Jonathan Laredo, CEO of YEW Grove REIT (LON: YEW) joins DirectorsTalk to discuss Interim results for the six months ended 30th June 2019. Jonathan talks us through the highlights, explains what the portfolio now consists of, talks us through the 12 month share issuance programme and how the second half has started so far.
· June 2018 IPO proceeds and debt facility raised in 2018 fully committed.
· 12 month share issuance programme for €100m announced in June 2019; €90m remaining as subsequent to the Period end €10 million of equity capital and €9.1 million of additional debt facilities was raised.
· Continued opportunity to invest in commercial real estate at attractive yields with two properties acquired during the Period for €11.5 million; three additional properties acquired following Period end for €13 million.
· Asset management programs have enhanced the portfolio and income, including €3 million received from a lease surrender, €1.4m of which was returned to shareholders by way of a special dividend.
· Quarterly dividend payments commenced with total aggregate year-to-date dividend distribution per ordinary share of 4.33 cents for 2019.
· Positive Irish commercial real estate market continues to support the strength of the Company’s potential acquisition pipeline.
YEW Grove REIT Financial Highlights
· EPRA Net Asset Value (“NAV”) per ordinary share of 103.98 cents as at 30 June 2019 (100.75 cents excluding declared and subsequently paid dividends).
· Portfolio investment properties independently valued on 30 June 2019 at €90.47 million (31 Dec 2018: €77.9 million).
· Annualised rent roll of €7.5 million at Period end (31 Dec 2018: €6.3 million) increasing to €8 million following three acquisitions after Period end.
· EPRA earnings per share (“EPS”) of 5.81 cents
· The Group’s owned and committed properties at 30 June 2019 benefit from attractive leases:
• Weighted average unexpired lease terms of 3.8 years to break and 6.6 years to expiry
• Strong tenant covenants: 33% Government and other State Bodies tenants, 63% FDI / Large Corporate tenants by income
• Gross yield at fair value of 8.3%, with a gross reversionary yield of 8.9% (up from 8.1% and 8.7% respectively at 31 December 2018)