IPUT | Investors Relations

IRELAND'S PREMIER PROPERTY FUND

IPUT plc | Annual Report & Financial Statements 2017

Chief Executive's Review

Niall Gaffney IPUT Chief Executive
"2017 was a big year for IPUT. The marking of our 50th year in business and the pre-letting of our entire development pipeline were the standout highlights. Our strategy of regenerating portfolio income continues to drive the performance of the Fund."

Key Highlights
Key Highlights

Key Highlights

€15m+

of new income secured through pre-lets

€123m

Estimated Rental Value

98.1%

Occupancy rate

€144

Strategic Acquisitions

12.6 years

Average WAULT on new lettings

€31m

Capital recycled through disposals

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Ireland's Premier Property Fund

IPUT plc | Annual Report
& Financial Statements 2017

Our Key Performance Indicators

Consistent income returns over the long term

Total Shareholder Return (%)

9.5%

The performance for 2017 reflects the significant capital value growth generated by the added value activity undertaken by the Fund.

Total Shareholder Return - Graph

Dividends

€86.6m

We have consistently paid our shareholders quarterly cash dividends over the past 50 years. The Fund is generating a dividend yield of 4% despite 9% of the portfolio being under development at year end.

Dividends - Graph

Net Asset Value

€2,292m

The Net Asset Value reflects the current value of the Fund.

Net Asset Value - Graph

Net Rental Income

€92.7m

We aim to grow rental income annually through the acquisition of new properties and the active management of the portfolio.

Net Rental Income - Graph

Occupancy

98.1%

We actively manage our portfolio to optimise our rental income. The occupancy rate of 98.1% is a reflection of the strength of the underlying tenant covenants across the portfolio.

Occupancy - Graph

Rent Collection

100%

To maximise our cash flow we aim to collect at least 95% of rent invoiced within 30 days of the due date.

Rent Collection - Graph

Total Expense Ratio

35bps

IPUT is an internally managed fund owned and operated on behalf of its shareholders. This structure ensures that operating costs are managed very efficiently.

Total Expense Ratio - Graph

Project Highlights

10 Molesworth Street

Dublin 2

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Leading Irish financial services group Allied Irish Banks plc pre-let the entire of 10 Molesworth Street, Dublin 2. The 10,680 sq m (115,000 sq ft) landmark office building is located at the heart of Dublin's commercial and government quarter and is due for completion in Q1 2018.

The original building was acquired in March 2013 for €18m and planning permission to redevelop the space was received in 2014. The full redevelopment of the site commenced in 2016 and has been managed by IPUT's in-house development team.

With a final construction cost of €45m, this is the largest redevelopment project undertaken by IPUT to date. The project has been a significant success for the Fund delivering an income yield on cost of c.11% and a profit on cost of 129%.

Status
100% pre-let

Income
€7m

Income Yield on Cost
11%

10 Molesworth Street - View 1
10 Molesworth Street - View 2
10 Molesworth Street - View 3
10 Molesworth Street - View 4

The Exchange, IFSC

Dublin 1

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The Exchange completed in October 2017 and is the first new build office in the IFSC since 2003. IPUT forward funded The Exchange taking an active role in the design, marketing and management of the building. The Exchange benefits from a 2-year rental underwrite from date of completion.

High quality tenants have been secured on long term leases for almost half of the 9,750 sq m (105,000 sq ft) space including; Food Safety Authority of Ireland, Walkers Global, Liquidnet and Ronan Daly Jermyn.

Status
2-Year rental underwrite

Income
€5.4m

Income Yield on Cost
6.4%

The Exchange Building - View 1
The Exchange Building - View 2
The Exchange Building - View 3
The Exchange Building - View 4

40 Molesworth Street

Dublin 2

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In July, IPUT pre-let 40 Molesworth Street to leading U.S. online retailer Jet.com. The 20-year lease, at a headline rent of €60 per sq ft, has a term certain of 12 years and added €1.8m to the Fund's rental income. Specsavers have also agreed to take a 15-year lease of the ground floor retail space adding a further €0.3m to annual rental income.

40 Molesworth Street was acquired in March 2013 for €8.4m and IPUT subsequently secured planning permission for a substantial redevelopment of the entire building. Vacant possession was secured in May 2016 and the Fund commenced a full redevelopment at a cost of approximately €13m. The existing structure was stripped back to its frame and two penthouse office floors were added. The external fa├žade has been completely transformed with a high-performance curtain walling system finished in a distinctive handcrafted Petersen brick making it one of the most distinctive and attractive buildings in the CBD.


Status
100% pre-let

Income
€2.1m

Income Yield on Cost
9.5%

40 Molesworth Street - View 1
40 Molesworth Street - View 2
40 Molesworth Street - View 3

2017 Acquisitions

Wilton Park House

Dublin 2

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Size:
13,190 sq m (141,986 sq ft)

Status:
100% Let

Purchase Price €62.3m Dublin Prime Existing Presence Logistics - Existing Co-Ownership

Wilton Park - View

Gardner House

Dublin 2

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Size:
7,000 sq m (75,600 sq ft)

Status:
100% Let

Purchase Price €63.3m Dublin Prime Existing Presence Logistics - Existing Co-Ownership -

Gardner House - View

Northwest Business Park

Dublin 15

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Size:
12,500 sq m (135,000 sq ft)

Status:
Under Refurbishment

Purchase Price €12.3m Dublin Prime Existing Presence Logistics Existing Co-Ownership -

Northwest Business Park - View

Fresh Supermarket,

1 Grand Canal Square, Dublin 2

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Size:
1,200 sq m (13,155 sq ft)

Status:
100% Let

Purchase Price €6.5m Dublin Prime Existing Presence Logistics - Existing Co-Ownership -

1 Grand Canal Square - View