In building our property portfolio, we focus on office and industrial assets which are suitable for and attractive to government and state bodies and large corporates, particularly multi-nationals. We assess the credit and covenant quality of our tenants as that underpins the security of our rent roll and the income that funds dividends to our shareholders. We like tenants that are anchored in a location, are a part of the specialised supply chains that exist across Ireland, that provide local employment, especially with technical expertise provided by Universities and Institutes of Technology and those foreign owned businesses that are attracted to Ireland by the quality of the workforce, the knowledge base that has taken root in the country and Ireland’s open, outward looking economy.
We invest outside of the traditional central business district of Dublin because we see this as an institutionally under invested market which offers excellent returns to an informed and professional investor. We manage our costs tightly and because most of our cost base is not directly driven by, or linked to, the size of our portfolio, as we make new investments and the rent roll increases that is not matched by an increase in costs and our net revenue grows.
Most of our tenants are significant local employers and we work with them to ensure that their property continues to meets their needs and keeps them in situ. Where possible we engage with both tenants and local communities to make a positive local contribution.
We actively manage our properties, both to maintain, improve and expand properties for the benefit of occupiers but also to ensure we can reduce the environmental impact of those buildings and to maintain and improve their capital value which underpins the asset value on our balance sheet.
Finally, while we are primarily an investor, we will sell buildings where we believe that the sale will improve returns to our shareholders.