IPUT Real Estate, today issues its 2020 Responsibility Report, titled “Greening our Portfolio”. The report sets out IPUT’s clear commitment to responsible investment and details significant progress across environmental, social and governance (ESG) targets in 2020.
To achieve its commitment of developing and operating net zero carbon buildings by 2030; delivering on its placemaking strategy; and building long-term financial resilience for investors, IPUT is investing over €500 million in the regeneration and development of its office and logistics portfolio over the next five years. IPUT is also preparing a detailed net zero carbon pathway to 2030 which will be published later in 2021 and will inform its responsible investment strategy for the next decade.
2020 Full Year Financial Performance
IPUT delivered a strong financial and operating performance in 2020. Rent collection was 97% and a cash dividend of €102.5 million was paid to shareholders representing a yield of 3.8%. Following an active year of lettings and rent reviews, contracted rent increased to €122 million at 2020 year-end with visibility on rental income increasing to €160 million over the next three years.
Niall Gaffney, Chief Executive commented:
Responsible investment has been at the forefront of our investment strategy for over a decade. Our 2020 Report, “Greening our Portfolio” sets out our sustainability journey and the progress we have made over the past year. We achieved a GRESB ‘4-Star’ rating, an inaugural ‘A’ rating from PRI and became the first Irish real estate company to sign up to the World Green Building Council’s Net Zero Carbon Buildings Commitment. Responsible investment is key to addressing climate change issues but is also important to meet the evolving needs of our occupiers and to continuing to build long-term resilience into our business.
As an investor in Dublin real estate for over 50 years, we take our responsibility as the largest property company in the city seriously. As part of our investment strategy, we are making a clear commitment to placemaking across the key neighbourhoods of Dublin where we have an active presence: St Stephen’s Green, Wilton Park and the Docklands. We are investing over €500 million in the development and re-generation of our portfolio over a five year period to create buildings and spaces which contribute to vibrant neighbourhoods, are attractive places to work, and which will enhance the resilience of our portfolio for our investors.
On the back of a solid performance in 2020, we are optimistic for the second half of 2021. We continue to see occupier demand for market-leading, sustainable office and logistics assets, which will sustain the growth of our income and dividends in 2022 and beyond.
Key highlights include:
- Achieved GRESB 4-star rating for both standing and development portfolio
- ‘A’ rating awarded by Principles for Responsible Investment
- First Irish real estate company to join World Green Building Council’s Net Zero Carbon Buildings Commitment; and, joined EP 100, an initiative of the Climate Group
- Reporting aligned with best practice recommendations of Task Force for Climate related Disclosures (TCFD)
- Delivered 19% reduction in GHG emissions year-on-year with enhanced reporting across Scope 1, 2 and 3 emissions
- Launched Making Place research report and a detailed placemaking strategy to consider changes in office working and focus on making cities more enriching and sustainable places
- Secured €200m green finance facility, the largest in the Irish real estate market, to finance sustainable development projects
Net Zero Carbon Pathway to 2030:
In September 2020, IPUT became the first Irish real estate company to sign up to the World Green Building Council’s (WGBC) Net Zero Carbon Buildings Commitment. IPUT is currently developing a detailed pathway to achieve this commitment by 2030 which will be published later in 2021. This will inform the IPUT investment strategy for the next ten years and will include:
- Target of 40% reduction in greenhouse gas emissions by 2030
- 33% energy intensity reduction on our directly managed portfolio by 2025
- Achieving a sustainable certification for at least 80% of office portfolio
- All offices will have a minimum building energy rating (BER) rating of B3 by 2030
- Procurement of 100% renewable energy and increased use of on-site renewables
- Embedding the principles of circular economy into IPUT’s building design and operational management approach
- Re-development and refurbishment of the portfolio in line with our sustainability agenda, to ensure assets remain attractive to global occupiers
- Improving the health and wellbeing of all stakeholders by investing in amenities in our buildings and placemaking in the neighbourhoods in which we are invested