Yew Grove Rental Income Grows 41% to €8.9m - Construction Network Ireland - Construction Network Ireland

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Published in Commercial Property on 11/03/2020

Yew Grove Rental Income Grows 41% to €8.9m


CNI reports

Commercial property firm Yew Grove Reit reported a 41pc increase in contracted rent for last year to €8.9m.

During 2019, the company bought six buildings, in Waterford, Cork and Athlone, spending a total of €39.5m.

To fund this expansion, Yew Grove raised €36m from new and existing shareholders during the year.

It sold one property in Heather Road in Dublin, according to its annual results.

The company, which is mainly focused on office space that is located outside of Dublin city centre, now has a portfolio valuation of €116m, an increase of 49pc on 2018.

It currently has an acquisition pipeline of around €120m.

Jonathan Laredo, CEO of Yew Grove, said the company was “considering its funding options for financing its pipeline of acquisition opportunities, which could include using its existing share issuance programme later this year, together with debt finance where appropriate”.

The company remains confident in the fundamentals of its business, “and its continued success in 2020”, he added.

“The Irish economy again performed strongly in 2019 and the outlook for 2020 looks positive. Despite this, we acknowledge the seriousness of the Covid-19 outbreaks and will continue to monitor the situation closely,” he said.

Elsewhere, the company’s portfolio occupancy fell 5pc year-on-year to 92pc in 2019.

Meanwhile, its net asset value per share fell 1.7pc to 98.52.

Post-period end, the company acquired a further six buildings at Millennium Park in Naas, bringing the pro forma portfolio to €141m. Colm Lauder, analyst at Goodbody, said: “FY19 has been an important year of growth for Yew Grove.”

He continued: “Further scale will boost operational efficiencies, which in turn will support its income distribution objectives.”

In completing its €75m initial public offering in June 2018, the group became the first new company to trade on the Irish stock exchange since it became Euronext Dublin.

The group is chaired by Barry O’Dowd, a former senior vice-president of IDA Ireland.

Its shares were down less than 0.5pc yesterday.