Niall Gaffney, Chief Executive, IPUT Real Estate, commented:
We delivered a resilient performance for 2020 despite an uncertain market environment. This resilience, and the quality of our portfolio, is clear in our rental recovery of over 97% resulting in a cash dividend of €102.5 million for our shareholders.
Our 50 year track record has allowed us take a long term approach to actively managing our estate. 2020 has reinforced our view that sustainability and responsible investing are even more important now than ever before.
As the largest owner of offices in Dublin we recognise that we have a role to play in re-invigorating our city and its neighbourhoods in a post-pandemic world – a recognition that has inspired an increased focus on placemaking. Our focus for 2021 will be to continue to re-position and future-proof our offices – investing in our estate to build-in long term resilience by ensuring that workplaces become more sustainable and attractive places for all our stakeholders.
Financial Highlights
- 97% rent collection for 2020
- Full year cash dividend paid of €102.5 million; delivering a net dividend yield of 3.8%
- Portfolio value of €2.9 billion, with 97% occupancy at year-end and a WAULT of 6.5 years
- Total shareholder return of 2.2% for 2020; outperforming industry benchmarks
- 2020 year-end contracted rental income of €122 million
- Development pipeline 84% pre-let which will increase contracted rent to €160 million over the next three years
- Successfully raised €200 million through a US private placement offering
- New €300 million revolving credit facility put in place with Wells Fargo Bank – which includes a €200 million green component, representing the largest green facility in the Irish real estate market
Strategic & Operating Highlights
- Letting highlight of the year was three floors extending to 44,000 sq. ft. at 3 Dublin Landings to Microsoft
- 15 rent reviews on 309,000 sq. ft. added additional €2.35 million to rent roll
- Planning permission received for redevelopment and extension of two city centre office buildings extending to 220,000 sq. ft.
- Our flagship office project at Wilton Park progressed well. One Wilton to complete in summer 2021 with the remaining three buildings on target to complete in 2023. All four buildings, comprising 580,000 sq. ft., fully pre-let to LinkedIn
- Completed largest Dublin logistics letting since 2010 with 20-year lease for the 325,000 sq. ft. logistics unit at Damastown Business Park
- Commenced our first greenfield logistics development at Aerodrome Business Park to deliver 120,000 sq. ft. facility in Q3 2021
ESG Highlights
- Launch of Making Place thought leadership initiative with a focus on enhancing city centre office locations and surrounding neighbourhoods
- Investment in and re-opening of our city parks: Earlsfort Gardens and Wilton Park
- Achievement of Four Star GRESB rating
- Achieved an A rating in our first PRI Assessment
- Committed to achieve net zero carbon by 2030 for assets within direct control
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