospects, it showed few signs of a major reverse. "Increases in rental levels have been driven by tenant demand and, as such, development has been underpinned," he said. "There has been little evidence of speculative development running ahead of demand and the ability to finance is likely to be the main constraint on restricting over-supply."
The Irish portfolio, he said, was "highly reversionary" and, in the absence of a major economic setback, was expected to continue to deliver good performance. In Britain, improvements in economic conditions had led to a strengthening of demand and this should lead to increased asset valuation.
The latest results benefitted from a surge in rental income to €73.4 million from €54.3 million. A big rise in profits from disposals to €8.6 million from €1.2 million also boosted profits. Reflecting real growth, earnings per share grew by 39.6 per cent to 30.75 cents from 22.02 cents. Net assets per share improved by 38.5 per cent to 813 cents from 586 cents, but 32 cents of this was due to a favourable sterling translation.
The figures do not include a revaluation of Hatch Street, amounting to about 15 cents. Also a profit of come €3.5 million from the sale of Watford will come through in the interim results. The gearing increased marginally to 68 per cent from 64 per cent.
Shareholders are to benefit in part from the increased profits. A final dividend of 5.6 cents per share has been declared, making a total of eight cents, an 8.7 per cent increase over the 1998 payment. The group's net rental income rose to €73.4 million from €54.3 million reflecting the inclusion of the Trafford Park Estates portfolio for a full year, the unwinding of rent-free periods on developments and the net acquisition of additional investment properties.
Green said the Irish portfolio showed an "outstanding performance" with the Blanchardstown Centre and the central Dublin office portfolio the main drivers of growth.
In Britain, a stronger property market "assisted in the investment portfolio showing an overall return of 20 per cent". The main valuation increase arose from an active management approach, Green said.
