INTERIM RESULTS FOR THE 6 MONTHS TO 31 DECEMBER 2018

Dublin, 26 February, 2019 - Green REIT plc, (“Green REIT” or the “Company”), the Irish property
investment company, today announces its results for the six months ended 31 December 2018.

High quality portfolio delivering consistent returns

§ EPRA NAV per share up 2.2% to €1.83 per share, post payment of 2.7 cent per share dividend in
October 2018. Increase of 3.7% gross of dividends paid in October 2018
§ 12.6% total return for the year to 31 December 2018 (year to 30 June 2018: 13.4%) based on
growth in EPRA NAV and dividends paid
§ Profit for the period of €45.6 million (2017: €53.0 million) and EPS 6.5 cent (2017: 7.7 cent),
reflecting moderating valuation uplifts Portfolio valued at €1,483 million (30 June 2018: €1,424
million), up 4.1% gross of capital expenditure
§ Property revaluation surpluses of €25.4 million (2017: €31.3 million)
§ EPRA Earnings of €21.7 million (2017: €22.1 million) or 3.1 cent per share (2017: 3.2 cent per
share)
§ LTV remains low at 17.5% (30 June 2018: 15.5%), with undrawn facilities at period end of €101
million providing further capital for deployment into development pipeline
§ Interim dividend of 2.8 cent per share (2017: 2.6 cent interim dividend). Guidance of a dividend
of 4% per annum on NAV post current development programme reaffirmed

Prime portfolio with income security of 8.7 years

§ WAULT of 8.7 years across the portfolio at 31 December 2018 (30 June 2018: 8.8 years)
§ 4% increase in contracted annual rent to €74.4 million (€71.7 million at 30 June 2018), or €75.5
million including the pre-letting agreement signed with Bunzl at Horizon Logistics Park
§ €2.9 million of new annual rent secured through 3 new lettings/pre-lettings on 12,900 square
metres (139,100 square feet) signed in the period
§ Four rent reviews settled in the period, achieving a 37% (€0.8 million) annual rental uplift on the
previous rent
§ Low EPRA vacancy rate of 3.5% (30 June 2018: 4.4%) at period end
§ 3% reversionary potential across the standing portfolio, or 7% across our Dublin city centre
offices

€600 million accretive development pipeline

§ Strategic focus on NAV and income growth through development, supported by robust occupier
demand and disciplined approach to capital allocation
§ Building I in Central Park, totalling 9,400 square metres (101,000 square feet) of office space,
completing in Q1 2019. Top two floors reserved, with positive letting traction
§ Further €30 million invested in office and logistics developments (€19.9 million in offices, €10.1
million in logistics)
§ Completion of a unit at Horizon Logistics Park for a luxury goods retailer, adding €1.45 million
to annual contracted rent
§ Construction of purpose-built unit of 10,700 square metres (115,000 square feet) for Bunzl
commenced in February 2019
§ Two further units at Horizon Logistics Park due to complete in Q2 2019 (5,400 square
metres/58,000 square feet)
§ €37 million of potential future rent from extensive future development pipeline, with a projected
end value of €600 million

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Strategic focus on prime offices and logistics
§ Portfolio dominated by offices (88% by value) and logistics (7% by value)
§ Target allocation to logistics in excess of 20% over the medium-to-longer term as Horizon
Logistics Park, Ireland’s premier logistics location, is developed out
§ Nine acres of additional land acquired at Horizon Logistics Park since 30 June 2018

Gary Kennedy, Chairman of Green REIT plc, commented: “The Company is well positioned to take
advantage of further opportunities and to continue to deliver attractive risk-adjusted returns to its
shareholders, underpinned by our high quality and well-located portfolio, the security of our income
and our exciting development pipeline. While we remain alert to the prevailing wider economic and
political uncertainty, Irish commercial real estate, particularly our sectors of focus, offices and logistics,
continues to perform well.”

Pat Gunne, Chief Executive of Green Property REIT Ventures, added: “The quality of our portfolio
has never been stronger, and we continue to exploit value-accretive opportunities in both logistics
and offices, through our active asset management and development programmes. The market remains
supportive of our strategy, with prevailing values well-underpinned by healthy overseas and domestic
demand for prime Irish commercial real estate.”

Contacts

Green Property REIT Ventures DAC (Investment Manager to the Company)

Niall O’Buachalla, COO
+353 (0) 1 241 8400

FTI Consulting (IR and PR to the Company)

Dublin London
+353 (0) 1 765 0800 +44 (0) 20 3727 1000
Jonathan Neilan Giles Barrie
Patrick Berkery Claire Turvey

greenreit@fticonsulting.com

Note on Forward-looking Statements

This Announcement contains forward-looking statements, which are subject to risks and uncertainties because they relate to
expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning
matters that are not historical facts. Such forward-looking statements involve known and unknown risks, uncertainties and other
factors, which may cause the actual results, performance or achievements of the Company or the industry in which it operates,
to be materially different from any future results, performance or achievements expressed or implied by such forward-looking
statements. The forward-looking statements referred to in this paragraph speak only as at the date of this Announcement. The
Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to
reflect future events, circumstances, unanticipated events, new information or otherwise except as required by law or by any
appropriate regulatory authority.

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CHAIRMAN’S UPDATE
Our strategy continues to deliver attractive risk-adjusted returns to shareholders through active asset
management and property development, with a disciplined level of gearing.

Summary financial information

Balance Sheet: 31 December 30 June Change
2018 2018
Total property value €1,483.2m €1,424.4m +4.1%
EPRA net assets €1,279.5m €1,251.2m +2.3%
EPRA NAV per share 182.9 cent 178.9 cent +2.3%
Property LTV 17.5% 15.5% +2.0 pps
Income Statement: 6 months 6 months Change
ended 31 ended 31
December December
2018 2017
Rental income (excluding service €34.4m €33.7m +2.1%
charge income)
Profit for the period €45.6m €53.0m -14.0%
EPRA Earnings €21.7m €22.1m -1.8%
EPS – Basic 6.5 cent 7.7 cent -14.6%
EPS – EPRA 3.1 cent 3.2 cent -2.5%
(Note: Change calculations are based on unrounded actual numbers)

Further progress with office and logistics developments delivering returns and income growth
We look forward to the completion of Building I in Central Park in South Dublin in the first quarter of
2019, adding a further 9,400 square metres (101,000 square feet) to the business park. The top two floors
of the 7-storey building are now reserved for a tenant, with a lease due to be signed imminently. Subject
to further letting progress at Building I, we will assess further development opportunities at our
landholding in Central Park, which is capable of accommodating an additional 37,200 square metres
(400,000 square feet) of lettable office space, which could add an estimated €12 million to the
Company’s annual rent.

Our development programme continues at a good pace at Horizon Logistics Park, which is beside Dublin
Airport and considered the prime logistics location in Ireland, where our landholding comprises
approximately 310 acres. Our strategy to develop a logistics park of international quality and scale
through a moderate level of speculative development is progressing, while at the same time competing
for larger purpose-built units. The new 10,700 square metre (115,000 square foot) unit for Bunzl, where
construction commenced in February 2019, is a case in point.

Firm focus on driving income quality and security

We continue to grow the Company’s contracted rent, focusing on the quality and security of our income,
with a strong WAULT of 8.7 years at 31 December 2018, and with 97% occupancy, all of which supports
our progressive dividend strategy and the value of the Company’s properties.

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We saw a strong rental performance in the six month period, where despite the sale of Westend Retail
Park in June 2018, which had a contracted annual rent of €8.5 million, rental income of €34.4 million
was 2.1% ahead of the same period in 2017 (€33.7 million). The loss of this retail rental income from
Westend was more than offset by the new high quality and more secure rent generated at our office and
logistics development schemes, and from uplifts in rental income achieved through rent reviews.

Dividends
The Board declared a dividend on 18 September 2018, in respect of the year to 30 June 2018, of 2.7 cent
per share, or €18.7 million, which was paid on 19 October 2018, bringing the total dividends paid for
that year to 5.3 cent per share, or 100% of EPRA Earnings. The Board intends to declare a dividend of
2.8 cent per share for the six months to 31 December 2018, equating to 84% of EPRA Earnings for the
period. Our guidance of a dividend of 4% per annum on net asset value post the completion and letting
of our current development programme remains unchanged.

Ireland – continued economic growth amid Brexit uncertainty

Amid the geopolitical uncertainty that prevails, the Irish economy continues to grow at a pace well ahead
of the Eurozone average. Core domestic demand growth of 4.8% is estimated for 2018, up from 2.6%
in 2017, with a forecast for 4.5% growth in 2019 and 3.7% in 2020 (source: Goodbody). These estimates
assume an orderly Brexit, however, which is far from being a certain outcome at this point.

The labour market, a key driver of Irish economic growth, continues to strengthen, with employment
growth estimated at 2.3% for 2018. There are now more people employed in Ireland than at any other
time, with the unemployment rate at 5.7%, down from 6.4% in January 2018, and with an increase in
net inward migration supporting labour market demand. FDI job creation remains strong, particularly
among US technology companies in Dublin, attracted to Ireland by its EU market access, stable
corporate tax environment and its attractiveness as a workplace for overseas talent.

Eurozone interest rates remain low and are expected to do so for some time, with the Irish government
10 year bond rate currently at below 90 basis points, a level which remains supportive of Irish
commercial property yields and values.

Moderate gearing, robust balance sheet

Having reduced our loan-to-value (‘LTV’) level to 15.5% at 30 June 2018 through the sale of Westend
Retail Park in June 2018, borrowings increased by €38.3 million in the six months to 31 December 2018
as we continued to debt finance the Company’s capital expenditure on our developments and our
standing assets. Our LTV at 31 December 2018 is still modest at 17.5%, with €101 million of undrawn
facilities for investment in our developments in progress and for future development at Central Park and
Horizon Logistics Park.

In September 2018 we put in place a new revolving credit facility, which matures in September 2022
and which includes an option to extend by a further year. This low cost and flexible financing is being
used to fund our development costs in the offices and logistics sectors, our two key areas of focus.

Our intended gearing level at this point in the cycle continues to be 25%, post the completion and letting
of our development assets, but as previously stated we remain opportunistic in our approach, which
could lead to higher or lower gearing levels depending upon market conditions and investment
opportunities.

4
Outlook
Our focus remains on delivering attractive risk-adjusted returns to shareholders, with moderate levels of
gearing and disciplined speculative property development. We remain committed to our progressive
dividend policy, underpinned by our high quality and well-located portfolio, with secure income from
leases to the highest calibre tenants.

The occupier market in our key sectors of offices and logistics remains strong, and we continue to
operate in a stable capital markets environment which is attracting increasing levels of core international
capital, attracted by the relative stability of lease structures and income, the quality of commercial real
estate and prospects for growth.

We report these results at a time of heightened geopolitical uncertainty globally. While we have seen
some positive impacts from Brexit on the Dublin office market, and within our property portfolio, the
ultimate outcome of Brexit may potentially be a headwind for the Irish economy. We remain alert to
this possibility, but despite this uncertainty we look forward to the period ahead with cautious optimism
and believe that the Company continues to be well positioned to take advantage of further opportunities
and to deliver attractive risk-adjusted returns to its shareholders.

Gary Kennedy
Chairman
26 February 2019

5
BUSINESS REVIEW
1. PORTFOLIO SUMMARY (see Appendix 1 for further analysis)
§ €74.4 million annual contracted rent (€71.7 million at 30 June 2018)
§ 3.5% EPRA vacancy rate (30 June 2018: 4.4%)
§ 8.7 years WAULT across the portfolio (8.8 years at 30 June 2018)
§ Dublin focus (95% by portfolio value), with our prime office building in Cork city our only non-
Dublin asset
§ Portfolio dominated by high grade office assets in Dublin’s core CBD and South Dublin
§ Value by sector: 88% offices, 7% logistics, 4% mixed use and <1% retail
§ Portfolio is 3% reversionary at 31 December 2018
§ Diversified tenant base: 25% banking, 23% other financial services, 20% TMT, 6% logistics, 6%
flexible offices, 5% retail trade, 5% government and 4% professional services
§ Top 10 tenants account for 54% of contracted rent, with our largest tenant (AIB) accounting for
13% of the total
§ Yields:

On 31 December 2018 On 30 June 2018

Values Values

Investment Initial Yield¹ 4.8% 4.9%

Portfolio Initial Yield¹ 4.6% 4.6%

¹ Calculated as contracted rent at 31 December 2018/30 June 2018 over the 31 December 2018/30 June 2018 valuation plus
notional purchaser’s costs

2. PORTFOLIO VALUATION
§ Portfolio value €1.48 billion at 31 December 2018 (30 June 2018: €1.42 billion), an increase of
4.1% in the value of assets held throughout the six months to that date, gross of capital expenditure
§ Revaluations of €25.4 million for the six months (2017: €31.3 million), comprising €17.7 million
from investment properties and €7.7 million from developments (2017: €0.4 million from
investments and €30.9 million from developments)
§ Revaluations are net of capital expenditure in the six month period of €33.0 million (2017: €39.8
million), of which €29.9 million (2017: €35.1 million) was incurred on developments and €3.1
million (2017: €4.7 million) on standing assets
§ No disposals in the six months to 31 December 2018
§ Acquisition of five acres of land for €0.4 million at Horizon Logistics Park, with a further four
acres acquired since 31 December 2018

An analysis of the movement in portfolio valuation in the six months to 31 December 2018 is as follows:
Investment
Developments
properties Total
in progress
and lands
€m €m €m
Portfolio value at 30 June 2018 1,409.5 14.9 1,424.4
Capital expenditure 3.1 29.9 33.0
Lands acquired 0.4 - 0.4
Reclassifications 49.1 (49.1) -
Property value uplifts 17.7 7.7 25.4
Portfolio value at 31 December 2018 1,479.8 3.4 1,483.2

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The main individual valuation movements in the six months to 31 December 2018 were:

§ One Molesworth Street, Dublin 2 (prime city centre office): Gross increase in value by €8.7
million/7.9% on 30 June 2018 valuation, to €119.2 million, or €3.8 million/3.4% net of capital
expenditure of €5 million in the six month period. The uplift in value in the period reflects the
letting to Banking Payments Federation Ireland completed in September 2018, rent free periods
reducing and a slight reduction in equivalent yield by 2 basis points, from 4.10% to 4.08%,
between June and December 2018;
§ 5 Harcourt Road, Dublin 2 (prime city centre office): Gross increase in value by €4.4
million/8.1% on 30 June 2018 valuation, to €58.6 million, or €3.1 million/5.6% net of capital
expenditure of €1.3 million in the six month period. The uplift in value in the period reflects a
reduction in the equivalent yield by 10 basis points, from 4.25% to 4.15%, between June and
December 2018, driven by comparable evidence;
§ Fitzwilliam Hall, Dublin 2 (city centre serviced office): Valuation increased by €2.7
million/11.3% in the six months to 31 December 2018, to €26.9 million, as a result of the
settlement of a rent review during the period at a rent which is 7% higher than the valuer’s
ERV, and 91% higher than the previous passing rent. The crystallisation of this significant
reversion brought about a reduction in the equivalent yield from 5% to 4.8%;
§ Central Park, Dublin 18 (prime suburban offices): the total value of the Central Park estate
increased by €17.9 million/4% on the 30 June 2018 valuation, from €442.2 million to €460.1
million. Net of capital expenditure in the period of €14.3 million, the increase in the total value
of the estate was €3.6 million/1.0%, reflecting relatively stable rental values and yields. With
regard to Building I, which is due to complete in Q1 2019, its value increased by €18 million,
from €15 million at 30 June 2018 to €33 million at 31 December 2018, gross of capital
expenditure in the period of €10 million, or by €8 million net of this capital expenditure;
§ George’s Quay Estate, Dublin 2 (prime city centre office): the valuation of the Company’s
largest single holding in Dublin city centre increased by €6.7 million/1.8% from €361.3 million
at 30 June 2018 to €368 million at 31 December 2018, with rental values stable and a minor
reduction in equivalent yields in the six month period. Net of capital expenditure of €1.9 million
in the period, mainly on fit-out, the increase in valuation was 1.3%;
§ Horizon Logistics Park (prime logistics at Dublin Airport): total value increased by €13.6
million/15.2% gross of capital expenditure in the period, from €90 million to €103.6 million.
Net of capital expenditure in the period of €10.7 million, including €0.4 million for land
acquisition, the increase in value between 30 June 2018 and 31 December 2018 was €3.0
million, or 3.3%;
§ One Albert Quay, Cork (prime city centre office): €4.5 million/5.8% valuation increase in
the six months to 31 December 2018, from €76.8 million to €81.3 million, due mainly to yield
compression. The equivalent yield reduced by 25 basis points from 5.75% to 5.50% between
valuation dates, based on recent comparative evidence. In addition, almost all of the rent free
periods granted to tenants have now expired.

7
PORTFOLIO VALUATION ANALYSIS

Annual
Movement Movement Movement
December December June to December to
2017 2017 to June 2018 December 2018 December
Valuation June 2018 Valuation 2018 Valuation 2018
€m €m €m
Offices
Dublin City Centre 681.0 10.4% 751.7 3.0% 774.5 13.7%
Dublin Suburbs 420.3 5.2% 442.2 4.0% 460.1 9.5%
Cork 73.1 5.1% 76.8 5.8% 81.3 11.2%
Total Offices 1,174.4 8.2% 1,270.7 3.6% 1,315.9 12.0%
Mixed Use 57.4 0.8% 57.7 0.1% 57.8 0.7%
Logistics 61.4 46.5% 90.0 15.2% 103.6 68.7%
Retail 5.9 0.5% 6.0 (0.2%) 5.9 0.3%
Total - Assets Held Throughout the Period 1,299.1 9.6% 1,424.4 4.1% 1,483.2 14.2%
Disposals in the Period:
Westend Retail Park 147.1

Per Statement of Financial Position 1,446.2 1,424.4 1,483.2

Note: the % movements above do not reflect capital expenditure incurred in the respective accounting periods. Capital expenditure in the six month period to 31 December
2018 is set out in Note 9.

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 3. ASSET MANAGEMENT

3.1 New Lettings

In the six months to 31 December 2018, the Company entered into new leases and licences with total
new contracted rent of €2.9 million per annum, across a total of 12,900 square metres (139,100 square
feet) of lettable space, as summarised below:

Property Tenant Lettable Rent Total Lease Lease Rent

area annual term break free
rent year months
Sq Ft € psf €'000 Years
Horizon Logistics Bunzl Ireland 115,000 €9.95 1,144 20 12 6
Park, Dublin Ltd
Airport
George’s Court, Huawei Ireland 16,332 €54 922 15 10 4
Dublin 2 Ltd
One Molesworth Banking 7,809 €65 520 25 - 12
Street, Dublin 2 Payments
Federation
Ireland
Others 350
Total 139,141 2,936

Details of the principal new lettings in the six months to 31 December 2018 are as follows:

I. Horizon Logistics Park – Bunzl Ireland Limited - €1.14 million contracted annual rent
(when built)
In September 2018 we signed an agreement with Bunzl Ireland Limited (part of the Bunzl plc
group), subject to planning permission, to construct a unit of 10,700 square metres (115,000
square feet) for them. This will add €1.14 million to the Company’s annual rent when completed
in the first quarter of 2020. Planning permission was subsequently obtained and construction
commenced in mid-February 2019.

II. George’s Court, Dublin 2 – Huawei - €0.92 million contracted annual rent
In September 2018 we signed a new lease with Huawei Ireland Limited for the fourth floor at
George’s Court in Dublin 2, comprising 1,520 square metres (16,332 square feet) on a 15 year
lease with a break in year 10. The annual rent is €0.92 million, with a rent free period of four
months to December 2018.

III. One Molesworth Street, Dublin 2 - Banking Payments Federation Ireland - €0.52 million
contracted annual rent
In September 2018, the Company signed an agreement with Banking Payments Federation
Ireland to lease the balance of the third floor, comprising 725 square metres (7,809 square feet),
on a 25 year lease with no break options. The annual rent is €0.52 million, with a rent-free
period of 12 months from September 2018. This letting brought the office element of the
building to full occupancy.

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3.2 Rent reviews
During the six months to 31 December 2018, we completed four rent reviews, delivering a 37% uplift
of 37% (€0.8 million) to annual rent. The new rents achieved overall were 9.5% ahead of ERV at 30
June 2018. The rent reviews related to 8,630 square metres (92,900 square feet) of lettable space, of
which 4,500 square metres (48,300 square feet) is city centre office space and 4,140 square metres
(44,600 square feet) is a logistics unit at Horizon Logistics Park.

3.3 Acquisitions - additional lands at Horizon Logistics Park, Dublin Airport

In September 2018 the Company acquired a further 5 acres of land adjacent to its existing holding at
Horizon Logistics Park at Dublin Airport, for a contract price of €385,000. Subsequent to the financial
period end the Company acquired an additional 4 acres for a contract price of €325,000.

The acquisition brought the Company’s total land holding at Horizon Logistics Park to approximately
310 acres, of which an estimated 263 acres is capable of development.

4. DEVELOPMENT PROJECTS

A summary of the Company’s development schemes completed in the period and currently on site is as
follows:

Capex to
Lettable
Property Use Delivery Complete
Area (Sq Ft)
(€m)
Completed in the Period
Unit D3, Horizon Logistics Park Logistics 47,750 Q3 2018 0.4

On Site at 31 December 2018

Building I, Central Park Office 101,000 Q1 2019 10.9
Units D6, Horizon Logistics Park Logistics 24,000 Q2 2019 1.5
Units D7, Horizon Logistics Park Logistics 34,000 Q2 2019 2.3
Total - On Site at 31 December 2018 159,000 14.7
Buildings completed in Prior Periods 16.1
TOTAL 31.2

Horizon Logistics Park, Dublin Airport

We completed a purpose-built unit for a luxury goods retailer in September 2018, which added €1.45
million to our contracted rent. Encouraged by the strength in occupier demand that we are seeing for
high quality modern logistics units, we commenced the construction of two further speculative units in
August 2018, totalling 5,400 square metres (58,000 square feet) of lettable space, which are due for
completion in the second quarter of 2019.

The pre-letting to Bunzl, described above, and the future letting of the two additional speculative units
under construction, will increase the annual rent at Horizon Logistics Park to an estimated €6.3 million.
The letting momentum at Horizon Logistics Park reflects the confidence of high calibre tenants in the
park and its superior location, as well as the outlook for the logistics sector in Ireland. It also bodes well
for our overall strategy of organically growing value and income through the supply of modern, high
quality units at what will be Ireland’s premier logistics park.

10
 5. FINANCIAL REVIEW

Alternative performance measures

Various alternative performance measures, principally the best practice measures as defined by EPRA,
are included in these interim results. They are included as, like other listed property companies, we
believe that they are useful to readers of financial statements of real estate companies. Alongside the
measures are, where applicable, their definition, calculations and an explanation of their relevance.

Total profit of €45.6 million for the period (2017: €53.0 million)
Total profit for the six months to 31 December 2018 was €45.6 million (December 2017: €53.0 million),
and comprised EPRA Earnings (or net rental profit) of €21.7 million (2017: €22.1 million) and fair value
movements of €23.9 million (2017: €30.9 million).

On a per-share basis, the basic EPS for the period was 6.5 cent (2017: 7.7 cent), with EPRA EPS of 3.1
cent (2017: 3.2 cent).

Looking at EPRA Earnings, which at €21.7 million were €0.4 million/1.8% lower, period-on-period,
rental income was marginally ahead by €0.7 million, while operating and finance costs were €1.1 million
higher, period-on-period.

The €0.7 million increase in rental income over the same period in the prior year was despite the sale in
June 2018 of Westend Retail Park, which contributed €4.3 million to rent in the six months to 31
December 2017 and nothing in the current period following its disposal. The loss of this rental income
was largely offset by contributions of €3.7 million to rental income from developments completed in the
financial year ended 30 June 2018, and €0.4 million from Unit D3 in Horizon Logistics Park, which was
completed in the period to 31 December 2018. In addition, the positive contribution from rent review
settlements (€1.5 million, including back rent) and from the acquisition of the minority interest in Mount
Street (€0.4 million) outweighed the net impact of vacant space at the George’s Quay Estate (€0.7
million).

A summary of the drivers of rental income between the two periods is as follows:
€'000
Gross Rent - 6 months to 31 December 2017 33,682
Disposals in FY 2018 - income effect (4,550)
Impact of vacancy at George's Quay Estate (741)
Developments Completed in FY 18 - new income 3,670
Developments Completed in FY 19 - new income 397
Rent reviews settled - additional income 1,524
Acquisitions in FY 2018 - income effect 349
Other 69
Gross Rent - 6 months to 31 December 2018 34,400

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Gross and net rental income is analysed as follows (excluding service charge income and expenditure):

6 months to 31 December 2018 2017

€'000 €'000
Billed Rental Income 32,863 27,186
Spreading of Lease Incentives 1,537 6,496
Gross rental and related income 34,400 33,682
Property Operating Expenses (1,554) (1,306)
Net rental income 32,846 32,376

Cost analysis:
Total costs were €1.1 million higher than in the same period in 2017, summarised as follows:

§ Property outgoings: Property outgoings of €1.55 million were €0.24 million/19% higher than
the same period in 2017 (€1.31 million), due mainly to an increase in vacancy-related costs at
George’s Quay House and George’s Court office buildings in Dublin city centre, and vacancy-
related costs at One Molesworth Street as the building was being leased up. These cost increases
were offset by savings on running costs of the apartments at Arena Centre which were sold in
October 2017, and Westend Retail Park, sold in June 2018.
§ Administrative expenses: Administrative expenses of €1.1 million were in line with the same
period in the prior year, which were also €1.1 million.
§ Investment Manager fees: The base fee charged in the period was €6.3 million (2017: €5.8
million), with the increase in the fee reflecting the increased EPRA NAV of the Company on
which the base fee is calculated. The base fee is calculated and paid calendar quarterly in cash
on EPRA NAV at quarter end, on the basis of 1% per annum of EPRA NAV. No provision for
a performance fee has been made at 31 December 2018, as the directors do not believe that a
performance fee will be payable for the financial year ending 30 June 2019.
§ Finance costs: Finance costs of €3.7 million for the period were €0.4 million higher than the
same period in 2017, with loan interest cost lower by €0.3 million, due largely to the application
of the Westend Retail Park sale proceeds to reduce the RCF balance, while financing costs were
€0.5 million higher due to a new RCF put in place in September 2018, with unamortised costs
on the previous RCF being written off, and a higher level of commitment fees due to the reduced
RCF balance following the sale of Westend Retail Park. The Company’s interest rate swaps on
€200 million of its debt came into force in October 2018, with swap interest costs of €0.2
million in the six months to 31 December 2018 (2017: nil).

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A reconciliation of IFRS earnings and EPS to EPRA Earnings and EPRA EPS is as follows:

December December December December

2018 2018 2017 2017
€’000 Cent per €’000 Cent per
share share
Earnings per IFRS 45,616 6.5 53,045 7.7
income statement
EPRA adjustment – (25,358) (3.6) (31,288) (4.5)
fair value movement
on properties
EPRA adjustment – 1,440 0.2 352 0.0
fair value movement
on financial
instruments
EPRA Earnings 21,698 3.1 22,109 3.2

2.1% growth in IFRS NAV to €1.28 billion

The Company’s IFRS NAV grew by 2.1% in the six month period, from €1,251.6 million to €1,278.5
million, or from 180.3 cent per share to 182.8 cent per share. EPRA NAV per share grew by 2.3% in the
period, from 178.9 cent to 182.9 cent. This growth is net of dividends paid in October 2018 of €18.7
million, or 2.7 cent per share, in respect of the six months to 30 June 2018. The growth in EPRA NAV
in the six months to 31 December 2018, excluding these dividends paid, was 3.7%.

The main drivers of the growth in IFRS NAV in the six months to 31 December 2018 are analysed as
follows, with a reconciliation of IFRS Net Assets to EPRA Net Assets:

€m
IFRS Net Assets at 30 June 2018 1,251.6
Investment properties revaluation 25.4
Swap revaluations (1.5)
Net rental profit 21.7
Dividends paid (18.7)
IFRS Net Assets at 31 December 2018 1,278.5
Addback: Interest rate swap liability 1.0
EPRA Net Assets at 31 December 2018 1,279.5

Please see Appendix 2 for further EPRA Performance Measures.

Total return of 12.6% for the year to 31 December 2018

The total return to shareholders in the year to 31 December 2018, measured as the increase in EPRA
NAV plus dividends paid in the period, was 12.6%, comprising 9.5% from EPRA NAV increase plus
3.1% from dividends paid.

13
Gearing and debt structure
A summary profile of the Company’s debt at 31 December is as follows:

Balance at Interest Annual Property Base

31.12.2018 Cost Interest LTV Maturity Years
€m % per €m %
annum
Central Park facility 150.0 2.0% 3.0 32.6% Jun-21 2.5
Revolving credit facility 109.2 1.8% 2.0 10.7% Sep-22 3.7
Total 259.2 1.9% 5.0 17.5% 3.0

In the event that the Company was to exercise the extension options within its facility agreements the
extended maturity would be as follows:

Extended
Maturity Years

Central Park facility Jun-23 4.5

Revolving credit facility Sep-23 4.7
Total 4.6

The corresponding debt profile at 30 June 2018 was as follows:

Balance at Interest Annual Property

30.06.2018 Cost Interest LTV Maturity Years
€m % per €m %
annum
Central Park facility 150.0 2.0% 3.0 33.9% Jun-21 3.0
Revolving credit facility 70.9 1.7% 1.2 7.2% Dec-18 0.4
Total 220.9 1.9% 4.2 15.5% 2.2

The Company’s gearing level remains low, with property LTV of 17.5% at 31 December 2018 (30 June
2018: 15.5%). During the six months to 31 December 2018 we drew down €38.3 million on the
revolving credit facility to fund our development schemes and portfolio maintenance capital
expenditure. The flexibility and low borrowing cost afforded by the RCF make it an attractive form of
financing for the Company.

New revolving credit facility in place

In September 2018 we put a new RCF in place with Barclays Bank Ireland and with Wells Fargo, with
the following key terms:

§ Limit of €210 million, with optionality to increase to €290 million;

§ Term of four years from September 2018 to September 2022, with the option to extend by a
further year to September 2023;

14
 § Margin of 1.7% per annum when LTV is less than 10%, and 1.8% per annum when LTV exceeds
10%;
§ Commitment fee of 40% of applicable margin; and
§ Barclays and Wells Fargo to participate 50:50.

The other facility that the Company has is with Bank of Ireland and is secured on the Central Park assets.
The facility is fully drawn at €150 million and matures in June 2021, with extendibility to June 2023.

The Company has hedging in place in the form of forward-starting interest rate swaps covering the
period from October 2018 to October 2022, at a blended fixed rate of 0.074% per annum on €200
million. These swaps give the Company certainty around its maximum interest cost on €200 million of
its debt for the period October 2018 to October 2022.

15
OUR MARKET
Economic Overview

Core domestic demand is expected to have been in the order of 4.8% for 2018 when actuals are finalised
(2017: 2.6%). Forecast growth in domestic demand for 2019 is 4.5%, suggesting another strong year
for the Irish economy. To put this in context, the IMF are forecasting global growth for 2019 of 3.5%
and 3.6% in 2020. The main drivers of growth in Ireland in 2018 were consumer spending, business
investment and construction.

The total number of people employed in Ireland reached an all-time high in Q3 of 2018 of 2.3 million
people. The unemployment rate as at January 2019 was 5.7%, down from 6.4% at the end of 2017, and
it continues to trend downwards towards full employment (estimated to be 4.5%). The rate of
employment growth for 2018 is estimated at 2.3%, and is forecast to be 2.5% for 2019.

2018 was another strong year for Foreign Direct Investment (‘FDI’) into Ireland and for job growth in
FDI businesses. IDA Ireland, the state agency responsible for attracting FDI to Ireland, announced the
creation of 14,040 net new FDI jobs in 2018, its best year since 2000. There are now 230,000 people,
or 10% of the total workforce, employed in FDI-related businesses. Companies from USA account for
approximately three quarters of this employment.

Consumer price inflation remains muted at 0.5% for 2018, although it is set to rise to 0.9% in 2019.
Looking ahead, given the forecast for employment growth of 2.5% in 2019 and for wage inflation of
3%, the outlook for consumer spending continues to be positive.

Tourism figures in 2018 were up 6.9% on 2017 and reached a record 10.6 million visitors, a positive
for the retail, hotel and food and beverage sectors. Interestingly, 35.4% of all visitors came from the
UK, despite Brexit uncertainty and weaker sterling, 35.9% came from Europe (excluding the UK), 22%
from the US, 6.2% from Asia Pacific and 0.5% from other areas.

Ireland recorded a trade surplus of €4.8 billion in November 2018, up from €3.6 billion in the same
month in 2017. Considering the January to November 2018 period, the trade surplus widened to €47.3
billion, from EUR 40.4 billion in the same period in 2017, as exports grew 14% to €128.5 billion and
imports rose 12.3% to €81.2 billion.

It is anticipated that there will be close to a balanced budget in Ireland in 2018 and 2019. Given this
improvement, it is expected that the Government’s capital spending plan will increase by 30% in 2019,
following a 24% increase in 2018. Government debt to GDP continues to contract, standing at an
estimated 63% at the end of 2018, below the Eurozone average of 98%.

New housing completions in Ireland reached an estimated 18,800 units in 2018, an increase of 30% on
2017 levels, and are forecast to increase to 22,000 units in 2019. This is still well behind current demand
levels and problems remain to be resolved around viability, breadth of activity and affordability.

16
The most recent Tender Price Index (SCSI) shows that construction tender prices continue to rise
steadily. The first half of 2018 saw an increase of 4% and the forecast for the second half would suggest
that full year inflation will be in the order of 7.4%.

The impact that Brexit is likely to have on the Irish economy is still very uncertain, and will remain as
such until we know whether we will see a ‘hard Brexit’, with no deal, or a ‘softer Brexit’, involving a
deal between the EU and the UK, and until we understand the potential impact of the final outcome.
The forecasts for the economy outlined above are predicated upon Brexit not having an adverse bearing
on the Irish economy in 2019.

Capital Markets

The total investment spend in Ireland in 2018 was €3.8 billion, up 46% on the same period in 2017
(€2.6 billion). One of the notable reasons for the strong increase in transactional activity was an increase
in transactions in the Private Rental Sector (‘PRS’). In 2017, PRS comprised 12% of total investment,
which increased to 30% in 2018. Demand for the office sector remained strong, and office transactions
accounted for 41% of total investment. Investment into retail, however, saw a sharp reduction in
demand, down from 31% of the total invested in 2017 to 14% in 2018. While demand for logistics
remains strong, it is still a small component of total investment, at 3.3%.

Sources of capital continue to diversify geographically, with the emergence of Asian capital in the
market in 2018. That said, international buyers are predominantly focused on prime assets and locations,
resulting in a divergence in demand and pricing between prime and secondary real estate. A
geographical analysis of investors in the Irish market in 2018 is as follows:

Source % of total
invested in 2018
Ireland 35%
USA 14%
Germany 11%
UK 7%
South Korea 5%
Hong Kong 5%
Other 9%
Undisclosed/unknown 14%

One of the other notable characteristics of the market in 2018 was the number of large transactions.
Over the year there were 21 deals greater than €50 million, and of these, 11 transactions were over €100
million. This compares with 3 deals over €100 million in 2017. The top ten investment transactions for
2018, representing 37% of total investment, were as follows:

17
Top 10 investment transactions in 2018:

Property Sector Price Purchaser Origin

(€m)
Heuston South Quarter, Dublin 8 Office 175 Hutchinson Hong Kong

Dublin Landings, Dublin 1 Office 165 Triuva Germany

Swap of 40 Molesworth Street & Office 160 IPUT/New Ireland Ireland

Deloitte Hatch Street.
Chatham & King St, Dublin 2 Mixed 155 Hines US
use
Westend Retail Park, Dublin 15 Retail 148 DWS Deutsche Asset Wealth Germany
Clongriffin, Dublin 13 PRS 140 Tristan Capital UK
Fernbank, Churchtown, Dublin 14 PRS 139 Irish Life Ireland

The Grange, Stillorgan, Co. PRS 126 Kennedy Wilson US

Dublin
The Beckett Building, East Road, Office 107 KanAm South Korea
Dublin 3
6 Hanover Quay, Dublin 2 Office 101 Carysford Capital Ireland

Total 1,416

Prime Equivalent Yield – some yield compression evident

Sector Yield Trending

Office - Prime CBD Dublin 4.00% Stronger

Offices - Prime Dublin South Suburbs 5.00% Stable
Offices - Prime CBD Cork 5.50% Stronger
Prime Dublin Logistics 5.10% Stronger
Retail - Prime Dublin High Street 3.25% Weaker
Retail - Prime Retail Warehouse 5.00% Stable
(Source: CBRE, February 2019)

At the start of 2018 we saw yields for prime offices move in to 4%, and as the year progressed,
transactional evidence resulted in yields contracting for prime Dublin South Suburbs, prime CBD Cork
and for prime Dublin logistics. Yields for offices in CBD Dublin and Cork, as well as prime Dublin
logistics, are trending stronger, indicating solid demand from multiple capital sources. The retail sector
has seen some slippage, however, with the high street and the sector generally trending weaker.

18
Property Returns – strong total returns at 9.1%for Ireland in 2018

The MSCI index recorded total returns for the year to December 2018 for Ireland at 9.1% across all
property sectors (2017: 6.4%). Income accounted for 4.8% of the return and Capital Growth for 4.1%.
Of the traditional sectors, Industrial/Logistics was the outperformer with a total return of 12.4%
followed by offices 9.3% and retail at 6.7%.

Occupier Markets

The office leasing market had another record year of tenant demand. Gross take-up in 2018 in Dublin
offices reached 363,060 square metres (3.9 million square feet). This is up 9.6% on 2017 levels (330,000
square metres/3.56 million square feet) and compares to a 10-year average of 185,800 square metres (2
million square feet).

The top 10 Dublin office lettings in 2018 were as follows:

Tenant Building Location Square Square % of Total

Metres Feet 2018 Gross
(000) (000) Take-up
Facebook AIB Bank Centre Dublin 4 81 870 22.3%
Google Bolands Quay, Dublin 4 22 239 6.2%
Barrow Street
LinkedIn One Wilton Terrace Dublin 2 14 154 3.9%
Europe
WeWork Charlemont Dublin2 11 120 3.1%
Exchange, Block D
Hubspot 1 Sir John Dublin2 11 116 3.1%
Rogerson’s Quay
IDA 3 Park Place, Hatch Dublin 2 11 115 3.1%
Street
WeWork No.2 Dublin Dublin 1 10 104 2.6%
Landings
WeWork One Central Plaza, Dublin 2 7 74 1.8%
Dame Street
Google 1 Grand Canal Quay Dublin 2 5 58 1.6%
Grand Canal Dock
WeWork 5 Harcourt Road Dublin 2 5 50 1.3%
Top 10 Deals 177 1,900 49%

The technology sector continues to dominate the letting market in Dublin, accounting for six of the top
ten lettings above, and 51% of total gross take-up in Dublin for 2018 (36.5% in 2017).

19
Take-up by sector for Greater Dublin for 2018 was as follows:

Sector % of
Gross
Take-up
Technology 51%
Business Services 18%
Financial 10%
Public Sector 8%
Manufacturing and Energy 7%
Consumer Services & Leisure 3%
Professional 2%
Other 1%
Total 100%

Take-up in the Dublin South Suburbs reached 67,120 square metres (722,472 square feet) in 2018,
accounting for 18% of the total leasing activity in Greater Dublin.

Take-up by sector in the Dublin South Suburbs in 2018 was as follows:

Sector % of
Gross
Take-up
Technology 38%
Manufacturing and Energy 17%
Business Services 15%
Public Sector 14%
Financial 12%
Other 2%
Consumer Services and Leisure 1%
Professional 1%
Total 100%

As we commence 2019, tenant demand remains strong with 139,300 square metres (1.5 million square
feet) of lettings currently in legal due diligence and a further 323,300 square metres (3.5 million square
feet) of current demand.

The vacancy rate for Greater Dublin remains unchanged at 6.1% when compared with June 2018. The
Dublin 2/4 vacancy rate is 6.3% and the Grade A vacancy rate in Dublin 2/4 is 7.2% (December 2017:
5.4%). In Dublin South Suburbs the overall vacancy rate is 5.6% (December 2017: 6.7%) and the Grade
A vacancy rate is currently 4.6% (December 2017: 6.7%).

Finally, prime Dublin office rents remain stable at €700 per square metre (€65 per square foot). In
Dublin South Suburbs, prime office rents currently stand at €306 per square metre (€28.50 per square
foot).

20
There is currently 424,000 square metres (4.6 million square feet) by gross development area of office
space under construction in Dublin city centre across 35 schemes, up marginally from 406,200 square
metres (4.4 million square feet) in February 2018. In 2019, 145,000 square metres (1.6 million square
feet) is due for completion, approximately 64% of which is already let. In addition, 213,600 square
meters (2.3 million square feet) of new office development delivered in 2018.

There is currently 87,700 square metres (944,000 square feet) of new offices under construction in eight
projects in the suburbs, 39% of which has been pre-let.

Cork Office Market

The Cork office market was very active during 2018, recording an estimated 39,950 square metres
(430,000 square feet) of total take-up, more than double the 19,045 square metres (205,000 square feet)
in 2017.

The vacancy rate in Cork at the end of Q3 2018 stood at 9.8% (Feb 2018: 10.5%). There is no current
standing vacant office accommodation that would be classed as Grade A in the city centre, so the
vacancy rate comprises mostly older buildings. There is, however, new Grade A office development
under construction, with occupiers looking for modern space having no option but to take mid-
development lettings in order to secure modern accommodation.

While there is currently 278,000 square metres (3 million square feet) of pipeline office development
in Cork, schemes that have actually commenced on site extend to 32,950 square metres (354,670 square
feet). 81% of the office developments are located in the city centre and include Block A Navigation
Square (11,600 square meters/125,000 square feet) and 85 South Mall (4,300 square meters/46,000
square feet), both of which are scheduled to reach practical completion in early 2019.

Prime headline rents in Cork city centre are €350 per square metre (€32.50 per square foot), up from
€323 per square metre (€30 per square foot) at the start of 2018. Recent lettings include:

• 85 South Mall – letting to Forcepoint International Technology Ltd at €350 per square metre
(€32.50 per square foot).
• 85 South Mall – letting to KPMG at €323 per square metre (€30 per square foot).
• Navigation Square, Block A – letting to Clearstream at €350 per square metre (€32.50 per
square foot).

The remainder of Block A and Block B in Navigation Square are expected to seek a rent in the order of
€377 per square metre (€35 per square foot). In addition, it is anticipated that tenant incentives will start
to reduce. Currently the standard is 15 to 18 months’ rent free, which is expected to reduce to 12 to 15
months.

Logistics/Industrial Sector

Across Ireland, take-up in the Logistics/Industrial sector in 2018 was up 22% on 2017, and reached
304,530 square metres (3.3 million square feet). Lettings comprised 69% of total take-up, with sales of

21
units to owner- occupiers comprising the balance. In total there were 178 deals in the year, of which
114 were lettings and 64 were sales.

There is currently tenant demand for 31,000 square metres (333,700 square feet) at this point in the
year.

Vacancy rates in the top 25 modern logistics/industrial estates currently stands at 8%, with 8 out of the
25 estates having no vacancy.

Rents for prime logistics units in Dublin have remained steady at €106 per square metre (€9.85 per
square foot), with some research houses suggesting up to 6.5% rental growth in 2019.

There continues to be good demand from investors for modern logistics units, however the sector still
comprises only 3% of the total investment market. Over the last six months there has been yield
compression in this sector, with prime yields currently at 5.1% and trending stronger.

It is anticipated that demand for modern logistics units will continue to grow as a result of the increase
in e-commerce in Ireland, the strength of the pharmaceutical industry and overall economic growth.
Brexit may also present further opportunities, as would the development of e-commerce order
fulfilment facilities, of which there are none on the island of Ireland.

Sources:
1. CBRE research reports and research department
2. JLL research reports
3. Central Statistics Office website
4. IDA website
5. Investec research
6. Goodbody research
7. Central Bank of Ireland
8. Trading Economics

22
 PRINCIPAL RISKS AND UNCERTAINTIES
The Board takes the view that adequately identifying and managing the risks to achieving our strategic objectives is key to the successful delivery of shareholder returns. The
Board has divided the principal risks into External Risks, over which we have no influence, and Internal Risks, which we can influence, and which are set out below.
External risks
Risks Potential impact Mitigation measures Direction of risk
ñ Cyclical Market - theñ Potential adverse impact on- 95% concentration of our assets in Dublin, the capital city, which Stable - the rate of capital and rental
property market is property values and rental experiences less volatility in a downturn than regional centres in growth for Dublin offices, where our
cyclical and as such levels, impacting on Ireland. Our only non-Dublin asset is in Cork, Ireland’s second city by portfolio is most concentrated, has
values and market shareholder returns. population size. moderated to more stabilised levels.
conditions can be -
volatile. - Our assets are predominantly in prime locations, which are more Both the occupier market and the
resilient in a downturn. investment market for offices and
- logistics continue to perform well,
- 83% of our portfolio by value is Dublin offices, which proved to be underpinned by a strong underlying
the most resilient asset class in the last downturn. real economy in Ireland.
-
- Our retail assets now comprise less than 1% of our portfolio value, The spread between Irish property
following disposals of retail assets over the last 3 years. yields and the risk-free rate remains
- supportive of property values. We
- Our logistics holding is located in close proximity to airport and continue to monitor movements in
motorway infrastructure. interest rates in the EU and
- elsewhere, which could have a
- Our vacancy rate across our income producing properties by ERV is bearing on real estate prices in
low at 3.5%, thereby reducing the leasing risk in the event of a Ireland.
downturn.
- The outcome of Brexit and its impact
ü We continue to focus on capturing the longest lease terms possible on the Irish economy is as yet
from well capitalised and stable tenants so that the security of income unknown.
and cash inflow is optimised.
ü
ü The WAULT of our income is 8.7 years, highlighting the security of
income from our high quality tenants.
ñ Slowdown in ñ Any slowdown or reversalü The Company’s property portfolio is entirely focused on city ñ Stable – the Irish economy continues to
Economic Growth - in the current trajectory of locations, primarily Dublin, as large centres of population have proven perform well, albeit at a more moderate
as a very open economic recovery could to be more resilient economically. and stable growth rate, but well ahead of
economy, the Irish reduce the demand for space ü the Eurozone average. Macroeconomic

23
 Risks Potential impact
economy is highly in our buildings and impactü
dependent on the on rental values and
wider European property values, while
market and indeed the potentially increasing the
world economy. level of tenant default. It
could also have an adverse
impact on the level of
investment in Irish
commercial real estate,
particularly among
international investors.
ñ Dublin office market A slowdown in this sector ü
– overreliance on the globally, and a consequent
technology sector slowdown in the growth rate
of tech companies in
Ireland, particularly US
tech, could lead to a
softening in Dublin office
rents and valuation yields, ü
given the importance of
these companies, which
were responsible for 51% of ü
total gross take-up in Dublin
for 2018 (source: CBRE)
ñ Constrained supply Potential adverse impact on
in the residential immigration, FDI job
sector – potential creation and GDP growth,
adverse impact on with a potential knock-on
growth prospects for effect on the Dublin office
the Dublin office sector, if residential supply
sector. shortages and rising
residential rental levels in
Dublin are not adequately
addressed by increased
supply.
Mitigation measures
The Company targets well capitalised tenants with strong covenants
and maintains a policy of keeping a diversified multi-sectoral tenant
base to avoid over exposure to any one tenant or industry sector.
Our assets are predominantly in prime locations, which are more
resilient in a downturn.
The Company maintains a policy of keeping a diversified multi-
sectoral tenant base to avoid over exposure to any one tenant or
industry sector.
The Company adopts a rigorous approach to evaluating the covenant
strength of prospective tenants, focusing on profitability and cashflow.
At 31 December 2018, 20% of the Company’s contracted annual rent
was from TMT tenants, of which 10% is from Vodafone, a global
telecommunications company.
The Board monitors external risks closely and their potential impact ñ Increased – while levels of new
on achieving the Company’s strategic objectives. The Board also
monitors the forecast levels of residential development and FDI.
24
Direction of risk
indicators around employment growth,
unemployment levels, consumer spending,
business investment and FDI-related job
creation remain positive. However, there
continues to be a heightened level of
geopolitical and economic uncertainty, in
particular around Brexit, and to a lesser
extent around trade wars and the strength
of the world’s largest economies, which
we continue to monitor.
ñ Increased – tech companies comprised
51% of total gross take-up in Dublin for
2018, compared with 36.5% in 2017
(source: CBRE)
residential completions are increasing,
with a 30% increase in 2018 (source:
Goodbody), growth is off a very low base
level and supply continues to lag behind
demand. At the same time, the rates of net
inward migration and urbanisation in
Ireland are accelerating. The full extent of
Brexit relocations and Brexit-related
employment growth has yet to be seen, but
it is likely to further strengthen residential
demand.
 Risks Potential impact Mitigation measures Direction of risk
ñ Speculative Potential adverse impact onü The Board and the Investment Manager monitor market conditions ñ Decreased - overall this risk has reduced
Development Risk – revenue, value and void closely, and have a conservative approach to speculative development. with the lettings completed within our
occupiers do not take costs and on achieving development schemes during the year.
space in our new target shareholder returns on While a property may not be let when a development or refurbishment Also, take-up in the occupational market
developments. capital. commences, the marketing of the building commences well before the remains robust for Dublin offices and
scheduled completion date. prime Dublin logistics, where our
developments are concentrated.
Offices: of the 5 office developments which were commenced
speculatively, 4 of these have been de-risked through lettings, leaving
Building I in Central Park, which is due for completion in Q1 2019, as
the only office development yet to be let. The Board is confident that
the quality and location of this building will attract lettings in the short
to medium term.

Logistics: at Horizon Logistics Park, our strategy is to combine a

moderate level of speculative development with pre-lettings of new
units. At present there are 3 units under construction, 2 of which,
totalling 58,000 sq ft, are being built speculatively, while the third unit
is a purpose-built unit for Bunzl of 115,000 sq ft.
Geopolitical Risk – The ultimate outcome of The Board monitors external risks closely and their potential impact ñ Increased – the outcome of Brexit is still
potential adverse Brexit may have an adverse on achieving the Company’s strategic objectives. To date there has highly uncertain and it is therefore still not
impact from Brexit. impact on the Irish been no notable adverse impact from Brexit on the Irish economy; possible to tell what its impact will be for
economy, depending on however, as we approach March 2019 we are likely to learn more. Ireland and for the Company.
which way it goes, but it
could potentially have a
favourable impact on the
Dublin office sector, some ñ
of which is already evident
in the financial and
technology sectors. As a
very open, small economy,
the uncertainty created by
other geopolitical issues
could adversely impact on
both domestic investment
and FDI, and consequently
on both the real economy

25
Risks Potential impact Mitigation measures Direction of risk
and commercial real estate
in Ireland.

Regulatory Risk – Should the Investment ü The Board and the Audit Committee regularly discuss regulatory ñ Stable.
AIFMD - the Manager cease to be aspects and receive reports from the Investment Manager in respect of
Investment Manager is authorised as an AIFM then AIFMD compliance matters concerning both the Company and the
the authorised AIFM the Company would be Investment Manager. The Investment Manager in turn consults with its
of the Company, under required to appoint a legal adviser and the Company’s sponsor, Davy, who attend meetings
recently adopted EU replacement AIFM and may with the regulator on behalf of the Investment Manager and the
regulations. suffer losses arising from Company respectively.
the transition from its ü
current Investment Manager ü The Company obtains independent legal advice in relation to AIFMD
to another. matters in order to keep abreast of developments and to ensure
compliance by the Company with its obligations under AIFMD.
Cyber Attack Risk A cyber-attack could lead üto The Company engages external specialists to carry out periodic ñ Increased – there has been an increased
potential data breaches or vulnerability and penetration testing on its website, implementing any prevalence in cyber-attacks globally in the
disruption to the Company’s recommendations made. past 12 months.
systems, website and
operations, and to Routine patch upgrades are carried out on the Company’s systems to
reputational damage. safeguard them from attacks.

The Investment Manager has an Information Security Policy

Business An extreme weather
Interruption Risk occurrence could result in
(extreme weather) damage to our buildings
and business interruption
for our tenants if there is
restricted access to our
buildings.
Framework to which it and its staff comply.
Asset emergency procedures are in place.
Asset risk assessments are carried out at the time of acquisition to
assess risks including flood, environmental and health and safety
(where appropriate).
We maintain appropriate insurances across the portfolio.
Increased – there has been a greater
prevalence of extreme weather events in
Ireland of late which were classified as
red weather warnings.
ñ

A Business Continuity Plan is in place.

26
Internal risks
Risks Potential impact ü Mitigation measures Direction of risk
Non-compliance Potential adverse impact on The Company benchmarks its environmental, social and governance Stable.
with environmental reputation, property values (ESG) reporting against industry benchmarks.
legislation and and shareholder returns
sustainability best The Company reviews changes to Irish and EU legislation impacting
practise on environmental and sustainability issues annually.

A Sustainability Report is produced annually (commenced in 2018).

The Company has set a 2021 target for reduction in energy

consumption, water and waste.
ü
Reliance on key Loss of knowledge and ü The Board periodically discusses the retention of key members of staff Stable.
members of the expertise in the event of the with the principals of the Investment Manager, to understand what
Investment Manager departure of certain key measures are used to retain and incentivise them. The Board also
team members of the management periodically discusses succession planning and the ability to replace
team, with the potential for key staff members, with the principals of the Investment Manager.
disruption while they are
being replaced.
Development Potential adverse impact onü The Company only employs blue chip contractors with a strong and Decreased - the Company has successfully
Completion Risk – shareholder returns as a result proven track record and with requisite financial strength. completed four office buildings and
inadequate cost of higher costs and/or delaysü various logistics units, thereby reducing the
oversight and other in delivering new product ü The Company engages what it considers to be the best design team for likelihood of this risk impacting the
engineering/construct into the market. each project, working closely with them to identify any cost overruns business. Building I in Central Park is due
ion risks that could or delays as early as possible. for completion in Q1 of 2019.
delay completion ü
and/or increase costs. ü The Investment Manager closely monitors each project and works
closely with the contractor, attending on site regularly.
ü
ü The Investment Manager’s development team is highly experienced in
developing new buildings.
Development - Potential reputational risk, ü The Investment Manager ensures that all contractors engaged employ Decreased - the Company has successfully
Health and Safety - potential completion delay high standards of health and safety and carry the appropriate levels of completed four office buildings and
with increased and potential financial loss insurance to mitigate any issues which could arise. various logistics units, thereby reducing the
development activity arising from a claim being ü likelihood of this risk impacting the
there is an increased made.

27
risk of an accident ü The Investment Manager is an experienced developer with formalised business. Building I in Central Park is due
which could result in health and safety procedures. for completion in Q1 of 2019.
a significant claim ü ñ
and reputational ü The primary responsibility for health and safety passes from the
damage. Company to the main contractor, with sub-contractors engaged by the
contractor having no privity with the Company.
ü
ü There is adequate insurance cover in place to deal with any claims
which might arise out of claims being made due to incidents.

28
STATEMENT OF DIRECTORS’ RESPONSIBILITIES FOR THE CONDENSED
INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Statement of Directors’ Responsibilities

The Directors confirm to the best of their knowledge that the condensed interim consolidated financial
statements have been prepared in accordance with the Transparency (Directive 2004/109/EC)
Regulations 2007, the Transparency Rules of the Central Bank of Ireland and with IAS 34 Interim
Financial Reporting, as adopted by the EU, and to the best of their knowledge and belief:

a) the condensed interim consolidated financial statements comprising the condensed consolidated
statement of comprehensive income, the condensed consolidated statement of financial position,
the condensed consolidated statement of changes in equity, the condensed consolidated statement
of cash flows and related notes have been prepared in accordance with IAS 34 Interim Financial
Reporting as adopted by the EU.

b) the interim management report includes a fair review of the information required by:

• Regulation 8(2) of the Transparency (Directive 2004/109/EC) Regulations 2007, being an

indication of important events that have occurred during the period from 1 July 2018 to 31
December 2018 and their impact on the condensed interim consolidated financial statements,
and a description of the principal risks and uncertainties for the remaining six months of the
financial year; and

• Regulation 8(3) of the Transparency (Directive 2004/109/EC) Regulations 2007, being related
party transactions that have taken place during the period from 1 July 2018 to 31 December
2018 and that have materially affected the financial position or performance of the entity
during the period; and any changes in the related party transactions described in the last
annual report that could do so.

Signed on behalf of the Board

Gary Kennedy Jerome Kennedy 26 February 2019

Chairman Director

29
Independent review report to Green REIT plc
Report on the condensed consolidated half year financial statements

Our conclusion
We have reviewed Green REIT plc’s condensed consolidated half year financial statements (the “interim financial
statements”) in the half year report of Green REIT plc for the six month period ended 31 December 2018. Based on
our review, nothing has come to our attention that causes us to believe that the interim financial statements are not
prepared, in all material respects, in accordance with International Accounting Standard 34, ‘Interim Financial
Reporting’, as adopted by the European Union and the Transparency (Directive 2004/109/EC) Regulations 2007 and
the Transparency Rules of the Central Bank of Ireland.

What we have reviewed

The interim financial statements, comprise:
• the condensed consolidated statement of financial position as at 31 December 2018;
• the condensed consolidated statement of comprehensive income for the period then ended;
• the condensed consolidated statement of changes in equity for the period then ended;
• the condensed consolidated statement of cash flows for the period then ended; and
• the explanatory notes to the condensed consolidated half year financial statements.

The interim financial statements included in the half year report have been prepared in accordance with International
Accounting Standard 34, ‘Interim Financial Reporting’, as adopted by the European Union and the Transparency
(Directive 2004/109/EC) Regulations 2007 and the Transparency Rules of the Central Bank of Ireland.
As disclosed in note 2 to the interim financial statements, the financial reporting framework that has been applied in
the preparation of the full annual financial statements of the group is applicable law and International Financial
Reporting Standards (IFRSs) as adopted by the European Union.

Responsibilities for the interim financial statements and the review

Our responsibilities and those of the directors

The half year report, including the interim financial statements, is the responsibility of, and has been approved by, the
directors. The directors are responsible for preparing the half year report in accordance with the Transparency
(Directive 2004/109/EC) Regulations 2007 and the Transparency Rules of the Central Bank of Ireland.

Our responsibility is to express a conclusion on the interim financial statements in the half year report based on our
review. This report, including the conclusion, has been prepared for and only for the company for the purpose of
complying with the Transparency (Directive 2004/109/EC) Regulations 2007 and the Transparency Rules of the
Central Bank of Ireland and for no other purpose. We do not, in giving this conclusion, accept or assume
responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may
come save where expressly agreed by our prior consent in writing.

What a review of interim financial statements involves

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410,
‘Review of Interim Financial Information Performed by the Independent Auditor of the Entity’ issued by the Auditing
Practices Board for use in the United Kingdom and Ireland. A review of interim financial information consists of
making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and
other review procedures.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing
(Ireland) and, consequently, does not enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We have read the other information contained in the half year report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the interim financial statements.

30
PricewaterhouseCoopers
Chartered Accountants
26 February 2019
Dublin

Notes:
(a) The maintenance and integrity of the Green REIT plc website is the responsibility of the directors; the work
carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept
no responsibility for any changes that may have occurred to the financial statements since they were initially
presented on the website.
(b) Legislation in the Republic of Ireland governing the preparation and dissemination of financial statements may
differ from legislation in other jurisdictions.

31
Green REIT plc
Unaudited condensed consolidated statement of comprehensive income
For the six month period to 31 December 2018
31 December 2018 31 December 2017
Notes Underlying Capital and Total Underlying Capital and Total
pre-tax other pre-tax other
€’000 €’000 €’000 €’000 €’000 €’000
Gross rental and related income 5 40,869 - 40,869 38,811 - 38,811

Rental income 5 34,400 - 34,400 33,682 - 33,682

Property operating expenses 5 (1,554) - (1,554) (1,306) - (1,306)

Net rental and related income 5 32,846 - 32,846 32,376 - 32,376

Net movement on fair value of investment properties 6,9 - 25,358 25,358 - 31,288 31,288
Investment Manager base fee 18 (6,341) - (6,341) (5,800) - (5,800)
Administrative expenses (1,109) - (1,109) (1,129) - (1,129)

Operating profit 25,396 25,358 50,754 25,447 31,288 56,735

Finance expense 7 (3,698) (1,440) (5,138) (3,338) (352) (3,690)

Profit on ordinary activities before taxation 21,698 23,918 45,616 22,109 30,936 53,045
Taxation 8 - - - - - -

Profit for the year after taxation 21,698 23,918 45,616 22,109 30,936 53,045
Other comprehensive income - - - - - -
____________ ____________ ____________ ____________ ____________ ____________
Total comprehensive income for the period attributable
to the shareholders of the Company 21,698 23,918 45,616 22,109 30,936 53,045
________ _________ _________ ________ _________ _________
Basic earnings per share (cent) 14 3.1 3.4 6.5 3.2 4.5 7.7
Diluted earnings per share (cent) 14 3.1 3.4 6.5 3.2 4.5 7.7
_________ _________ _________ _________ _________ _________
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

32
Green REIT plc
Unaudited condensed consolidated statement of financial position
as at 31 December 2018
31 December 30 June
2018 2018
Assets Note €’000 €’000
Non-current assets
Investment properties 9 1,483,187 1,424,428
Financial assets 10 - 389
Trade and other receivables 11 27,970 32,062

Total non-current assets 1,511,157 1,456,879

Current assets
Trade and other receivables 11 8,709 4,541
Cash and cash equivalents 45,097 48,470

Total current assets 53,806 53,011

Total assets 1,564,963 1,509,890

Equity
Share capital 12 69,946 69,435
Share premium 663,022 655,760
Performance fee share reserve - 7,773
Retained earnings 545,516 518,647

Equity attributable to shareholders of the Company 1,278,484 1,251,615

Liabilities
Current liabilities
Amounts due to investment manager – base fee 3,200 3,115
Trade and other payables 16 16,088 24,745
Borrowings 17 - 70,534

Total current liabilities 19,288 98,394

Non-current liabilities
Borrowings 17 257,478 149,652
Financial liabilities 16 1,051 -
Trade and other payables 16 8,662 10,229

Total non-current liabilities 267,191 159,881

Total liabilities 286,479 258,275

Total equity and liabilities 1,564,963 1,509,890

Basic net asset value per share (cent) 15 182.8 180.3

Diluted net asset value per share (cent) 15 182.8 178.9

EPRA net asset value per share (cent) 15 182.9 178.9

The accompanying notes are an integral part of these unaudited condensed interim consolidated
financial statements.

33
Green REIT plc
Unaudited condensed consolidated statement of changes in equity
for the period ended 31 December 2018
Performance
Share Share fee share Retained
capital premium reserve earnings Total
€’000 €’000 €’000 €’000 €’000

At 1 July 2018 69,435 655,760 7,773 518,647 1,251,615

Total comprehensive income for the period
Profit for the financial period - - - 45,616 45,616
Transactions with owners, recognised directly in equity
Investment Manager – performance fee shares issued 511 7,262 (7,773) - -
Dividends paid - - - (18,747) (18,747)
At 31 December 2018 69,946 663,022 - 545,516 1,278,484

Performance
Share Share fee share Retained
capital Premium reserve earnings Total
€’000 €’000 €’000 €’000 €’000

At 1 July 2017 69,035 650,478 5,682 426,984 1,152,179

Total comprehensive income for the year
Profit for the financial period - - - 53,045 53,045
Transactions with owners, recognised directly in equity
Investment Manager – performance fee shares issued 400 5,282 (5,682) - -
Dividends paid - - - (34,517) (34,517)

At 31 December 2017 69,435 655,760 - 445,512 1,170,707

34
Green REIT plc
Unaudited condensed consolidated statement of cash flows
for the six month period to 31 December 2018
31 December 31 December
2018 2017
Note €’000 €’000
Cash flows from operating activities
Profit for the period 45,616 53,045
Adjustments for:
- Net movement on revaluation of investment
properties 6,9 (25,358) (31,288)
- Net movement on revaluation of financial
assets 6 1,440 352
- Finance expense 7 3,698 3,338

25,396 25,447
Changes in:
- Trade and other receivables 11 (281) (455)
- Current liabilities and base fee due 16 (8,572) (982)
- Lease incentives 11 205 (6,496)
- Long term other payables 16 (1,567) 2,286

Cash generated from operating activities 15,181 19,800

Interest paid (2,743) (2,842)

Cash inflow from operating activities 12,438 16,958

Cash flows from investing activities

Acquisition of investment properties 9 - (2,867)
Capital expenditure on properties 9 (33,581) (39,810)
Proceeds from sale of investment properties 9 - 9,145

Net cash used in investing activities (33,581) (33,532)

Cash flows from financing activities

Dividends paid (18,747) (34,517)
Drawdowns under revolving credit facility 127,969 42,728
Repayments under revolving credit facility (89,809) (1,400)
Costs associated with loan refinancing (1,643) -

Net cash inflow from financing activities 17,770 6,811

Net outflow in cash and cash equivalents (3,373) (9,763)

Cash and cash equivalents at beginning of period 48,470 48,797

Cash and cash equivalents at end of period 45,097 39,034

The accompanying notes are an integral part of these unaudited condensed interim consolidated
financial statements.

35
Green REIT plc
Notes

Notes to the condensed interim consolidated financial statements

1. Reporting entity

Green REIT plc (the ‘Company’) is a Company domiciled in Ireland. The address of the Company’s
registered office is 32 Molesworth Street, Dublin 2.

The Company’s Ordinary Shares were listed on the main markets for listed securities on the Irish
Stock Exchange and the London Stock Exchange on Thursday 18 July 2013.

These unaudited condensed interim consolidated financial statements as at and for the six months
ended 31 December 2018 comprise the Company and its subsidiaries (together referred to as the
‘Group’ and individually as ‘Group entities’).

2. Basis of preparation

The Group condensed interim consolidated financial statements, which should be read in
conjunction with the Annual Report for the year ended 30 June 2018, have been prepared in
accordance with the Transparency (Directive 2004/109/EC) Regulations 2007 and in accordance
with International Accounting Standard 34, Interim Financial Reporting (IAS 34) as adopted by the
European Union.

These results are unaudited but were reviewed by our auditors. The interim consolidated financial
statements herein do not constitute the statutory financial statements of Green REIT plc, which were
prepared as at and for the year ended 30 June 2018, were approved by the Board of Directors on 25
October 2018 and delivered to the Registrar of Companies. The report of the auditors on those
financial statements was unqualified. The next statutory financial statements will be prepared for
the year ending 30 June 2019.

The preparation of the condensed interim consolidated financial statements requires management to
make judgements, estimates and assumptions that affect the application of policies and reported
amounts of certain assets, liabilities, revenues and expenses together with disclosure of contingent
assets and liabilities. Estimates and underlying assumptions are reviewed on an ongoing basis.

The Directors have a reasonable expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future, a period of not less than twelve months from the
date of this report. For this reason, the Directors adopt the going concern basis of accounting in
preparing these condensed interim consolidated financial statements.

36
Green REIT plc
Notes (continued)

3. Significant accounting policies

The accounting policies, significant judgements, key assumptions and estimates applied by the
Group in these condensed interim consolidated financial statements are consistent with those
applied in the 2018 Annual Report with the exception of the new standards effective for the first
time in this financial period which are discussed below.

There are a number of new standards, amendments to standards and interpretations which are not
yet effective for the period, and have not been applied in preparing these condensed interim
consolidated financial statements. We are currently assessing the full impact of these amendments
on the Group.

Impacts of standards effective from 1 July 2018

IFRS 9 – Financial Instruments

IFRS 9 replaces the provisions of IAS39 that relate to the recognition, classification and
measurement of financial assets and financial liabilities, derecognition of financial instruments,
impairment of financial assets and hedge accounting.

The Group adopted IFRS 9 from 1 July 2018. The comparative figures have not been restated, which
is in line with the transitional provisions. The impact of adopting the new standard is not material to
the Group’s consolidated financial statements and there was no adjustment to retained earnings on
application at 1 July 2018.

IFRS 9 eliminates the previous IAS 39 categories for financial assets of held-to-maturity, loans and
receivables and available-for-sale. Under IFRS 9, on initial recognition, a financial asset is classified
as measured at amortised cost or fair value through other comprehensive income (FVOCI), or fair
value through profit or loss (FVPL). On 1 July 2018 the Group assessed which business models
apply to the financial assets held by the Group and has classified its financial instruments as follows:

Original Classification New Carrying

Classification amount 1
July 2018
€’000
Trade and other receivables Loans and receivables Amortised Cost 36,603
Cash and cash equivalents Loans and receivables Amortised Cost 48,470
Interest rate swaps FVPL FVPL 389

Both trade and other receivables and cash and cash equivalents were classified as loans and
receivables under IAS 39 and both are now classified at amortised cost as the Group’s business
model is to hold the financial asset to collect contractual cash flows and the contractual terms of the
financial asset give rise to cash flows that are solely payments of principal and interest (SPPI) on
the principal amount outstanding

Trade receivables are also subject to the new expected credit loss model in IFRS 9. The Group has
applied the simplified approach to measuring expected credit losses which uses a lifetime expected
loss allowance for trade receivables.

37
Green REIT plc
Notes (continued)

3. Significant accounting policies (continued)

IFRS 15 – Revenue from Contracts with Customers

The Group adopted IFRS 15 Revenue from Contracts with Customers’ and the related ‘Clarifications
to IFRS 15 Revenue from Contracts with Customers’ (hereinafter referred to as ‘IFRS 15’) which
replaced IAS 18 ‘Revenue’, IAS 11 ‘Construction Contracts’, and several revenue-related
interpretations from 1 July 2018. This results in some change to the accounting policies listed below.
This standard applied to the accounting for service charge income but excluded rent receivable, the
Group’s primary income source, which is still within the scope of IAS 17. The adoption of the
standard did not have a material impact on the condensed consolidated interim financial information
included in this report.

Service charge income and expenditure are recorded as income over the period in which the services
are rendered. Revenue is recognised over time because the tenants benefit from the services as soon
as they are rendered by the Group. The actual service provided during each reporting period is
determined using cost incurred as the input method.

Impact of standards in issue but not yet effective.

The Group has considered the impact of the new standard IFRS16 and interpretations on its financial
reporting and currently intends to apply the new requirements from 1 July 2019. The principal
impact will be on the additional disclosure required by IFRS16. As stated in the standard, IFRS 16
substantially carries forward the lessor accounting requirements in IAS 17, and accordingly the
Group does not expect any material measurement change from the new standard.

The other new standards which have been issued and are not yet effective are not expected to have
a material impact on the Group.

4. Operating segments

The Group is organised into four business segments, against which the Group reports its segmental
information, being Office Assets, Logistics Assets, Mixed Use Assets and Retail Assets. All of the
Group’s operations are in the Republic of Ireland. Operating segments are reported in a manner
consistent with the internal reporting provided to the chief operating decision maker, who has been
identified as the Board of Directors of the Company.

Unallocated income and expenses are items incurred centrally which are neither directly attributable
nor reasonably allocable to individual segments. Unallocated assets are certain cash and cash
equivalents, and certain other assets.

The Group’s key measures of performance of a segment are net rental income and the movement in
fair value of properties, as these measures illustrate and emphasise that segment’s contribution to
the reported profits of the Group and the input of that segment to earnings per share. By focusing on
these prime performance measures, other key statistical data such as capital expenditure and once
off exceptional items are separately highlighted for analysis and attention.

Information related to each reportable segment is set out on the following pages:

38
Green REIT plc
Notes (continued)

4 Operating segments (continued)

Unallocated Group
Office Logistics Mixed Use Retail Expenses Consolidated
Assets Assets Assets Assets Total and Assets Position
2018 2018 2018 2018 2018 2018 2018
€’000 €’000 €’000 €’000 €’000 €’000 €’000
Six months to 31 December 2018
Gross rental and related income (1) 36,383 1,993 2,338 155 40,869 - 40,869
Rental income 30,374 1,796 2,075 155 34,400 - 34,400
Property outgoings (1,458) (39) (53) (4) (1,554) - (1,554)
Net rental and related income 28,916 1,757 2,022 151 32,846 - 32,846
Net movement on fair value of investment properties 22,615 2,994 (184) (67) 25,358 - 25,358
Investment Manager - base fee (5,903) (481) (313) (31) (6,728) 387 (6,341)
Investment Manager - performance fee - - - - - - -
Administration expenses - - - - - (1,109) (1,109)
Segment profit before tax 45,628 4,270 1,525 53 51,476 (722) 50,754
Finance costs (2,655) - - - (2,655) (2,483) (5,138)

Profit before tax 42,973 4,270 1,525 53 48,821 (3,205) 45,616

As at 31 December 2018
Total segment assets (2) 1,382,043 106,682 61,205 6,286 1,556,216 7,696 1,563,912
Investment properties and development property 1,315,831 103,631 57,780 5,945 1,483,187 - 1,483,187

(1) Including service charge income

(2) Total cash and cash equivalents and short-term deposits at 31 December 2018 were €45.1 million (30 June 2018 €48.5 million) of which €6.6 million (30 June 2018:
€11.1 million) is unallocated to operating segments in the table above.

39
Green REIT plc
Notes (continued)

4 Operating segments (continued)

Unallocated Group
Office Logistics Mixed Use Retail Expenses Consolidated
Assets Assets Assets Assets Total and Assets Position
2017 2017 2017 2017 2017 2017 2017
€’000 €’000 €’000 €’000 €’000 €’000 €’000
Six Months to 31 December 2017
Gross rental and related income (1) 30,519 971 2,715 4,606 38,811 - 38,811
Rental income 26,778 747 2,286 3,871 33,682 - 33,682
Property outgoings (942) (21) (182) (161) (1,306) - (1,306)
Net rental and related income 25,836 726 2,104 3,710 32,376 - 32,376
Net movement on fair value of investment properties 42,654 (6,918) (2,789) (1,659) 31,288 - 31,288
Investment Manager - base fee (5,444) (281) (332) (352) (6,409) 609 (5,800)
Investment Manager - performance fee - - - - - - -
Administration expenses - - - - - (1,129) (1,129)
Segment profit before tax 63,046 (6,473) (1,017) 1,699 57,255 (520) 56,735
Finance costs (2,022) - - - (2,002) (1,668) (3,690)

Profit before tax 61,024 (6,473) (1,017) 1,699 55,233 (2,188) 53,045

As at 31 December 2017
Total segment assets (2) 1,239,857 62,502 61,084 142,884 1,506,327 13,446 1,519,773
Investment properties and development property 1,189,494 61,422 57,390 137,935 1,446,241 - 1,446,241

(1) Including service charge income

(2) Total cash and cash equivalents and short-term deposits at 31 December 2017 were €39.0 million (30 June 2017 €48.8 million) of which €11.6 million (30 June
2017: €10.2 million) is unallocated to operating segments in the table above.

40
Green REIT plc
Notes (continued)

5 Gross and net rental and related income 31 December 31 December

2018 2017
€’000 €’000

Gross rental and related income

Gross rental income 32,863 27,186
Spreading of tenant lease incentives/rent-free periods 1,537 6,496

Rental income 34,400 33,682

Service charge income 6,469 5,129

Gross rental and related income 40,869 38,811

Service charge expenses (6,469) (5,129)

Property operating expenses (1,554) (1,306)

Net rental and related income 32,846 32,376

6 Net movement on fair value of investments 2018 2017

€’000 €’000

Fair value gain on investment and development properties 25,358 31,288

(note 9)
Fair value loss on financial assets (note 10 and 16) (1,440) (352)

Net movement on fair value 23,918 30,936

7 Finance expense 2018 2017

€’000 €’000

Loan interest (2,266) (2,567)

Swap interest (178) -
Commitment fees (504) (272)
Loan cost amortisation (747) (496)
Bank fees and other costs (3) (3)

(3,698) (3,338)
Fair value movement of interest rate swaps (1,440) (352)

Net finance expense (5,138) (3,690)

41
Green REIT plc
Notes (continued)

8 Taxation

As disclosed in the 2018 Annual Report, Green REIT plc elected for group REIT status with effect
from July 2013. As a result, the Group does not pay Irish corporation tax on the profits and gains
from qualifying rental business in Ireland provided it meets certain conditions.

The Directors confirm that the Group has remained in compliance with the Irish REIT rules and
regulations up to and including the date of this report.

9 Investment properties
Investment Development Total
Property Property
€’000 €’000 €’000

At 1 July 2018 1,409,448 14,980 1,424,428

Additions:
- Capital additions 3,096 29,884 32,980
- Land 421 - 421
Reclassification to development (294) 294 -
Reclassification to investment 49,373 (49,373) -
Change in fair value 17,713 7,645 25,358

Balance at 31 December 2018 1,479,757 3,430 1,483,187

Reclassification of properties
During the six months ended 31 December 2018, the Group reclassified certain lands at Horizon
Logistics Park from Investment Property to Development Property. This was done to reflect the
planning permission that had been obtained for buildings on these sites and the Group’s intention
to develop them.

During the period the Group also reclassified Block I in Central Park, Dublin 18, from
Development Properties to Investment Properties in line with the valuation methodology applied
at 31 December 2018. The reclassification to investment also includes capital expenditure on
development projects that were previously reclassified to Investment Property, such as Block H in
Central Park, One Molesworth Street, 5 Harcourt Road and a number of units at Horizon Logistics
Park.
Fair Value of Properties
The fair value of the Group’s investment property at 31 December 2018 has been arrived at on the
basis of valuations carried out at that date by external valuers appointed by the Group, namely
CBRE Ireland (CBRE), Savills Ireland (Savills) and Jones Lang LaSalle Ireland (JLL).
JLL performed valuations on 47.0% of the investment property portfolio (by value), CBRE
performed valuations on 47.8% of the portfolio and Savills performed valuations on the remaining
5.2%. The fees earned by JLL, CBRE and Savills from the Group are less than 5% of their total
Irish revenues.
The information provided to the valuers, and the assumptions and valuation methodologies and
models used by the valuers, are reviewed by senior members of the Investment Manager.

42
 Green REIT plc
Notes (continued)
9 Investment properties (continued)

The valuations performed by CBRE, Savills and JLL, which conform to the Valuation Standards
of the RICS and with IVA 1 of the International Valuations Standards, were arrived at by reference
to market evidence of transaction prices for similar properties. Quantitative information about fair
value measurements using unobservable inputs (Level 3) at 31 December 2018, per property class,
is set out below. For further analysis on value by sector, rental income and ERV by sector and
vacancy by sector, please refer to Portfolio Analysis in Appendix 1.

Asset class Input Range

Low Median High
Annual rent per sq ft - € 23.171 50.20 64.01
Office Assets –
ERV per sq ft - € 40.03 53.37 59.70
Dublin CBD (13
buildings) Equivalent yield % 4.00% 4.65% 5.68%
Vacancy rate 0.00% 0.00% 17.72%

Annual rent per sq ft - € 22.81 24.75 27.00

Office Assets –
ERV per sq ft - € 26.00 26.00 27.13
South Dublin (Six
Equivalent yield % 4.80% 5.39% 5.52%
buildings)
Vacancy rate 0.00% 0.00% 0.00%

Office Asset – One Annual rent per sq ft - € 22.00 25.00 27.50

Albert Quay, Cork ERV per sq ft - € 25.00 30.00 31.00
City2 (One Equivalent yield % 5.50% 5.50% 5.50%
building) Vacancy rate 0.00% 0.00% 0.00%

Annual rent per sq ft - € 42.81 64.66 81.14

Retail Assets ERV per sq ft - € 56.74 60.00 80.00
(Three buildings) Equivalent yield % 4.00% 4.46% 4.46%
Vacancy rate 0.00% 0.00% 41.71%

Logistics Asset – Annual rent per sq ft - € 7.81 8.98 9.82

Horizon Logistics ERV per sq ft - € 9.00 9.50 9.95
Park (Eight Equivalent yield % 5.10% 5.50% 6.05%
buildings)3 Vacancy rate 0% 0% 100%

Mixed Use Assets4 Equivalent yield % 5.66% - 6.56%

(Two buildings) Vacancy rate 0.00% - 9.86%

Development Net initial yield % 5.50% - 5.50%

Assets - Industrial5 Build costs psf €52.00 - €56.50
(Two buildings) Rental value psf €9.50 - €9.50

1
Low range on rent in Dublin CBD relates to an older building that has had little capital investment in the last 15 years.
2
ERV and Rent per square foot are calculated on a lease-by-lease basis as there is only one building in this category.
3
Unit D3 is excluded, as it is a specialised unit built to order, with a high office component. Its annual rent per sq ft is
€30.40, it is fully occupied and its equivalent yield is 4.75%. Also, the 100% vacancy in the High range here relates to unit
D4, the only vacant unit in the logistics park.
4
Comprises Arena Centre in Tallaght, Dublin 24 and INM Building in Citywest, Dublin 24. Annual rent psf and ERV psf are
not included as the units are not comparable.
5
Rental value on development assets is the external valuers’ view of expected rental value that will be achieved upon
completion of the development.

43
Green REIT plc
Notes (continued)
9 Investment properties (continued)

Sensitivity of measurement to variance of significant unobservable inputs

A decrease in the estimated rental value will decrease the fair value. Similarly, an increase in
equivalent yield will decrease the fair value. There are interrelationships between these rates as
they are partially determined by market rate conditions.

Across the entire portfolio of investment and development properties, a 0.25% increase in
equivalent yield would have the impact of a €74.7 million reduction in fair value whilst a 0.25%
decrease in yield would result in a fair value increase of €82.0 million. On a similar basis, a 1.0%
increase in the equivalent yield would have a €259.1 million reduction in fair value whilst a 1.0%
decrease in yield would result in a fair value increase of €394.9 million. This is further analysed
by property class, as follows:

Value +0.25% Value -0.25%

Property Class Equivalent Yield Equivalent Yield
€’000 €’000
Office – Dublin CBD (43,221) 47,851
Office – South Dublin (21,990) 23,865
Office – Cork (3,690) 3,980
Retail (305) 337
Logistics (3,220) 3,440
Mixed Use (1,959) 2,238
Investment Properties (74,385) 81,711
Development Properties (297) 327
Total (74,682) 82,038

Value +1% Value -1%

Property Class Equivalent Yield Equivalent Yield
€’000 €’000
Office – Dublin CBD (148,436) 234,183
Office – South Dublin (77,062) 112,750
Office – Cork (12,950) 18,710
Retail (1,043) 1,674
Logistics (11,300) 16,190
Mixed Use (7,238) 9,905
Investment Properties (258,029) 393,412
Development Properties (1,055) 1,525
Total (259,084) 394,937

44
 Green REIT plc
Notes (continued)

10 Non-current financial asset

31 December 30 June
2018 2018
€’000 €’000

Total non-current financial assets - 389

The non-current financial asset represents interest rate hedges entered into in respect of the Group’s
borrowings.

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and
are subsequently remeasured to their fair value at the end of each reporting period. This does not
qualify for hedge accounting and changes in the fair value of the derivative instrument are recognised
immediately in profit or loss and are included in finance costs. Please see Note 16 for details of the
position at 31 December 2018.

11 Trade and other receivables

31 December 30 June
2018 2018
€’000 €’000
Current
Tenant lease incentives 3,949 225
Trade receivables 1,621 747
Other receivables 3,139 3,569

8,709 4,541
Non-Current
Tenant lease incentives 26,082 30,011
Other receivables 1,888 2,051

27,970 32,062
_________ _________
Total trade and other receivables 36,679 36,603

Tenant lease incentives

Where a rent-free period is included as an incentive in a lease, the rental income foregone is
allocated evenly over the period from the date of the lease to the earliest termination date of the
lease. Where a lease incentive takes the form of an incentive payment to a tenant the resultant cost
is amortised evenly over the remaining life of the lease to its earliest termination date. The balance
included in trade and other receivables is the sum of these unamortised incentives which will be
released over the term of the relevant leases to their earliest termination date.

The carrying value of all trade and other receivables approximates to their fair value.

Other receivables
Other receivables represent amounts due from property management companies for pre-funding
of capital works and other service charge related items.

45
Green REIT plc
Notes (continued)

12 Share capital

The Company has one class of shares referred to as ordinary shares. All shares rank equally. The
holders of ordinary shares are entitled to receive dividends as declared from time to time and are
entitled to one vote per share at meetings of the Company. Other than the issue of 5,114,736
performance shares on 5 October 2018 to the Investment Manager, there were no changes to the
share capital in the period. These shares were issued to meet the Company’s obligation with respect
to the performance fee of €7.8 million earned for the year to 30 June 2018.

13 Dividends

In accordance with the Irish REIT regime, the Group is required, subject to having sufficient
distributable reserves, to distribute to its shareholders (by way of dividend), at least 85% of the
Property Income of the Property Rental Business arising in each Accounting Period.

On 19 October 2018 a dividend of €18.8 million was paid in respect of the financial year ended 30
June 2018. This was the second interim dividend for that financial year.

The Directors intend to declare an interim dividend of 2.8 cent per share for the six months to 31
December 2018, to be paid in March 2019.

46
Green REIT plc
Notes (continued)

14 Earnings per share

Basic and diluted earnings per share

Profit attributable to ordinary shareholders

31 December 31 December
2018 2017
€’000 €’000

Profit for the period, attributable to the owners of the Company 45,616 53,045
EPRA adjustment:
– Deduction of fair value movement on investment properties (25,358) (31,288)
– Addition of fair value movement on financial assets 1,440 352
___________ ___________
EPRA Earnings 21,698 22,109

Weighted average number of ordinary shares

2018 2017
Number Number

Effect of shares in issue on 1 July 694,354,902 690,347,705

Effect of performance fee shares issued 2,918,735 2,352,050

Weighted average number of ordinary shares – basic and 697,273,637 692,699,755

diluted

Basic earnings per share (cent) 6.5 7.7

Diluted earnings per share (cent) 6.5 7.7
EPRA Earnings per share (cent) 3.1 3.2
Diluted EPRA Earnings per Share (cent) 3.1 3.2

47
Green REIT plc
Notes (continued)

15 Net asset value per share

31 December 30 June
2018 2018

Net assets as at period end (‘000) €1,278,484 €1,251,615

EPRA adjustment – Add/(Deduct) fair value of financial €1,051 (€389)
derivatives (‘000)
___________ ___________
EPRA net assets as at 30 June (‘000) €1,279,535 €1,251,226

Ordinary shares in issue 699,469,638 694,354,902

Performance fee shares issuable - 5,114,736
___________ ___________
Ordinary shares including performance fee shares issuable 699,469,638 699,469,638

Basic NAV per share (cent) 182.8 180.3

Diluted NAV per share (cent) 182.8 178.9
EPRA NAV per share (cent) 182.9 178.9

The European Public Real Estate Association (“EPRA”) issued Best Practices Recommendations
most recently in November 2016, which gives guidelines for performance measures. Please see
Appendix 2 for further details of these and other Alternative Performance Measures used.

16 Trade and other payables 31 December 30 June

2018 2018
€’000 €’000

Accrued expenditure 3,004 8,438

Deferred income and income received in advance 7,621 8,224
Trade creditors 219 1,006
Provision for service charge 950 1,188
VAT 826 461
Other creditors 3,468 5,428
______ ______
Total trade and other payables - current 16,088 24,745

Long term VAT creditors 8,662 10,229

Financial liability (see Note 10) 1,051 -
______ ______
25,801 34,974

The carrying value of all trade and other payables is approximate to their fair value.

48
Green REIT plc
Notes (continued)

17 Borrowings
31 December 30 June
2018 2018
€’000 €’000

Current
Revolving credit facility - 70,534

Non-current
Bank of Ireland Central Park facility 149,843 149,652
Revolving credit facility 107,635 -
________ ________
Total borrowings 257,478 220,186
________

As at 31 December 2018 the Company had a revolving credit facility with €109.2 million drawn
against a limit of €210 million, at an interest rate of Euribor plus 1.8%. The amount presented in
the financial statements is net of unamortised initial arrangement fees and associated costs of €1.6
million. The repayment date for this facility is September 2022, with the benefit of an option to
extend the repayment date to September 2023. The facility is secured by way of a floating charge
over the assets of the Company and its subsidiaries, excluding those assets secured to Bank of
Ireland under the Central Park financing.

The Group has a second loan facility in place for €150 million with Bank of Ireland. The amount
presented in the financial statements is net of unamortised initial arrangement fees and associated
costs of €0.2 million. The facility has an interest rate of Euribor + 2.0% and the loan is repayable
in June 2021, unless the extension option is exercised by the Company, in which case it will be
repayable in June 2023. The loan is secured on the assets owned by the Group at Central Park,
Dublin 18, along with the relevant rents from those properties.

49
Green REIT plc
Notes (continued)

18 Related parties

(a) Subsidiaries

The Company’s subsidiaries are detailed in the 2018 Annual Report.

The Company transacts with its 100% owned and controlled subsidiaries and has provided them
with the necessary funding to facilitate the acquisition of the assets that now form part of the
Group’s overall assets.

(b) Investment Manager - Green Property REIT Ventures DAC

Green Property REIT Ventures DAC is a related party by virtue of providing key management
services to the Company. These services are set out in the IMA entered into on 12 July 2013.

Investment Manager role and responsibilities

The Investment Manager identifies possible property acquisitions for, and opportunities with a
view to investment by, the Company by reference to the Company’s investment policy and strategy
and will be entitled to consult with professional advisers to assist it. Further information is included
in our annual report.

Base fee
The base fee is paid to the Investment Manager in cash quarterly in arrears. The base fee in respect
of each quarter is calculated by reference to 1% per annum of EPRA NAV for that quarter. The
total base fee earned by the Investment Manager in the period amounted to €6.3 million (2017:
€5.8 million).

Performance fee
The performance fee is designed to incentivise and reward the Investment Manager for generating
returns to shareholders. Further information is included in the annual report.
The condensed interim consolidated financial statements do not include a performance fee as the
Board estimate that no performance fee will be payable in this financial year. The Board will
determine any actual performance fee due for the year to 30 June 2019 in accordance with the
provisions of the IMA, on the basis of the audited year end EPRA NAV.

Shareholding
At 31 December 2018, Green Property REIT Ventures held 32,499,942 ordinary shares in the
Company. These shares were issued in full settlement of the performance fees for the years to 30
June 2015, 2016, 2017 and 2018.

(c) Directors and key management personnel

The key management personnel of the Company are its Directors. During the six months
to 31 December 2018, the Company incurred Directors’ fees, including taxes and expenses of
€0.14 million. There is no other Director or key management compensation paid by the Company.

50
Green REIT plc
Notes (continued)

19 Subsequent events

There were no events subsequent to the reporting date that require adjustment to or disclosure in
the condensed interim consolidated financial statements.

20 Capital commitments

The Group has entered into a number of development contracts to develop buildings at various
locations. The total capital commitment for contracts entered into at the 31 December 2018 over
the next 12-24 months is €21.9 million.

21 Contingent liabilities

No contingent liabilities have been identified by the Group that should be disclosed in these
financial statements.

22 Board Approval

These unaudited condensed consolidated financial statements were approved by the board on 26
February 2019.

51
APPENDIX 1 - PORTFOLIO ANALYSIS AT 31 DECEMBER 2018
RENTAL INCOME
Passing Contracted ERV (2) Variance Vacant
rent rent €m pa v Dec-18 ERV (2)
€m pa €m pa ERV €m pa
Dublin CBD
Office (1) 30.0 36.2 38.9 -7% 2.3
(2/4)
South Dublin 24.5 25.1 25.6 -2% -

Cork 3.8 4.1 5.1 -20% -

Office Total 58.3 65.4 69.6 -6% 2.3

Logistics 3.9 4.3 3.4 +26% 0.4

Mixed use 4.5 4.4 3.6 +22% 0.1

Retail 0.3 0.3 0.2 +50% -

Total (Let properties only) 67.0 74.4 76.83 -3% 2.8

(1)
Breakdown on property by property basis, certain office schemes contain small element of retail
(2)
Excludes ERV of development assets under construction at 31 December 2018
(3)
Excludes vacant ERV of €2.8m. Total ERV €79.6m at 31 December 2018

LEASE LENGTHS & VACANCY

WAULT Vacancy Vacancy
(years) (2) (by floor area) (by ERV) (3)
Dublin CBD
Office (1) 9.7 5.6% 5.5%
(2/4)
South Dublin 7.2 - -

Cork 8.2 - -

Office total 8.6 2.4% 3.2%

Logistics 11.2 11.2% 11.2%

Mixed use 7.6 3.3% 2.7%

Retail 11.0 - -

Total portfolio 8.7 3.9% 3.5%

(1)
Breakdown on property by property basis, certain office schemes contain small element of retail
(2)
Unexpired Term/ WAULT is the rent-weighted average remaining term on leases to lease expiry/ break date (whichever
comes first). Excludes short-term licences.
(3)
Excludes ERV of development assets under construction at 31 December 2018

52
CONTRACTED RENTS VERSUS ESTIMATED MARKET RENTS (ERVs) (2)
Average Average Variance
contracted rent ERV (v ERV)
(€psf) (€psf)
Dublin CBD
Office (1) 49.80 53.40 -7%
(2/4)
South Dublin 25.30 26.50 -4%

Cork 23.70 28.50 -17%

Office total 35.10 37.60 -7%

Logistics 12.00 9.50 +26%

Mixed use 14.60 11.30 +29%

Retail 59.60 44.70 +33%

Total (Let properties only) 29.30 30.30 -3%

(1)
Breakdown on property by property basis, certain office schemes contain small element of retail
(2)
Let properties only. Excludes residential, hotel and car space rent (where applicable)

SECTORS BY VALUE
Net value % of
€m Group total
Dublin CBD
Office (1) 774.5 52%
(2/4)
South Dublin 460.1 31%

Cork 81.3 5%

Office total 1,315.9 88%

Logistics 103.6 7%

Mixed use 57.8 4%

Retail 5.9 <1%

Total portfolio 1,483.2 100%

(1)
Breakdown on property by property basis, certain office schemes contain small element of retail

53
LOCATIONS BY VALUE
Net value % of Group
€m total
Dublin CBD (2/4) 780.4 53%

South Dublin 517.9 35%

Dublin Airport 103.6 7%

Dublin Total 1,401.9 95%

Cork 81.3 5%

Total Portfolio 1,483.2 100%

CONTRACTED RENT BREAKDOWN BY TENANT BUSINESS SECTORS

Contracted rent % of
€m pa Group rent
Banking 18.8 25%

Finance/ Financial Services 17.0 23%

Technology, Media and
15.1 20%
Telecommunications (‘TMT’)
Flexible Office 4.7 6%

Logistics 4.2 6%

Retail Trade 4.0 5%

Public Administration
3.5 5%
(Irish Government)
Professional Services 3.0 4%

Other 4.1 6%

Total portfolio 74.4 100%

54
TOP 10 OCCUPIERS BY CONTRACTED RENT
Business Contracted Unexpired
% of
Tenant sector rent term
Group rent
€m pa (years) (1)

Allied Irish Bank Banking 9.3 12.5% 9.4

Vodafone TMT 7.3 9.8% 7.8

Fidelity International Financial Services 3.7 5.0% 9.1

Amundi (Pioneer
Financial Services 3.5 4.7% 8.3
Investment)
WeWork Flexible Office 3.1 4.2% 19.7

Ulster Bank Banking 3.0 4.0% 7.6

Bank of America Merrill
Banking 2.8 3.8% 5.2
Lynch
The Commissioners of
Public Administration 2.8 3.8% 4.3
Public Works Ireland
Barclays Banking 2.4 3.2% 11.1

Northern Trust Financial Services 2.3 3.0% 8.7

Top 10 tenants 40.2 54.0% 9.1

Remaining tenants 34.2 46.0% 8.4

Total portfolio 74.4 100% 8.7

(1)
Unexpired Term/ WAULT is the rent-weighted average remaining term on leases to lease expiry/ break date (whichever
comes first). Excludes short-term licences

55
Appendix 2 – Alternative Performance Measures (‘APMs’)
EPRA Performance Measures
Consistent with other public real estate companies we include recommended best practice performance measures as defined by the European Public Real
Estate Association (‘EPRA’). Definitions of these measures and their calculations are set out below, along with their relevance.
EPRA Performance Measure Unit Definition of Measure Note Dec-18 Dec-17
EPRA Earnings €'000 Recurring earnings from core operational activities (i) 21,698 22,109
EPRA Earnings per share ('EPRA EPS') Cent EPRA earnings divided by the weighted average basic number of shares (i) 3.1 3.2
Diluted EPRA EPS Cent EPRA earnings divided by the diluted weighted average number of (i) 3.1 3.2
shares
EPRA cost ratio including vacancy costs % Administrative and operating costs, including direct vacancy costs, (ii) 26.2% 24.4%
divided by gross rental income. Costs include Investment Manager base
and performance fees (if applicable).
EPRA cost ratio excluding vacancy costs % Administrative and operating costs, excluding direct vacancy costs, (ii) 24.9% 23.8%
divided by gross rental income. Costs include Investment Manager base
and performance fees (if applicable).
Dec-18 Jun-18
EPRA Net Asset Value ('EPRA NAV') €'000 Net assets adjusted to exclude the fair value of financial instruments (iii) 1,279,535 1,251,226
EPRA NAV per share Cent EPRA net assets divided by the number of shares at the balance sheet (iii) 182.9 178.9
date on a diluted basis
EPRA triple net assets ('EPRA NNNAV') €'000 EPRA net assets amended to include the fair value of financial (iii) 1,278,484 1,251,615
instruments and debt
EPRA NNNAV per share Cent EPRA triple net assets divided by the number of shares at the balance (iii) 182.8 178.9
sheet date on a diluted basis
EPRA vacancy rate % ERV of non-development vacant space as a percentage of ERV of the (iv) 3.5% 4.4%
whole portfolio of non-development space
EPRA Net Initial Yield (NIY) % Annual passing rents at the balance sheet date, less non-recoverable (v) 4.2% 3.9%
property operating expenses, divided by the market value of income
producing property, increased by estimated purchasers' costs.
EPRA 'topped-up' NIY % EPRA NIY adjusted for the expiration of rent free periods (or other (v) 4.7% 4.7%
unexpired lease incentives such as discounted rent periods and step
rents.)

56
EPRA Performance Measure
EPRA Earnings
EPRA NAV and EPRA NNNAV
EPRA cost ratios
EPRA vacancy rate
EPRA NIY and ‘topped-up’ NIY
Relevance of Measure
A key measure of the Company’s underlying operating results and
an indication of the extent to which current dividend payments are
supported by earnings.
Provides shareholders with relevant information on the fair value
of the Company’s assets and liabilities as a real estate company
with a long-term investment strategy, adjusting IFRS NAV for
assets and liabilities not expected to crystalise, which in our case
are the Company’s hedging instruments which are intended to be
held to maturity. EPRA NNNAV on the other hand reflects the fair
value of all assets and liabilities regardless of whether they are
expected to crystalise or not.
Enables meaningful measurement of the changes in the
Company’s operating costs from period to period. As the inputs to
the measure are clearly defined by EPRA it also enables
shareholders to compare the operating costs of the Company to
those of other listed real estate companies.
Enables shareholders to measure the extent to which the
Company’s income producing property is vacant, based on the
external valuers’ estimates of ERV, which can be tracked between
periods and compared to the vacancy rates of other real estate
companies.
Enables shareholders to analyse the Company’s portfolio
valuations between periods and to compare them to the valuations
of other property portfolios.
57
i. EPRA Earnings Dec-18 Dec-17
€'000 €'000
Earnings per IFRS statement of comprehensive income: 45,616 53,045
Adjustments to calculate EPRA Earnings:
Changes in fair value of investment properties (25,358) (31,288)
Change in fair value of financial instruments 1,440 352
EPRA Earnings 21,698 22,109

EPS - Number of Shares: '000 '000

Shares in issue at opening 694,355 690,348
Effect of shares issued during the period 2,919 2,352
Weighted average basic number of shares 697,274 692,700
Dilutive effect of shares issuable at 31 December - -
Diluted number of shares 697,274 692,700

EPRA Earnings per share (cent) 3.1 3.2

Diluted EPRA Earnings per share (cent) 3.1 3.2

ii. EPRA Cost Ratios Dec-18 Dec-17

€000 €000
Property operating expenses per IFRS income statement 1,554 1,306
Administrative expenses per IFRS income statement 1,109 1,129
Management fees per IFRS income statement 6,341 5,800
EPRA Costs (Including direct vacancy costs) 9,004 8,235
Direct vacancy costs (425) (220)
EPRA costs excluding vacancy costs 8,579 8,015
Rental Income per IFRS income statement 34,400 33,682
EPRA cost ratio including vacancy costs 26.2% 24.4%
EPRA cost ratio excluding vacancy costs 24.9% 23.8%
Notes:
Rental Income above excludes service charge income.
No overheads or operating expenses are capitalised.
The Company had no JV interests in either financial period.

58
iii. EPRA NAV and EPRA NNNAV Dec-18 Jun-18
€000 €000
NAV per the financial statements 1,278,484 1,251,615
Fair Value of Financial Instruments 1,051 (389)
EPRA NAV 1,279,535 1,251,226
Fair Value of Financial Instruments (1,051) 389
EPRA NNNAV 1,278,484 1,251,615

NAV - Number of Shares: '000 '000

Shares in Issue at Balance Sheet Date 699,470 694,355
Dilutive effect of shares issuable at balance sheet date - 5,115
Diluted number of shares 699,470 699,470

EPRA NAV per share (cent) 182.9 178.9

EPRA NNNAV per share (cent) 182.8 178.9

iv. EPRA vacancy rate Dec-18 Jun-18

€000 €000
Annualised ERV of vacant space (income producing only) 2,800 3,500
Annualised ERV of portfolio (income producing only) 79,600 78,800
EPRA vacancy rate 3.5% 4.4%

59
v. EPRA Yields

At 31 December 2018 Office Logistics Mixed Retail Total

Use
€000 €000 €000 €000 €000
Investment property at fair value 1,315,831 103,631 57,780 5,945 1,483,187
Less: Development and Land (12,455) (33,401) - - (45,856)
Completed property portfolio 1,303,376 70,230 57,780 5,945 1,437,331
Purchasers' Costs at 8.46% 110,266 5,941 4,888 503 121,598
Gross up completed property portfolio valuation 1,413,642 76,171 62,668 6,448 1,558,929

Annualised cash passing rental income 58,300 3,900 4,500 300 67,000
Property outgoings (1,458) (39) (53) (4) (1,554)
Annual net passing rent 56,842 3,861 4,447 296 65,446
Annual cash rent on expiry of lease incentives 7,100 400 (100) - 7,400
Topped-up annual net passing rent 63,942 4,261 4,347 296 72,846

EPRA NIY 4.0% 5.1% 7.1% 4.6% 4.2%

EPRA 'topped-up' NIY 4.5% 5.6% 6.9% 4.6% 4.7%

60
v. EPRA Yields (continued)
At 30 June 2018 Office Logistics Mixed Retail Total
Use
€000 €000 €000 €000 €000
Investment property at fair value 1,270,673 89,970 57,830 5,955 1,424,428
Less: Development and Land (27,435) (34,279) - - (61,714)
Completed property portfolio 1,243,238 55,691 57,830 5,955 1,362,714
Purchasers' Costs at 8.46% 105,178 4,711 4,892 504 115,286
Gross up completed property portfolio valuation 1,348,416 60,402 62,722 6,459 1,478,000

Annualised cash passing rental income 52,300 1,600 4,400 300 58,600
Property outgoings (1,378) (60) (195) (31) (1,664)
Annual net passing rent 50,922 1,540 4,205 269 56,936
Annual cash rent on expiry of lease incentives 10,600 2,500 - 10 13,110
Topped-up annual net passing rent 61,522 4,040 4,205 279 70,046

EPRA NIY 3.8% 2.5% 6.7% 4.2% 3.9%

EPRA 'topped-up' NIY 4.6% 6.7% 6.7% 4.3% 4.7%

61
OTHER PERFORMANCE MEASURES
Gearing/Property LTV
As at 31-Dec-18 30-Jun-18
€m €m
Total Debt 259.2 220.9
Property Portfolio Value 1,483.2 1,424.4
Gearing/Property LTV 17.5% 15.5%

The use of debt to increase the potential returns to shareholders is common in

real estate companies. The disclosure of the gearing level assists an assessment
by shareholders of the financial position of the company, in that it shows the
extent to which debt is being used to enhance returns. It also assists
shareholders in an assessment of the headroom that exists between the
company’s total property value and its borrowings, in the event that there was
to be a reduction in the level of property values.
Interest Cover
As at 31-Dec-18 30-Jun-18
€m €m
Total Debt 259.2 220.9
Total Interest Rate 1.92% 1.90%
Annual Interest Cost 5.0 4.2
Annual passing rent 67.0 58.6
Interest cover - times 13.4 14.0

This metric illustrates the company’s ability to cover the interest cost on its
borrowings from its cash rents, showing the headroom between the two. It is
related to the gearing level, in that if for example the company increases its
level of borrowings to enhance returns to shareholders, the corollary is that its
interest cost will increase in that scenario, the impact of which on its ability to
cover that increased cost from rents can be measured by the interest cover
ratio. Similarly, with stable borrowings but with an increase in interest rates a
shareholder can assess the impact on the company’s ability to service its debt
in that scenario from its interest cover ratio, comparing it to prior periods.
Total Return
Year ended 31-Dec-18 30-Jun-18
€m €m
EPRA net asset value at balance sheet date 1,279.5 1,251.2
Add: Dividends paid in the year 36.8 52.6
Adjusted net asset value 1,316.3 1,303.8
EPRA net asset value at previous balance sheet 1,168.8 1,149.9
date
Increase in adjusted net asset value 147.5 153.9
Total Return for the year 12.6% 13.4%

Total return measures the performance of the company in a given period in

terms of both balance sheet growth and the income distributed to shareholders
by way of dividend, which are the two key components of shareholder return
from REITs. It is also the metric driving the calculation of performance fees
payable to the Investment Manager (if applicable).

62
Investment Initial Yield and Portfolio Initial Yield
As at 31-Dec-18 30-Jun-18
€m €m €m €m
Excl Inc Excl Inc
Purchasers Purchasers Purchasers Purchasers
Costs Costs Costs Costs
Purchaser's Costs 8.46% 8.46%
Investment property 1,437.3 1,558.9 1,362.7 1,478.0
value
Developments and 45.9 49.7 61.7 66.9
land value
Property portfolio 1,483.2 1,608.7 1,424.4 1,544.9
value

Contracted annual rent 74.4 71.7

Investment Initial 4.8% 4.9%

Yield
Portfolio Initial Yield 4.6% 4.6%

Investment Initial Yield – this metric allows shareholders to assess the return on
the company’s portfolio of income producing assets from its contracted rents, being
its stabilised rents once any temporary tenant incentives have expired. The measure,
which is common in our industry, can be compared to that of other real estate
companies for benchmarking purposes, and can be compared to yields on market
transactions, allowing shareholders to make their own assessment as to the potential
for an increase or decrease in values, if they view the company’s yield to be above
or below the yields being achieved on comparable transactions.

Portfolio Initial Yield - as per Investment Initial Yield above, this is in common
use in our industry, but in terms of gauging the return on the entire portfolio
(including development and land assets) rather than from income producing
properties only.

63
COMPANY INFORMATION

Directors Gary Kennedy (Chairman)

(all non-executives) Pat Gunne
Jerome Kennedy
Gary McGann
Stephen Vernon (British)
Rosheen McGuckian

Secretary Niall O’Buachalla

Registered office 32 Molesworth Street

Dublin 2

Registered Number 529378

Investment Manager Green Property REIT Ventures DAC

32 Molesworth Street
Dublin 2

Statutory Auditors PricewaterhouseCoopers

Chartered Accountants and Statutory Audit Firm
One Spencer Dock
North Wall Quay
Dublin 1

Solicitors Arthur Cox

Earlsfort Centre
Earlsfort Terrace
Dublin 2

Principal Bankers Bank of Ireland

39 St. Stephen’s Green
Dublin 2

External Property Valuers CBRE

Connaught House
1 Burlington Road
Dublin 2

Jones Lang LaSalle Limited

Styne House
Hatch Street Upper
Dublin 2

Savills
11 South Mall
Cork

Corporate Brokers Davy

49 Dawson Street
Dublin 2

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 J.P. Morgan Cazenove
29th Floor
25 Bank Street
Canary Wharf
London E14 5JP

Registrar
All general enquiries concerning holdings of shares in Green REIT plc, including notification of change
of address, queries regarding dividend/interest payments or the loss of a certificate, should be addressed
to the Company’s registrar:

Computershare Investor Services (Ireland) Limited

Heron House
Corrig Road
Sandyford Industrial Estate
Dublin 18
Ireland

Our website
Our corporate website gives you access to Company information and includes a copy of our latest
Annual Report and Accounts and copies of all regulatory and other releases issued by the Company.
The website address is www.greenreitplc.com.

Investor queries
Please address queries to the Company’s e-mail address: website@greenreitplc.com, for the attention of
Niall O’Buachalla, or by post to 32 Molesworth Street, Dublin 2.

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GLOSSARY OF TERMS
The following explanations are not intended as technical definitions, but rather are intended to assist the
reader in understanding terms used in this report.

AIFM
An alternative investment fund manager within the meaning of AIFMD.

AIFMD
Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative
Investment Fund Managers.

Basic NAV per share

IFRS net assets divided by the number of shares in issue at the balance sheet date.

BMS
Building management system

Brexit
The referendum decision by the United Kingdom to leave the European Union.

CBD
Central Business District

Contracted annual rent

The value of the annual rent due by a tenant under a lease contract, disregarding any tenant incentives
granted within the lease.

Earnings per share (EPS)

Profit after taxation attributable to owners of the Parent divided by the weighted average number of
ordinary shares in issue during the period.

Economic cycle
The upward and downward movements of levels of gross domestic product and refers to the period of
expansions and contractions in the level of economic activities around a long-term trend.

EPRA
European Public Real Estate Association.

EPRA BPR
EPRA's Best Practices Recommendations (BPR) for financial reporting by listed property companies.

EPRA NAV per share

EPRA net assets divided by the number of shares at the balance sheet date on a diluted basis (see page
34 for further details)

Equivalent yield
The internal rate of return from an investment property reflecting reversions to current market rent and
such items as voids and non-recoverable expenditure but ignoring future changes in capital value.

Estimated rental value (ERV)

ERV is the open market rent that a property can be reasonably expected to attain given its characteristics,
condition, location and local market conditions.

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Gearing
Calculated as the borrowings secured on an individual asset as a percentage of the market value of that
asset, or the aggregate borrowings of a company as a percentage of the market value of the total assets
of the company (also referred to as loan-to-value or LTV ratio). In an investment strategy context,
gearing refers to the use of various financial instruments or borrowed capital to increase the potential
return of an investment.

Gross domestic product (GDP)

The market value of all officially recognised final goods and services produced within a country in a
given period of time.

Group
The Company and its subsidiaries

HVAC
Heating, ventilation and air conditioning.

IAASA
Irish Auditing and Accounting Supervisory Authority

IAS
International Accounting Standards

IFRS
International Financial Reporting Standards

IMA
Investment Manager Agreement entered into by the Company and the Investment Manager (Green
Property REIT Ventures DAC) on 12 July 2013.

Interest cover
The ratio of the company’s total annual passing rent, or cash rent, at a point in time, to its total annualised
loan interest cost based on loans outstanding at that date.

Investment income yield

The current annualised rent produced by investment properties, net of costs, expressed as a percentage
of capital value, after allowing for notional purchaser’s costs.

Investment initial yield

Annual contracted rental income expressed as a percentage of the valuation of income producing
properties at a specified date plus applicable notional purchasers’ costs of acquisition.

Irish REIT Regime

Part 25A of the Taxes Consolidation Act 1997 (as inserted by section 41 of the Finance Act 2013)

LEED
Leadership in Energy and Environmental Design, a widely used green building rating system.

Loan-to-value (LTV)
Calculated as the borrowings secured on an individual asset as a percentage of the market value of that
asset.

Mixed use
A building or complex of buildings that blends a combination of residential, commercial, cultural,
institutional, or industrial uses, where those functions are physically and functionally integrated.

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Multifamily
A classification of housing where multiple separate housing units for residential inhabitants are
contained within one building or several buildings within one complex.

Net Asset Value (or NAV)

The measure shown in a company’s balance sheet of all assets less all liabilities, and is equal to the
equity attributable to shareholders in any company or group.

The net asset value of the company will be measured consistently with International Financial Reporting
Standards (‘IFRSs’) as adopted in the EU, and in particular will include the company’s property assets
at their most recent independently assessed market values and also the company’s debt and hedging
instruments at their most recent independent valuations.

Occupancy
The extent to which a property or portfolio of properties is occupied by a tenant by way of a lease or
license, measured by ERV.

Occupier market
The office, industrial and retail market for lettings.

Passing rent
The annualised cash rental income being received as at a certain date, excluding the net effects of
straight-lining for lease incentives.

Portfolio initial yield

Annual contracted rental income expressed as a percentage of the valuation of the overall property
portfolio at a specified date plus applicable notional purchasers’ costs of acquisition.

Prime asset
A highly regarded real estate asset due to, amongst other things, its location or quality of construction.
An example of prime real estate asset would be a modern office building in the central business district
of a major city.

Property Income
In relation to a company or group, the property profits of the company or group, as the case may be,
calculated using accounting principles, as reduced by revaluation surpluses on the company’s assets or
increased by the revaluation deficits on the company’s assets.

Property Income Distribution (or PID)

A dividend paid by an Irish REIT from its Property Income.

Psf
per square foot

Psm
per square metre

Property LTV
Calculated as the borrowings secured on an individual asset as a percentage of the market value of that
asset, or the aggregate borrowings of a company as a percentage of the market value of the company’s
property portfolio (also referred to as Gearing).

Reversionary
The gap by which the passing rent of a property or portfolio is below that of its ERV.

68
sq ft
square feet

sq m
square metres

TMT
Technology, media and telecommunications

Total return
The movement in net asset value between the beginning and the end of a financial period plus the
dividends paid during the year, expressed as a percentage of the net asset value at the beginning of the
financial period.

Vacancy
The extent to which a property or portfolio of properties is not occupied by a tenant by way of a lease
or license, measured by ERV.

WAULT
The weighted average period of unexpired lease term or if earlier period to the next lease break.

Yield
A measure of return on an asset calculated as the income arising on an asset expressed as a percentage
of the total value of the asset, including costs.

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FORWARD-LOOKING STATEMENTS
This interim results announcement may contain certain forward-looking statements, which are subject
to risks and uncertainties because they relate to expectations, beliefs, projections, future plans and
strategies, anticipated events or trends, and similar expressions concerning matters that are not historical
facts. Such forward-looking statements involve known and unknown risks, uncertainties and other
factors, which may cause the actual results, performance or achievements of the Company or the
industry in which it operates, to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. The forward-looking
statements referred to in this paragraph speak only as at the date of this announcement. The Company
will not undertake any obligation to release publicly any revision or updates to these forward-looking
statements to reflect future events, circumstances, unanticipated events, new information or otherwise
except as required by law or by any appropriate regulatory authority.

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