13 November 2018
Hibernia REIT PLC Interim Results – November 2018
Hibernia REIT plc (“Hibernia”, the “Company” or the “Group”) today announces its interim results for the six months to 30 September 2018. Highlights for the period:
Portfolio returns outperforming Dublin market, assisted by development programme
- Six-month total property return1,4 of 5.9% vs IPD Ireland Index of 4.4%
- Portfolio value of €1,329.9m, up 3.9%2 in the period (developments up 11.9%2,3)
- EPRA NAV4 per share of 166.3 cent, up 4.5% in the period
- Net rental income of €26.6m, up 21.5% on prior year (September 2017: €21.9m)
- Profit before tax of €64.0m including revaluation surplus (September 2017: €70.6m)
- EPRA EPS4 of 1.8c, up 38.5% on prior year (September 2017: 1.3c)
Further profitable recycling of capital into new opportunities
- Sales proceeds of €55.6m generated in the period
- Sale of New Century House for €65.3m, modestly ahead of March 2018 value
- €9.7m of acquisitions including 5.8 acres at Gateway, 129 Slaney Road and 50 City Quay
- Since 30 September 2018 a further €27m spent (initial consideration) acquiring 92.5 acres of land neighbouring Hibernia’s existing interests at Gateway (Newlands): Hibernia’s total holding now 143.7 acres
De-risking current developments and growing longer-term pipeline
- Three committed schemes in progress totalling 222,000 sq. ft. of Grade A offices, now >50% let
- 1SJRQ and 2WML (172,000 sq. ft.) both delivering shortly: 1SJRQ offices fully let
- Cumberland Place Phase II (50,000 sq. ft.) expected to complete in H1 2020
- Longer-term pipeline enhanced and now comprises five schemes
- Newlands land holding increased 217% to 143.7 acres through acquisitions
- 129 Slaney Road, a 3.8-acre industrial unit with potential for future rezoning to mixed use, acquired
- Office pipeline grown by up to 8% to 543,000 sq. ft.5 following provisional planning grants
Contracted rents and portfolio WAULT at record levels following 1SJRQ letting
- Following letting of 1SJRQ to HubSpot, annual contracted rent roll4 now €60.9m and “in-place” office portfolio WAULT to earlier of break / expiry now 7.7 years, up 9% and 5% since March 2018, respectively
- Acquired “in-place”6 CBD offices have average rents of €41psf, reversionary potential of 20% and an average period to earlier of rent review or expiry of 2.5 years
- Nine office rent reviews active representing €2.5m of passing rent and with ERV of €4.5m
Low leverage and substantial undrawn facilities for investment
- Net debt4 at 30 September 2018 of €163.9m, LTV4 of 12.3% (March 2018: €202.7m, LTV 15.5%)
- Cash and undrawn facilities of €236.1m, €150.1m net of committed developments and Newlands acquisition
- Expect to diversify sources of debt funding and lengthen average debt maturity in the near term
Continued growth in dividend
- Interim dividend declared of 1.5 cent per share, up 36.4% on prior year (2017: 1.1 cent)
- Expect further growth from increase in rental income (from letting up developments and capturing reversion) and reduction in overheads (end of IMA in November 2018)
Kevin Nowlan, Chief Executive Officer of Hibernia, said:
“It has been a successful six months for Hibernia. Our portfolio returns have continued to outperform the market and we have made good progress with our committed developments and our pipeline of future schemes. With the letting of 1SJRQ to HubSpot we have de-risked over half our current development programme and our contracted rental income and average lease duration have grown to record levels. We continue to recycle capital into assets which we believe will enhance our future returns: in particular we are excited by the potential at Newlands Cross, where we now control 143.7 acres of land.
“Hibernia is approaching five years in existence and I am delighted by the progress we have made in that time. Our portfolio now exceeds €1.3bn in value and our contracted rent roll is over €60m: following the letting of 1SJRQ over half of our contracted rent comes from buildings we have delivered or repositioned. With the expiry of the original Investment Management Agreement in late November 2018 we expect a significant reduction in on-going costs.
“We look to the future with confidence: there is a high level of demand for office and residential space in Dublin, both from tenants and investors, and the Irish economy is growing strongly. Our portfolio is rich in opportunity, we have flexible low-cost funding in place and a talented team.”
Contacts:
Hibernia REIT plc |
+353 1 536 9100 |
Murray Consultants
Doug Keatinge: +353 86 037 4163, [email protected]
Jill Farrelly: +353 87 738 6608, [email protected]
About Hibernia REIT plc
Hibernia REIT plc is an Irish Real Estate Investment Trust ("REIT"), listed on Euronext Dublin and the London Stock Exchange. Hibernia owns and develops property and specialises in Dublin city centre offices.
The results presentation will take place at 9.00 am today: a conference call facility will be available to listen to the presentation live using the following details:
Ireland Dial-In: 01 691 7842
UK Dial-In: +44 (0) 20 3936 2999
Netherlands Dial-In: +31 (0)85 888 7233
United States Dial-In: +1 (0)1 845 709 8568
Access Code: 606157
Disclaimer
This Announcement contains forward-looking statements, which are subject to risks and uncertainties because they relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Group or the industry in which it operates, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements speak only as at the date of this Announcement. The Group will not undertake any obligation to release publicly any revision or updates to these forward-looking statements to reflect future events, circumstances, unanticipated events, new information or otherwise except as required by law or by any appropriate regulatory authority.
1 Total property return is the return of the property portfolio (capital and income) as calculated by MSCI, the producers of the IPD Ireland Index.
2 On a like-for-like basis
3 Developments comprise 1SJRQ, 2WML and Cumberland Phase 2
4 An alternative performance measure (“APM”). The Group uses a number of such financial measures to describe its performance, which are not defined under IFRS and which are therefore considered APMs. In particular, measures defined by EPRA are an important way for investors to compare similar real estate companies. For further information see “Supplementary information” at the end of this report
5 Post completion
6 Excludes refurbishment and development projects