IPUT plc, Ireland’s largest unlisted property vehicle, held its AGM today at 12.00 noon at Westbury Hotel Conference Centre, Dublin 2, Ireland.
Mr. John Mulcahy, Chairman of IPUT plc, noted in his annual statement:
“IPUT’s focus is the delivery of consistent income returns for shareholders in the form of cash dividends paid on a quarterly basis. This is achieved by owning prime, large scale assets mainly in Dublin. We aim to optimise returns through the active management of our portfolio, with an emphasis on the ongoing regeneration of the Fund’s existing assets.
The IPUT Property Fund’s Net Asset Value (NAV) reached €2bn in 2016 and recorded a Total Property Return of 12% driven both by the quality and strength of our portfolio, together with value-added contributions as investment in our existing assets comes on stream. Our long-term performance compares very favourably to the IPD benchmark and we continue to outperform the benchmark over 3, 5, 10 and 20-year periods.
€85.5m of contracted income was collected in 2016, representing a 100% recovery rate. Significant rental growth was captured over the past 12 months through tenant engagement and active management of properties while reducing the risk profile of the portfolio.
Our Total Expense Ratio, at 0.27%, remains well below industry norms. In line with the continued growth and expansion of our fund, we may see this ratio increase as we add to our headcount.
IPUT paid out €82m to shareholders through quarterly cash dividends, a 3.4% increase on 2015. The annual dividend of €42 per share is in line with the average dividend payment over the last 3 years. The asset management initiatives currently underway position the Fund for the future and we expect an increase in the dividend per share post the completion and letting of our assets under redevelopment. IPUT’s portfolio of assets continues to show year-on-year growth as capital values continue to grow, albeit at a more moderate pace than in recent years.
We accepted an additional €111m of new equity from new and existing shareholders and have demand for further investment which will be drawn into the Fund as opportunities arise. We have successfully deployed over €148m across 8 assets during the year and we continue to focus our attention on assets where we have an existing presence or where we see the real potential to add value.”
Commenting on future outlook, Mr. Mulcahy said: “We can see uncertainty in the next 24 months. While these developments present their own challenges, some of these should be to our benefit. As expectations of interest rate rises drift out further, our dividend yield of 4-5% over the coming years will remain attractive for our shareholders. We remain confident about maintaining strong recurring dividends for our shareholders in the medium and long term. Our portfolio of high quality assets is well positioned to deliver on this core objective.”
Mr. Mulcahy was appointed Chairman of IPUT plc in October 2016 following the retirement of Mr. Frank Close from this role. For more information and to download a copy of the IPUT 2016 Annual Report, please go to www.iput.com
For reference, issued on behalf of IPUT plc by FTI Consulting. For media queries, please contact:
Jim Devlin, FTI Consulting. t: 01 66 33 600 m: 087 2631057 e: firstname.lastname@example.org
IPUT plc announces that it has leased 4,432 sq m (47,426 sq ft) of office space at P3 Eastpoint Business Park, Dublin 3 to US multinational, Citrix Systems.
Citrix Systems had been an existing tenant in the building and as part of this deal have extended their existing lease and taken a new lease on the remaining space. This follows an extensive upgrade of the building which was completed by the Fund and has secured over €1.1m of rental income from a strong covenant for the long term.
Citrix Systems is a US software company generating revenues of over $3bn per annum (2016). Established in 1989, Citrix are recognised worldwide as one of the market leaders of server & networking software. More recently they have transitioned into cloud computing technologies and the Dublin office will primarily provide inside sales roles and technical support to this area - read full story here
EastPoint Business Park is a 40-acre office park with over 50 companies located in Dublin’s Docklands and benefits from strong road and rail transport links. The park is home to a mix of Irish and multinational companies including Google, Cisco, Virgin Media Datalex and Verizon.
Knight Frank handled the letting on behalf of IPUT plc and Citrix were advised by JLL.
As part of the schedule of events to mark the 50th anniversary of the Fund, IPUT was a headline sponsor at the recent INREV Annual Conference which was held on April 4th and 5th in Berlin. INREV is the European Association for Investors in Non-Listed Real Estate Vehicles. The association represents and reflects an industry with a total value of €2.1 trillion.
INREV members include around 75 of the largest institutional investors as well as 40 of the 50 largest real estate fund managers, plus banks and advisors across Europe and elsewhere. IPUT featured prominently over the two days of the conference with management meeting a number of leading global institutional investors. We will continue to participate in similar industry events with a view to increasing awareness of IPUT amongst European institutional investors, building the IPUT brand as the property vehicle of choice for Ireland.