The National Asset Management Agency (NAMA) has today published its quarterly report and accounts for the third quarter of 2011 and its Annual Statement for 2012. The latter is required under Section 53 of the NAMA Act. The documents were laid before the Houses of the Oireachtas by the Minister for Finance earlier today.

1. Third quarter 2011 Report and Accounts

The main points of the report for the quarter ending 30th September 2011 are:

• NAMA generated over €1.4 billion net cash from operating activities during the quarter, driven by cash receipts from debtors of €1.8 billion.
• Cash outflows included €500 million in net debt repayment (bringing the total amount of debts repaid by NAMA since inception to €1.6 billion). Other outflows included €199 million in interest, expenses and other funding costs and €71 million advanced to debtors to enable them to complete projects and to fund working capital.
• Profit during the third quarter was €317 million. Cumulative profit for the first nine months of 2011 was €526 million.
• NAMA had total cash balances of €1.9 billion at the end of September.
• The percentage of performing loans in the portfolio at the end of September was 21%, down from 23% in the previous quarter. This was largely due to the disposal of a number of income-generating assets.

NAMA also had a very strong final quarter in 2011 and ended the year with €3.8 billion of liquidity.

2. The Annual Statement for 2012.

The Statement sets out the following key priorities for 2012. 

• Ensuring the implementation of schedules for asset sales that have been agreed with debtors.
• Optimising cashflow to NAMA from loans and debtors with a view to paying down 25% of the Agency’s debts (€7.5 bn) by end 2013.
• Adopting an active strategy and establishing a panel for selling loans.
• Establishing mechanisms to attract international investor capital, such as Qualifying Investor Funds (QIFs).
• Development of the Deferred Mortgage initiative for residential properties
• Rollout of vendor finance on the commercial property portfolio

In order to generate sales transactions and to attract new equity into the Irish market, NAMA is willing to provide up to 70% vendor debt finance to purchasers of Irish commercial property which is either under the control of its debtors or of receivers engaged by it. With financial institutions reluctant to underwrite lending to property, NAMA’s initiative is intended to address the serious liquidity constraints faced by the commercial market over recent years.

NAMA has also received approval from the Minister for Finance to launch an initiative aimed at generating residential mortgage transactions.  Consultations are taking place with the EU Commission which is reviewing the initiative from a State Aid perspective.  

Following a rigorous review of the Agency’s costs, the NAMA Board earlier this month approved a new estimate of costs for 2012 of €194 million. This represents a 20% reduction on last September’s provisional estimate.

Commenting on the publication of the accounts and the Annual Statement, NAMA Chairman Frank Daly said the Agency was generating significant cashflows and remained on course to meet the target of paying down 25% of its debt by the end of 2013. 

3. Consolidation of Receiverships – Liam Carroll Group.

Following a period of consultation and planning, NAMA confirms that the consolidation of the Receiverships of properties within the Liam Carroll Group has now taken place.

Prior to the establishment of NAMA, four Receivers had been appointed by a number of banks over properties in the Liam Carroll Group. After the relevant loans were acquired by NAMA, it decided that rationalisation under a single Receiver would simplify the receivership process. The four Receivers were invited to submit a single receivership proposal and Deloitte has now been appointed as the single Receiver. Receiverships handled by PWC, McStay Luby and Kavanagh Fennell have now transferred to Deloitte.

NAMA wishes to acknowledge the professionalism and dedication of all four firms in dealing with the receiverships to date and in the consolidation process.

4. Properties enforced.

NAMA has updated its website listing of properties that have been subject to enforcement action by the Agency. The new information includes all properties which were subject to enforcement action as at 31st December 2011. The list includes 43 properties which were added in December. The total number of properties now listed is 1,093 (some of which are multiple properties such as apartment blocks). The properties to which receivers were appointed during November include residential, development, agricultural and industrial assets mainly located in Kerry and Wexford.

Properties that are listed as being ‘not for sale at present’ will be offered for sale by the relevant receiver as soon as is practicable. The page can be accessed via the following link: www.nama.ie/property/ . Where available, contact details for sales agents are provided. The opening pages of the PDF on this link identify the properties added to the list since its last publication. NAMA updates the listing on a monthly basis.

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