Real Estate Opportunities (REO), the listed property vehicle controlled by Treasury Holdings, saw its pretax profit rise more than fourfold last year as the value of its investments increased.
The company, structured as a split-capital trust, said its net assets more than doubled in value during the year, standing at £184 million stg (€266 million) at the end of December. This resulted in the net asset value per share of 72.9 pence, up 73 per cent on the prior year.
During the year REO, which is 57 per cent owned by Treasury Holdings, the property group run by Johnny Ronan and Richard Barrett, continued its strategy of exiting its UK portfolio and sold three properties at more than their respective valuations, leaving just one asset worth £3 million. As a result the company is now well placed to focus on its Irish portfolio, chairman Ray Horney said in a statement to the Irish Stock Exchange.
The value of the Irish portfolio increased to just under €1.1 billion during the year, an annual gain of 29 per cent. This increase was attributable to significant gains in the valuation of the group's interests in development assets at Central Park in Leopardstown and the Allegro site in Sandyford.
In the statement, Mr Horney said the company grew substantially through asset growth and through the issue of new shares. He also said assets had been realised at substantial premiums to their carrying value.
During the year REO made its first foray into China with a £4 million investment in China Real Estate Opportunities (CREO). The group, a cash shell set up to target real estate opportunities in China, began trading on London's AIM at the end of last year.
REO will pay its first final dividend of 1.5 pence, bringing the full-year total to 2.5 pence.
Mr Horney said that prospects for continued Irish economic growth were strong and, as a result, the future for the company was positive. He said any further interest rate rises were unlikely to have a negative effect on the property market.
REO raised €375 million in January to pursue further real estate opportunities and said yesterday it was actively seeking expansion possibilities.
