Green REIT / Hibernia REIT (new Irish REITs)


#161

GREEN REIT is a decent REIT with people who have experience in successful large scale property investing, and almost always underpaid for Irish assets (hence why some of them managed to stay very wealthy through the GFC).

- mod


#162

Oops

Suffice it to say HIBERNIA is the opposite of GREEN and where as GREEN have pretty much stopped buying (a while ago) HIBERNIA keep ploughing on.

One wants to earn carry, the other wants the annual fee.


#163

Green REIT is putting itself (or its assets) up for sale because its

share price has been “subject to a material and persistent structural discount to its net asset value per share for over three years now”.

It assets are

a €1.5 billion portfolio of prime office and logistics asset (sic),

but its current market cap is around €1.1 billion.

https://www.irishtimes.com/business/commercial-property/green-reit-up-for-sale-as-company-bemoans-performance-of-its-share-price-1.3860769


#164

This interested me. I’ve never considered the individuals involved to be the sharpest tools in in the box but I thought the move into logistics was a clever one. They might be on to something here but it seems odd for them to say that they’re pissed because they think the company is undervalued - if it was it’s an open market company and someone would surely have snapped it up on the QT upping the share place in the process. Do they have assets that they paid 1.5bn for - or a rent roll that suggests 1.5bn? or do they have a set of assets that a wide range of investors have looked at and come to a collective valuation of 1.1bn? I would also be curious to know the vacancy rate on the current assets and how much valuation is based on previously obtained rents or asking rents. This lad thinks they are overvalued - https://simplywall.st/stocks/ie/real-estate/ise-gn1/green-reit-shares/news/how-to-look-at-green-reit-plc-isegn1/

Hibernia REIT have continued to plough aggressively into the Irish market but have a significant number of voids at the moment - there as at least one prominent one in the South docks. The simply wall st guy likes them even less - https://simplywall.st/stocks/ie/real-estate/ise-hbrn/hibernia-reit-shares/news/investing-in-hibernia-reit-plc-isehbrn-what-you-need-to-know/

I’ll be interested to see who, if anybody buys Green. My feeling is that both companies are top heavy with Irish money and that there isn’t a big enough sucker out there to buy.


#165

There are tax implications of course.

[If Green is sold, it may have to pay 25 per cent tax on the increase in the value of any of its properties that are less than three years old, under rules governing Irish real estate investment trusts or reits.

Why do I feel sure that no such tax will be paid?