Press Statement - NAMA increases projected lifetime surplus to Exchequer to €4.5bn from €4.25bn; reports 2021 profit of €195m

NAMA increases projected lifetime surplus to Exchequer to €4.5bn from €4.25bn; reports 2021 profit of €195m

  • Total payments from NAMA to Exchequer now projected to be in the region of €4.9bn, inclusive of its €4.5bn lifetime surplus and €400m corporation tax paid to date.
  • €3bn cash dividends paid to Exchequer by end 2021, with an additional €0.5bn scheduled for 2022.
  • 2021 is the 11th year in a row in which NAMA reported a profit.
  • NAMA exceeded its residential delivery target during 2021 and has now delivered 24,400 new homes, of which 13,300 were NAMA-funded; pipeline contains a further 3,000 under construction or approved for funding, with planning applications lodged for 5,100 more homes and an additional 1,300 units that have planning on sites that will be sold for development.
  • Approximately 95% of NAMA’s original interests in the Docklands SDZ, representing almost 4m square feet of commercial space and over 2,000 homes, have been completed or sold. The remaining 5%, representing approximately 215,000 square feet of commercial space, is under construction.
  • NAMA’s €32 billion deleveraging programme was 98% complete at end 2021, with the carrying value of remaining debtor loans at €0.7bn

Thursday 9th June 2022

The National Asset Management Agency (NAMA) has today published its Annual Report and Financial Statements for 2021.

NAMA is reporting an after-tax profit of €195 million for 2021 – its eleventh consecutive year of profitability and an increase on the €192 million recorded in 2020.

The Agency is also increasing its projected lifetime surplus to €4.5bn, subject to market conditions, from its previous projection of €4.25bn. When added to NAMA’s corporation tax payments to the State totalling €400 million to date, NAMA now expects to contribute in the region of €4.9bn to the Exchequer over the course of its lifetime.

NAMA will make surplus transfer payments totalling €500 million to the Exchequer over the remainder of 2022, which will bring the total transferred to €3.5bn (excluding corporation tax payments of €400 million).

Annual Report – key points (to end-May 2022):

  • During 2021, NAMA generated €0.67 billion in cash (2020: €0.92 billion), including €0.62 billion realised from the sale of loans and property (2020: €0.85 billion).
  • Total cash generation since inception stood at €47 billion at end-May 2022.
  • NAMA has been debt free since redeeming the last of its €31.8 billion debt in March 2020.
  • In June 2021, NAMA completed the sale of an 80% interest in Project Pembroke (the former Irish Glass Bottle site) for €200m, which has capacity to deliver 3,800 homes (including c.950 social housing units), one million square feet of commercial space and various community and social amenities in a key location near Poolbeg, close to Dublin city centre. NAMA retains a 20% interest in this project, enabling the State to benefit from future development profits while limiting taxpayer exposure to development risk. The €200m price achieved significantly exceeded the €125m guide price. Planning has been granted for the first 570 homes on the site (including 143 social and affordable homes).

Residential Delivery

The report sets out the progress that has been made (to end-May 2022):

  • Between the start of 2014 and May 2022, NAMA funded or facilitated the delivery of 24,400 new homes.
  • Of these 24,400 homes, 13,300 were directly funded by NAMA and 11,100 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 3,000 units are under construction or have funding approved in active developments.
  • An additional 6,800 units are in the planning system (planning applications lodged or being prepared), while planning permission has been obtained for a further 1,300 new homes on sites that NAMA debtors or receivers will sell prior to being developed.

Dublin Docklands SDZ

The report sets out the progress that has been made (to end-May 2022):

  • There is capacity for 4.2 million sq. ft. of commercial space and 2,183 residential units to be delivered in the Dublin Docklands when all sites in which NAMA originally held an interest are fully developed. This regeneration will accommodate 20,000 office workers and homes for 5,000 people.
  • Construction complete: Construction is complete on projects comprising 2.38m sq. ft. of commercial space and 606 residential units, representing 57% of NAMA’s original interests
  • Construction underway: Construction is underway on 215,000 sq. ft. of commercial space, representing 5% of NAMA’s original interests.
  • Sites sold for development: Sites with planning permission for 1.57m sq. ft. of commercial space and 1,427 residential units have been sold for development by other parties, representing 37% of NAMA’s original interests.

Plans to wind down NAMA over the period 2022 to 2025

NAMA aims to conclude its work no later than end-December 2025 and has submitted a plan to the Minister for Finance setting out how this will be achieved. During the period 2022 to 2025, in the context of its residual portfolio, NAMA will:

  • Continue its deleveraging activities, including the intensive management of remaining loans and secured assets, in order to maximise disposal proceeds. NAMA aims to achieve an uplift to its lifetime surplus from this activity.
  • Provide approved funding for commercially viable residential development on prevailing market terms. NAMA aims to facilitate the delivery of an additional 1,800 residential units between 2022 and 2025, subject to commercial viability.
  • Asset manage key strategic residential development sites in preparation for their sale.
  • Maximise the number of residential sites that are ready for future development through achievement of suitable planning permissions.
  • Transfer the NARPS social housing portfolio to the Land Development Agency (LDA).

Key financial information:

  • Total cash generated from 2010 to end-2021 was €47bn, including €40.4bn from asset disposals and €6.5bn from non-disposal income.
  • The Agency’s €32bn deleveraging programme was 98% complete at end-2021, with the carrying value of debtor loans reducing to €0.7bn.
  • NAMA’s holdings of cash, cash equivalents and liquid assets stood at €0.75bn at end-2021 (2020: €1.3bn).
  • NAMA’s expected lifetime contribution to the Exchequer, between the projected surplus of €4.5bn and corporation tax payments to date of €400m, is €4.9bn.
  • As at end March 2022, the loans of 144 debtors remained under NAMA management, down from an original 800 debtors; 106 debtors are actively engaging with NAMA, including 43 in support strategies and 63 subject to enforcement with receivers appointed. The remaining 38 debtors are being monitored under forbearance strategies or exit agreements.

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 March 2022, the Agency had delivered 2,687 homes for social housing, exceeding the original target of 2,000 units by 34%.
  • It is estimated that over 8,000 people have been housed in social housing delivered by NAMA.
  • Unfinished Housing Estates: all of the more than 300 unfinished estates to which NAMA had an exposure in 2010 have now been resolved.

The Minister for Finance, Paschal Donohoe TD, said:

“I welcome the publication of NAMA’s Annual Report for 2021, which records another positive year for the Agency.

I am pleased to note the increase of €250 million to NAMA’s projected lifetime surplus, now forecast to be €4.5 billion. €3 billion of this surplus was transferred to the Exchequer by the end of 2021, with a further €500 million expected by the end of 2022.

This report highlights the positive contribution which NAMA continues to make, notwithstanding the recent challenging economic and operating environment. I would like to thank NAMA’s staff and its Board for their commitment and continued focus on delivering the best value from its remaining assets.”

NAMA Chief Executive Brendan McDonagh said:

“Our profit in 2021 is the result of long-term value-add strategies implemented by NAMA over many years. It is our eleventh year of profitability in a row but the size of our profit is remarkable in the context of the late stage of our operations and the much smaller portfolio that we are now managing.

Our performance reflects many factors – the dedication of NAMA’s staff, market conditions and our continued focus on maximising the value of our portfolio for the State. It also reflects our commitment to delivering much-needed new homes, to completing our vision for Dublin Docklands successfully, and to achieving an orderly wind-down of the Agency over the coming years.

I thank the NAMA Chairman, the Board and the people working throughout the Agency for making this success possible.”

NAMA Chairman Aidan Williams said:

“We are pleased to increase our forecast for NAMA’s lifetime surplus and, together with corporation tax that has been paid to date, we are now on course to deliver close to €5 billion for the State over NAMA’s lifetime.

This is a very strong performance and, with €3 billion already transferred to the Exchequer and a further €500 million to be transferred during the remainder of 2022, one that has created a major benefit for the State that everyone can share in.

I thank our Board, staff and management team for their ongoing efforts as NAMA enters its final phase. We look forward to finishing our work over the coming years with the same effectiveness and commitment that has been consistently demonstrated by the Agency.”

Issued on behalf of NAMA by

Gordon MRM

David Clerkin Ray Gordon

Ph: 087 8301779 Ph: 087 2417373

Notes to editors

  • NAMA acquired loans for €31.8bn which were 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 an extra €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.