Greenbay, the hybrid property company that invests in other property stocks and directly in real estate, achieved distributable earnings of 0.204 British pence per share in the six months to March, exceeding guidance provided in September 2016.
The group said in its financial results for the reporting period that it will declare a dividend of 0.2p per share for the interim period.
Greenbay’s initial plan is to invest in listed European property funds and distressed real estate assets. CEO Stephen Delport said the group had managed to grow its portfolio opportunistically, despite a volatile world economy.
Greenbay increased its net asset value per share from 4.80p at the of March 2016 to 7.35p at the end of March 2017, an increase of 53.1%. "The increase in net asset value since September 2016 is 8.7%," said Delport.
The group’s loan-to-value ratio was 6.5% at the interim period end. With the increased direct property exposure, the board’s policy is not to exceed a loan-to-value ratio of 45%.
Greenbay acquired 50% of the holding company of Forum Coimbra and Forum Viseu, two retail centres in Portugal, for close to €110m during the period. Garreth Elston of Golden Section Capital said Portugal offered improving investment fundamentals as a country.
"The Iberian peninsula has been displaying increasingly positive economic fundamentals over the last two years. Both Portugal and Spain have been delivering on their economic reform programmes and have managed solid growth," he said
The Portuguese deal represented a yield of approximately 6%. Greenbay sourced and concluded the transaction and brought JSE-listed Resilient real estate investment trust in as a 50% partner, due to the size of the investment. Resilient will provide development expertise to the centres. The transaction is expected to be finalised by the end of May.
The company’s functional, trading and reporting currency changed from the pound to the euro effective from April, after the end of the reporting period. Delport said he was confident that a dividend of approximately 0.236 euro cents per share for the second half of the financial year would be declared.
This, together with the interim dividend of 0.20p per share, was in line with the guidance previously provided of 0.40p per share for the 2017 financial year. "We expect 25% growth in dividends for the year ending September 2018," said Delport.