EPRA Net Disposal Value ("EPRA NDV") cent 171.2 178.3
EPRA vacancy rate % 8.5% 6.9%
Adjusted EPRA vacancy rate % 7.3% 6.9%
Note: These EPRA measures are APMs. Please see Supplementary Information at the end of this report for further details.
2. Top 10 tenants by contracted rent and percentage of contracted rent roll1
Top 10 tenants EURm % Sector
1 HubSpot Ireland Limited 10.5 16% Technology
2 OPW 6.0 9% State entity
3 Twitter International Company 5.1 8% Technology
4 Zalando 2.9 4% Technology
5 Autodesk Ireland Operations 2.8 4% Technology
6 Informatica Ireland EMEA 2.1 3% Technology
7 Riot Games 2.0 3% Technology
8 Travelport Digital Limited 1.8 3% Technology
9 Deloitte 1.7 2% Professional services
10 BNY Mellon Fund Services 1.6 2% Banking and capital markets
Top 10 tenants 36.5 54%
Remaining tenants 30.6 46%
Whole portfolio 67.1 100%
1. Includes net residential rents and excludes income from joint arrangement with Iconic Offices in Clanwilliam Court.
3. Contracted rent by tenant type
Sector EURm %
Technology 29.0 43%
State entities 9.9 15%
Insurance & Investment Management 7.1 10%
Professional services 4.1 6%
Other 2.6 4%
Media 2.3 3%
Banking & Capital Markets 1.6 2%
Aviation 1.2 2%
Car Parking 0.7 1%
Retail & Leisure 0.6 1%
Serviced offices 0.5 1%
Energy 0.2 1%
Industrial assets 1.5 2%
Residential assets 6.0 9%
Total 67.1 100%
4. In-place office contracted rent and WAULT progression
Mar-19 Movement Mar-20 Movement Mar-21
to Mar-20 to Mar-21
All office contracted rent1 EUR50.4m +14% EUR57.7m +3% EUR59.7m
In-place office contracted rent1 EUR50.4m +14% EUR57.7m +1% EUR58.2m
In-place office WAULT2 7.5yrs -15% 6.4yrs -13% 5.6yrs
In-place office vacancy3 12% -5pp 7% - 7%4
1. Excl. arrangement with Iconic Offices at Block 1, Clanwilliam.
2. To earlier of break or expiry.
3. By net lettable office area. Office area only (i.e. excl. retail, basement, gym, Townhall etc.).
4. Excl vacancy in near term development properties - i.e. Marine House and Clanwilliam Court. Including these the vacancy rate would be 9%.
PRINCIPAL RISKS AND UNCERTAINTIES
The Board has carried out a thorough assessment of the principal risks and uncertainties facing the Group, together with the potential impact on the business and the mitigating actions and controls that are in place. In dealing with COVID-19 we have focused not just on the near-term effects, but on the possible long-term impacts. The direct impact of COVID-19 on the Group's business has been relatively modest, the risks it currently presents primarily centre around how quickly economic and property market activity can recover and whether it changes occupier and/or investor behaviour to the detriment of the Group in the longer term. In 2019-20 we identified COVID-19 as an emerging risk: we now see it as an operating risk in all aspects of our business and consider its effects as part of the environment in which we operate.
The principal risks and uncertainties facing the Group are set out below on pages 19 to 23, together with the potential impact and the mitigating actions and controls in place. Further detail on the Group's approach to risk management and mitigation will be included in the 2021 Annual Report, due to be published in June 2021. The main changes to our principal risks since 31 March 2020 are:
Key risks added (excluding amalgamations): ? Uncertain recovery from the COVID-19 pandemic.
Key risks removed (excluding amalgamations): ? COVID-19 pandemic (we now see it as an operating risk in all aspects of our business and therefore do not treat it
as a separate risk). ? Weakening economy. ? Contractor or subcontractor default. ? Poor asset management.
Residual impacts increased: ? Ireland's attractiveness is negatively impacted. ? Failure to motivate and retain team resulting in failure to execute the Group's business plan.
Residual impacts reduced: ? None.
Exposure Key controls and mitigants Key activities in 2020-21
R1: Failure to anticipate or react to market trends resulting in inappropriate business strategy
Failure to anticipate changing trends in
occupier and investor behaviour, resulting
in an inappropriate business strategy and
below target returns. Regular dialogue with existing/ potential
? Close monitoring of tenants.
In our view the pandemic has accelerated trends in the Dublin
structural changes in the workplace, with market and other major Tenant survey undertaken in late 2020 with
tenants increasingly looking for greater international cities positive feedback received and no indication
flexibility, more collaborative space, ? Conversations with of a material reduction in the office space
better amenities, and stronger wellness tenants and stakeholders requirements of our tenants.
and ESG credentials. and annual tenant survey
? Regular review of Staff attended several CPD training seminars
strategy and risks and conferences to keep informed about trends
? Board and Committee in the global market.
Residual risk impact: oversight of all
significant investment A strategy review was completed by the Board
High and divestment in February 2021.
Our Remuneration Policy, reviewed this year,
focuses on near- and longer-term performance
Risk trend: measures to align with strategy and has an
increased focus on ESG performance measures.
R2: Uncertain recovery from the COVID-19 pandemic
? Active monitoring of
While the initial indicators are showing a economic and market
rapid economic recovery from the pandemic indicators, and regular We have been closely monitoring our markets
as the vaccine roll-out progresses, there financial forecasting, and the pace of economic recovery in Ireland
is no certainty this will continue, and stress testing and and internationally.
new strains of the virus could result in scenario planning
further disruption. ? Risk appetite limits are Tenant credit risk assessment is a continuing
in place for key focus: both before and during the leasing
operating indicators. relationship. The impacts of the
? The Group has a talented macro-economic conditions are a particular
Residual risk impact: and experienced team with focus.
in-depth knowledge of our
High market Relationships with professional advisers such
? The Group has a low as tax & legal advisors, property
leverage (LTV of 19.5% at professionals and sustainability experts
Mar-21) and long office assist management to monitor market risk and
Risk trend: WAULT (5.8 years at international developments.
R3: Ireland's attractiveness is negatively impacted
Ireland's economy is highly dependent on
international trade and foreign direct
investment. Regulatory or tax changes,
either domestic or international (e.g.
BEPS, US tax developments), could result The Group is a member of IIP (Irish
in Ireland becoming less attractive for Institutional Property) and continues to
investment versus other jurisdictions. ? The Group regularly engage with government agencies and
This in turn could reduce demand for reviews and manages its politicians, to promote the development of a
Dublin offices from occupiers and risk profile stable, competitive real estate sector in
investors. ? The Group considers a Ireland.
variety of scenarios when
The pandemic will add a considerable considering its strategic The Group engages with government departments
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