10 November 2016

Hibernia REIT PLC Interim Results – November 2016

10 November 2016

Hibernia REIT plc (“Hibernia”, the “Company” or the “Group”) today announces its interim results for the six months to 30 September 2016. Highlights for the period:

Steady financial performance in first half

  • EPRA NAV per share of 134.6 cent up 2.9% since 31 March 2016
  • EPRA earnings of €8.0m (Sep 2015: €5.2m, excluding one-off surrender premium)
  • Profit before tax of €32.4m (Sep 2015: €73.7m) including revaluation surplus and gains on disposals
  • Interim dividend declared of 0.75 cent per share, representing 50% of dividends paid in respect of prior year, in line with stated policy (Sep 2015: 0.7 cent per share)

Leasing activity adding substantially to contracted rent roll and income duration

  • Contracted rent roll now €46.2m, up 18.5% on 31 March 20161 following major lettings to ComReg and MTT and the acquisition of Clanwilliam Court
  • “In-place” office portfolio income duration and security increased
    • WAULT to earlier of break / expiry now 5.9 years, up 37% on 31 March 16
    • 46% of rent now upward only or capped / collared at next rent review (Mar 16: 36%)
  • Increase in WAULTs driven by completed schemes with WAULT to earlier of break / expiry of 11.1 years and avg. rents of €49psf
  • Remaining “in-place”2 CBD offices have avg. rents of €35psf, reversionary potential of 27% and an avg. period to earlier of rent review or expiry of 2.1 years

Committed development schemes progressing well and on track for delivery over next 20 months

  • Three committed schemes (230,000 sq. ft.) scheduled for completion over next 20 months
    • Windmill and Sir John Rogerson’s Quay remain on track for late 2017 and mid-2018 completions
    • Refurbishment of Two Dockland Central expected to complete in late 2017
  • Three schemes completed in period totalling 191,000 sq. ft. of new space
    • Cumberland delivered profit on cost of more than 59% (71% including value of front site)
    • One Dockland Central and SOBO Works both delivered profits on cost in excess of 30%

Longer term development pipeline bolstered

  • Acquired Blocks 1, 2 & 5 Clanwilliam Court, Dublin 2, giving (together with Marine House) 134,700 sq. ft. of offices with near term income and redevelopment potential once leases expire in 2020/21
    • Planning granted for Phase 2 of redevelopment of Harcourt Square giving total permission for up to 276,500 sq. ft. of offices on the 1.9-acre site: Hibernia seeking vacant possession from OPW to commence redevelopment: court case expected to be heard in early 2017

Building management

  • Building management department formed to take control of the management of the Group’s multi-let properties and maximise quality of service for tenants
  • Cumberland directly managed from Sept and all multi-let buildings expected to follow suit by mid-2017

Low gearing and funding in place to take advantage of opportunities

  • Net debt at 30 September 2016 of €110.5m, LTV of 10.7% (Mar 16: €52.9m, LTV 5.7%)
  • Cash and undrawn facilities of €312m: €234m net of committed development spend


Kevin Nowlan, Chief Executive Officer of Hibernia, said:

We have made good progress in the first half of the financial year, growing our contracted rent roll by 18% and increasing the average duration of our income by 37% through new lettings. The value of our portfolio now exceeds €1bn for the first time, a significant milestone to have passed in less than three years in existence.

“While it is still early days, we are optimistic regarding the Dublin office market’s prospects to benefit from the UK’s decision to leave the EU, although we recognise that the timing and terms remain unclear and there are risks to the wider Irish economy. We are also monitoring closely the impact of the recent property tax changes proposed in the Finance Bill: while these do not affect REITs directly, they may create uncertainty in the investment market in the near term as well as possible opportunities if some parties choose to exit the market.

“As the rate of growth of rents and capital values moderates, development activity and asset management will be increasingly important to delivering performance. With Hibernia owning a portfolio rich in opportunity with a number of committed developments due to complete in the next 20 months and significant firepower to take advantage of any opportunities that arise, we remain positive about our prospects.”

1 Included pre-let refurbishments, residential income net
2 Excludes refurbishment and development projects

Contacts:

Hibernia REIT plc
Kevin Nowlan, Chief Executive Officer
Tom Edwards-Moss, Chief Financial Officer

+353 1 536 9100

Murray Consultants

Doug Keatinge: +353 86 037 4163, [email protected]

Jill Farrelly: +353 87738 6608, [email protected]

About Hibernia REIT plc

Hibernia REIT plc is an Irish Real Estate Investment Trust ("REIT") listed on the Irish and London Stock Exchanges. The principal activity of the Company is to acquire and hold investments in Irish property (primarily commercial property) with a view to maximising shareholder returns.