• Projected €4 billion lifetime surplus, subject to market conditions, remains unchanged; further payments to Exchequer will follow in 2021 and 2022.  €2 billion of the surplus has been paid by NAMA to the Exchequer 
• Continued strong progress in residential delivery; 17,380 new homes have been delivered, of which 11,860 were NAMA-funded; another 2,250 under construction or approved for funding; a further 6,200 units with planning permission secured 
• 100% of NAMA’s original interests in the Docklands SDZ, representing 4.2m square feet of commercial space and 2,200 residential units, are under construction, complete, sale agreed or have been sold with the benefit of planning permission 
• NAMA has thus far supplied over 2,600 homes, representing 94% of demand from local authorities and approved housing bodies, for NAMA’s social housing units, housing over 8,000 people and exceeding original social housing delivery target by 30%
• NAMA’s €32 billion deleveraging programme was 96% complete at end 2019, with the carrying value of remaining debtor loans at €1.23 billion

Wednesday 1st July 2020

The National Asset Management Agency (NAMA) has today published its Annual Report and Financial Statements for 2019. 

NAMA is reporting an after-tax profit of €265 million for 2019 – its ninth consecutive year of profitability. This has enabled NAMA to complete the payment of €2 billion to the Exchequer this week, representing the first transfer of NAMA’s projected lifetime surplus of €4 billion, with further transfers totalling €2 billion to follow in 2021 and 2022, subject to market conditions. 

 

Annual Report – key points: 

• During 2019, NAMA generated €1.34 billion in cash (2018: €3.27 billion), including €1.2 billion realised from the sale of loans and property (2018: €3.14 billion). 
• Having completed the redemption of its €30.2 billion senior debt three years ahead of schedule in 2017, in March 2020 NAMA used its strong cash generation to redeem the outstanding €1.064 billion of subordinated debt. This completed the redemption of the €1.6 billion of subordinated debt originally issued by NAMA during 2010 and 2011.
• On 26 May 2020, NAMA acquired the 51% shares held by the Private Investors in National Asset Management Investment Agency DAC for €56.1 million, which paved the way for NAMA to make a surplus distribution to the Exchequer of €2 billion this week. 
• NAMA is debt free and is now 100% owned by the Minister for Finance.

Residential Delivery 

The report sets out the progress that has been made:

• Since the start of 2014 and mid-June 2020, NAMA funded or facilitated the delivery of 17,380 new homes. 
• Of these 17,380 homes, 11,860 were directly funded by NAMA and 5,520 were delivered indirectly on sites for which NAMA had funded planning permission, enabling works, legal costs or holding costs before they were disposed of. NAMA’s residential delivery programme aims to strike an appropriate balance between direct and indirect delivery, de-risking a portion of the programme and delivering significant numbers of new units without putting taxpayer capital at risk.
• An additional 2,250 units are under construction or have funding approved in active developments.
• Planning permission has been obtained for another 6,200 new homes. An additional 8,100 units are in the planning system (planning applications lodged or being prepared).
• 67% of homes delivered by NAMA during 2019 are located in Dublin city and county, with 87% located in the Greater Dublin Area (counties Dublin, Meath, Kildare and Wicklow).

Dublin Docklands SDZ 

The report sets out the progress that has been made:

• The Dublin Docklands SDZ Planning Scheme was approved in May 2014. Now 6 years later 100% of NAMA’s original interests in the Docklands SDZ, representing approximately 4.2 million square feet of commercial space and approximately 2,200 residential units, are under construction, or have been completed or have been sale agreed or sold with the benefit of planning permission. 
• To mid-June 2020, NAMA has facilitated the construction of 1.6 million square feet of commercial accommodation and 228 apartments in the Docklands SDZ.
• Construction is in progress on 1.04 million square feet of commercial accommodation and 378 residential units, with completion of these projects scheduled for 2020 and 2021.
• NAMA retains an interest in 6 sites that are capable of delivering 1.1 million square feet of commercial space and 528 residential units.

Key financial information:

• Total cash generated from 2010 to end-2019 was €45.3 billion, including €39 billion from asset disposals and €6.3 billion from non-disposal income.
• The Agency’s €32 billion deleveraging programme was 96% complete at end-2019, with the carrying value of debtor loans reducing to €1.23 billion at end 2019. 
• NAMA’s holdings of cash, cash equivalents and liquid assets stood at €3.9 billion at end-2019 (2018: €3.2 billion). 
• Total corporation tax paid to the Irish Exchequer by NAMA reached €346 million after a tax charge of €30 million was recorded for 2019 (2018: €109 million). 
• NAMA’s expected lifetime contribution to the Exchequer, between the projected surplus of €4 billion and projected total tax payments of €400m, is €4.4 billion.
• As at end March 2020, the loans of 198 debtors remained under NAMA management; 124 were in support or forbearance strategies while 74 were the subject of enforcement action.

Annual Report – other key points include:

• Social housing: NAMA has invested in the region of €350 million in the repair and purchase of homes for social housing which have been leased or sold to approved housing bodies and local authorities.  By mid-June 2020, the Agency had delivered 2,614 homes for social housing in 20 out of 26 counties, representing 94% of properties for which local authorities confirmed demand and exceeding the original target of 2,000 units by 30%. Over 8,000 people have been housed in social housing delivered by NAMA.
• Unfinished Housing Estates: all 335 estates to which NAMA had an exposure in 2010 have now been resolved or have resolution strategies.

The Minister for Finance, Paschal Donohoe TD, said: 

“I welcome NAMA transferring the first €2bn of its lifetime surplus to the Exchequer this week. This repayment will go some way to reducing the level of borrowing needed to get us through this Covid-19 crisis. The money has been earmarked for spending and will assist the Government in delivering appropriate supports for individuals and those businesses most seriously impacted by Covid-19 in the coming months.

I thank the NAMA Board and staff – in particular its Chairman, Aidan Williams, his predecessor Frank Daly and its Chief Executive, Brendan McDonagh - for their efforts in delivering this surplus and I wish them well as they continue the Agency’s work on behalf of the State.” 

NAMA Chairman Aidan Williams said:

 “In transferring the first €2bn of our lifetime surplus to the Exchequer, NAMA is delivering on its mandate to maximise the value of its assets for the benefit of the State and the taxpayer. 

NAMA’s efforts over the past decade have been in pursuit of one goal and this transfer means everyone in Ireland is sharing in NAMA’s success in reaching that goal.

I want to acknowledge NAMA’s Board, staff and management team, both past and present, for their commitment, effort and diligence in delivering the progress we are reporting today.

However, there is still a lot of work to do and this must be completed against a changed economic backdrop.”

NAMA Chief Executive Brendan McDonagh said:

 “2019 was another year of excellent progress from NAMA, as we made a profit for the ninth year in a row and paved the way for delivering our first payment of €2bn to the Exchequer. 

Our strong financial performance has been complemented by similar contributions to the State in areas such as social housing, supporting businesses, improving housing supply and regenerating the Dublin Docklands.  

Notwithstanding our progress, we are alert to the economic risks created by Covid-19 and will be vigilant in the way we seek to mitigate these risks and maximise our lifetime surplus for the Exchequer. 

I thank the NAMA Board and staff, particularly the Chairman, Aidan Williams, and his predecessor, Frank Daly. Their stewardship has been instrumental in NAMA’s achievements to date.”  

Notes to editors

• NAMA acquired loans for €31.8bn which were only worth €26.2bn at the time of acquisition. 
• It paid €31.8bn for these loans – €26.2bn being their market value at the time plus €5.6bn in State Aid to Participating Institutions. 
• NAMA has completed the full repayment of the €31.8bn it borrowed to acquire these loans. It repaid the last of the €30.2bn Senior Debt included in this figure in October 2017, three years ahead of schedule, and repaid the last of the €1.6bn Subordinated Debt on the first call date for the Subordinated Debt in March 2020.

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