“We have 19 per cent in offices, 19 per cent in retail, 8 per cent in hotels and leisure, 3 per cent industrial, residential 12 per cent, while development land – 9 per cent, and the riskiest part of all – is a lot less than anybody would think” NAMA CEO Brendan McDonagh demonstrating his inability to count percentages to 100% in London yesterday
Well, despite being nearly three months after year end, the NAMA CEO Brendan McDonagh didn’t give us any hint yesterday of the Agency’s performance for 2012. He said that Minister for Finance Michael Noonan would announce the results this coming week. NAMA made a post-impairment profit of €222m for H1, 2012 and a profit before impairment of €141m for Q3,2012.
What Brendan McDonagh did tell the Chartered Accountants (Ireland) London branch was that NAMA collected €1.2bn in rent last year, that’s €100m a month, and that this was evidence that NAMA had not sold off all the low-hanging fruit or performing/better quality loans. NAMA has few development land loans, just 9% according to Brendan but much of the rest is income producing.
What some will be confused by is the fact that only about 15% of NAMA’s loans are performing by reference to the original loan agreements and although further loans are making some contribution, it was understood the effective interest rate on the non-performing loans was less than 1%. A bit of head-scratcher. Given the poor performance of Irish residential and commercial property in 2012, the estimate on here for 2012 post-impairment is €300m though this can be distorted by accounting convolutions.
On hotels, NAMA has an interest in 188 of 900 in Ireland and 36 of these are in Dublin. And NAMA has seen off an inquiry by the Irish Competition Authority that it is distorting the market by supporting loss-making hotels.
On golf clubs, NAMA has an interest in just 17 of the 400 Irish golf clubs, and most are attached to hotels, so again, NAMA is not distorting competition.
NAMA has an interest in only 160 of the 1,500 ghost estates in the country.
The really interesting revelation is that 20% of the assets that NAMA has left TODAY are in London and surrounding areas. You might have thought that with €7bn of London sales that the London portfolio would have been depleted by now. NAMA has about €23bn of assets remaining by reference to NAMA acquisition value less impairment, so based on the %s reported by Mark Hennessy today in the Irish Times
€5bn is in London and surrounding areas
€3bn elsewhere in Britian, that is England, Scotland and Wales
Just €700m (3%) of assets in Northern Ireland
94% of Irish assets are in “Dublin, surrounding counties or major cities”
No word about assets elsewhere, like in the US