Yew Grove REIT plc (LON:YEW) has reported its unaudited condensed consolidated results for the six months period ended 30 June 2021.
Strategic Highlights
• Continued strong rent collections for H1 2021 in excess of 99%
• Quarterly dividend payments continued with total aggregate year-to-date dividend distribution per ordinary share of 2.55 cents declared for H1 2021 (H1 2020: 2.45 cents)
• 13,350,000 million new ordinary shares issued in April 2021 at €0.95 per share
• Two properties purchased within eight weeks of share issuance for €19.0 million
• Admission to the regulated market of Euronext Dublin completed, satisfying the requirements of the REIT rules
• 100 million share issuance programme refreshed at the EGM in May 2021
• Forward funding of the new extension for a life sciences tenant started on Athlone campus
• Asset management has enhanced the Company’s property portfolio and revenue, including 20,000 square feet of office vacancy being let in early January 2021
• Strong pipeline of potential acquisitions continues
Financial Highlights
• Net Asset Value (“NAV”) per ordinary share was 100.64 cents as at 30 June 2021 (31 December 2020: 100.03 cents)
• Portfolio valuation on 30 June 2021 of €168.1 million (31 December 2020: €141.9 million)
• Period property valuation gain of €2.1 million (1.3%) after absorbing the costs of 2021 property purchases
• Properties owned throughout the period increased in value by 2.4%
• Annualised rent roll of €12.8 million at Period end (31 December 2020: €10.9 million)
• Period net revenues were €5.7 million, an increase of 8.1% on H1 2020
• Administration expenses were €2.5 million (H1 2020: €1.4 million), this included exceptional costs of €0.9 million for listing on the regulated market of Euronext Dublin
• Diluted EPRA earnings per share (“EPS”) of 2.14 cents (H1 2020: 2.76 cents)
• Credit facility drawings increased from €38.3 million to €49.5 million over the Period, leaving additional undrawn headroom of €3.8 million and cash of €11.3 million
• Company loan to value ratio of 29.6%, an increase from 27.2% as at 31 December 2020
Portfolio Highlights
The Group’s portfolio as at 30 June 2021:
• Weighted average unexpired lease terms of 4.6 years to break and 7.8 years to expiry (31 December 2020: 4.1 years to break and 7.2 years to expiry)
• Strong tenant covenants: (22% government and other state bodies, 71% FDI, 4% large enterprises and 3% SME by rent roll)
• Gross yield at fair value of 7.6%, with a gross reversionary yield of 8.4% (31 December 2020: 7.7% and 8.7% respectively)
• Vacancy rate reduced over the period to 4.7% (31 December 2020: 6.4%)
• Reversionary rent roll of €14.2 million (31 December 2020: €12.4 million)
Jonathan Laredo, Chief Executive Officer, commented:
“In the first half of 2021, Ireland continued to work from home. Despite the strains imposed on all by the Covid-19 pandemic, the Company delivered leading rent collections, a growing rent roll and stability of its portfolio valuation. The Company has raised and deployed further equity capital, increased its office and industrial asset portfolios and rent roll, reduced vacancy and begun its first industrial development for a life sciences tenant. We have a programme of additional asset management works underway and an identified pipeline of accretive investments.
Yew Grove REIT is the only REIT predominantly focussed on investing in the office and industrial sectors of the Irish real estate market outside of Dublin’s traditional central business district. The Company’s focus on government and FDI tenants continues to support its quarterly dividends. We have been particularly pleased with the expansion of our life sciences campus in Athlone. This validates Yew Grove REIT’s differentiated strategy, targeting well tenanted commercial real estate, and I look forward to continuing this in the second half of the year.”
