The Group's debt funding is fully unsecured and comprises a revolving credit facility ("RCF") and private placement notes. The weighted average maturity of the Group's debt at 31 March 2021 was 3.4 years (March 2020: 4.4 years), with no debt due before December 2023. In May 2021, the Group agreed to issue EUR125m of new private placement notes to five institutional investors, with closing occurring in late July 2021. The new notes will help finance the Group's development pipeline and provide long-term, low-cost funding. Pro-forma for the new private placement notes the weighted average maturity of the Group's debt at 31 March 2021 was 5.2 years. Please see the table below for further details on the Group's debt facilities. 


Instruments                           Quantum Maturity      Interest cost                       Security 
                                                            2.0% over EURIBOR on drawn funds 
Revolving credit facility (five year) EUR320m   December 2023                                     Unsecured 
                                                            0.8% undrawn commitment fee (fixed) 
Private placement notes (seven year)  EUR37.5m  January 2026  2.36% coupon (fixed)                Unsecured 
Private placement notes (ten year)    EUR37.5m  January 2029  2.69% coupon (fixed)                Unsecured 
Total at 31 March 2021                EUR395m   3.4 years 
Private placement notes (ten year)    EUR62.5m  July 2031     1.88% coupon (fixed)                Unsecured 
Private placement notes (twelve year) EUR62.5m  July 2033     1.92% coupon (fixed)                Unsecured 
Total including new issuance          EUR520m   5.2 years

At 31 March 2021, net debt was EUR278.8m (March 2020: EUR241.4m), equating to an LTV of 19.5% (March 2020: 16.5%). The main capital expenditure items driving the increase in net debt in the financial year were development expenditure of EUR16.8m, acquisition expenditure of EUR11.1m and the share buyback of EUR25m (please see further details below in capital management). Cash and undrawn facilities at 31 March 2021 amounted to EUR116m or EUR110m, net of committed expenditure (March 2020: EUR154m and EUR136m, respectively). Pro-forma for the new private placement notes, cash and undrawn facilities at 31 March 2021 amounted to EUR241m or EUR235m, net of committed expenditure. Assuming full investment of the available facilities in property, including the new private placement notes, the LTV, based on market values at 31 March 2021, would be c. 31%.

The Group has significant headroom on the financial covenants on its borrowings: the table below outlines the principal financial covenants and the headroom above each at 31 March 2021. 


Key covenant    Calculation                Requirement At 31 March Headroom to covenant limit 
                                                       21 
Loan to value   Gross debt/(portfolio      <50%        20.8%1      Portfolio value would have to fall 59% before breach 
                value + cash)                                      (March 2020: 65%) 
Interest cover  Underlying EBIT/total      >1.5x       6.4x2       Underlying EBIT would have to fall 77% before breach 
ratio           finance costs                                      (March 2020: 76%) 
Net worth       Net Asset Value            >EUR400m      EUR1,149m     Net Asset Value would have to fall 65% before breach 
                                                                   (March 2020: 68%)  1. Reported LTV is calculated as net debt/portfolio value, giving a ratio of 19.5%.  2. Based on 12-month historic interest cover at 31 March 2021. Interest rate hedging

Group hedging policy: to ensure the majority of the interest rate risk on drawn debt balances is fixed or hedged.

In December 2020, the Group entered interest rate caps on EUR200m of notional debt for a premium of EUR0.6m, taking advantage of the low interest rate expectations at the time. These caps have a strike rate of 0.25% EURIBOR and cover the five-year period to December 2025. The Group's existing interest rate hedging instruments on EUR125m of notional debt, which have a strike rate of 0.75% EURIBOR, are expected to expire in December 2021. At 31 March 2021 the Group's interest rate risk on its RCF drawings of EUR227m (2020: EUR187m) were mitigated by these instruments, which cover EUR325m of notional exposure (2020: EUR125m) and the Group had EUR75m of fixed coupon private placement notes (2020: EUR75m). This means 143% of the interest rate risk on the RCF drawings was hedged (2020: 67%) and 132% of the Group's overall interest rate risk on its debt was fixed or hedged (2020: 76%). The "over-hedged" position at 31 March 2021 results in no additional financial risk to the Group. Please see the table below for further details on the Group's hedging instruments at 31 March 2021. 


Instrument    Notional Strike rate Exercise date Effective date Termination date 
Cap           EUR125m    0.75%       n/a           February 2019  December 2021 
Swaption      EUR125m    0.75%       December 2021 December 2021  December 2023 
Cap           EUR200m    0.25%       n/a           December 2020  December 2025 Capital management

In August 2020, given the prevailing share price, we announced a EUR25m share buyback programme to complete the return to shareholders of the proceeds of the sale of 77 Sir John Rogerson's Quay, which were received in early 2019. The share buyback programme completed on 16 November 2020, at which point 23.1m shares had been repurchased and cancelled at an average purchase price per share of EUR1.08. The buyback programme was accretive to both EPRA NTAPS and EPRA EPS, with the effects seen particularly in the second half of the financial year, when the majority of the shares were repurchased and cancelled. No shares are being held in treasury. Rent collection

Our tenants are important stakeholders in our business, and we have been working closely with them to offer support, where needed, in the current circumstances. This has included allowing some tenants to pay rent monthly in advance rather than quarterly in advance on a temporary basis and, in a limited number of cases, rent deferrals or waivers. On average our rent collection rates in the financial year averaged 99% across our commercial and residential properties. Commercial tenants[1]

As shown in the table below, our commercial rent collection has remained strong since the start of the pandemic. 


                                      Quarter ending 
Commercial rent                                        FY21 
                                      Jun-21 (Q1 FY22) 
Rent received 
Within seven days                     88%              89% 
Within 14 days                        92%              91% 
Within 30 days                        94%              94% 
Within 60 days                        97%              98.5% 
Rent received at 24 May 2021          97%              98.5% 
Rent on payment plans 
Monthly rent not yet due              2%               - 
Rent deferred                         -                0.5% 
Rent on payment plans at 24 May 2021  2%               0.5% 
Rent unpaid 
Rent due                              1%               0.5% 
Rent waived                           -                0.5% 
Rent unpaid at 24 May 2021            1%               1% Residential tenants[2]

At close of business on 24 May 2021, 98% of the rent due for the month of May had been received and the occupancy rate in our residential units was 94%. At the same point in April, 98% of that month's contracted rent had been received and the occupancy rate was 93%. We have now received 99% of the April rent due. Across FY21 we have now received 99% of rent due and the occupancy rate averaged 94%. Dividend

Group dividend policy: to distribute 85-90% of rental profits via dividends each financial year, in compliance with the requirement of the Irish REIT legislation to distribute at least 85%. The interim dividend in a financial year will usually be 30-50% of the total ordinary dividends paid in respect of the prior financial year.

The Board has proposed a final dividend of 3.4 cent per share (March 2020: 3.0 cent), taking the total dividend for the financial year to 5.4 cent per share. This is a 13.7% increase on prior year (March 2020: 4.75 cent) and represents 86% of EPRA EPS for the financial year (March 2020: 86%). Subject to approval at the Group's AGM on 27 July 2021, the final dividend is expected to be paid on 30 July 2021 to shareholders on the register at 2 July 2021. The final dividend will be a Property Income Distribution in respect of the Group's property rental business, as defined under the Irish REIT legislation.

Selected portfolio information

1. Summary EPRA measures 


                                                       Financial year ended Financial year ended 
EPRA performance measure                         Unit 
                                                       31 March 2021        31 March 2020 
EPRA earnings                                    EUR'000 42,223               38,093 
EPRA EPS                                         cent  6.3                  5.5 
Diluted EPRA EPS                                 cent   6.2                  5.5 
EPRA cost ratio - including direct vacancy costs %     25.0%                26.8% 
EPRA cost ratio - excluding direct vacancy costs %     23.5%                25.2% 
EPRA performance measure                         Unit   As at 31 March 2021  As at 31 March 2020 
EPRA Net Initial Yield ("NIY")                   %     4.4%                 4.1% 
EPRA "topped-up" NIY                             %     4.4%                 4.4% 
IFRS NAV                                         EUR'000 1,148,638            1,231,149 
IFRS NAV per share                               cent  173.6                179.8 
EPRA Net Reinstatement Value ("EPRA NRV")        cent  192.7                199.5 
EPRA Net Tangible Assets ("EPRA NTA")            cent  172.7                179.2

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