Rental income at property firm Green Reit has increased to €79.4m from €75.5m since the start of the year, according to a trading update from the company.
When rental income from lettings with terms agreed and in advanced discussions are included, then rental income rose to €83.3m at the commercial property company, which dramatically put itself up for sale earlier this year.
This represents an increase of 10pc on the contracted rent at 31 December 2018, in what the group said were “favourable market conditions.”
Gary Kennedy, chairman of Green Reit, said: “The leasing success achieved to date in 2019 demonstrates the high quality of our portfolio and the very supportive backdrop of the market, which in quarter one of 2019 witnessed a new record level of take-up in the Dublin office market.”
“Combined with the sustained low interest rate environment, the operating environment remains strong across both the occupier and capital markets.”
During the period Green Reit had one new letting signed and terms agreed on a further two lettings at George’s Quay Estate in Dublin, which will bring it to full occupancy, with additional annual rent of €1.8m.
Elsewhere, terms were agreed for the retail space at One Molesworth Street (also in Dublin), at an annual rent of €505,000, which will bring the building to full occupancy, delivering a total rent of €5.85m a year.
In April this year Green Reit said that, following a “comprehensive and carefully considered” review of its options to maximise shareholder value, a decision to sell the company or its portfolio of assets had been taken.
Today Mr Kennedy said he was “pleased” with how the sale process is progressing and the level of interest expressed to-date.
“We will provide a further update to shareholders as and when appropriate,” he added.
Green Reit was the first Irish reit, a special type of company that benefits from reduced taxation – including not having to pay corporation tax on rental profits or the standard capital gains on asset sales, as long as it meets criteria including only investing in property and distributing the vast bulk of income as dividends each year.
In theory, reit structures push the tax bill from the listed entity onto its investors, including capital gains when it is sold.
Shares in Green Reit were trading up over 2pc so far today.