18 November 2021

Hibernia REIT PLC Interim Results – November 2021

Results

Hibernia REIT plc (“Hibernia”, the “Company” or the “Group”) today announces results for the six months ended 30 September 2021 (the “period”). Highlights include:

Good progress with strategic priorities of asset clustering and ESG excellence

  • Completion of 2 Cumberland Place and 50 City Quay schemes, delivering 62,500 sq. ft. of new office space
  • Sale of Dockland Central, one of our less energy efficient properties, for €152.3m in Oct-21 (post period end), with the proceeds expected to be recycled into the delivery of the Clanwilliam Quarter and Harcourt Square
  • In advanced discussions regarding a substantial pre-let to KPMG of the 337,000 sq. ft. Harcourt Square development
  • Neil Menzies promoted to Director of Sustainability and Net Zero Carbon Pathway published in Jun-21
  • Four stars achieved in the 2021 GRESB assessment (2020: four stars)

Continued high rent collection rates and increased contracted rent in the period from letting activity

  • 99% of rent due for the six months ended Sep-21 received or on agreed payment terms
  • Similar rates observed for the quarter ended Dec-21
  • Annual contracted rent of €68.2m at Sep-21, up 1.5% (+€1.1m) since Mar-21, and office WAULT of 5.5yrs, down 3.9%
    • New lettings plus uplift in residential rents added €0.7m, net of expiries, breaks and surrenders 
    • Acquisitions added €0.4m of new rent
  • Factoring in activity since period end proforma contracted rent would be €60.8m, down 9.4% since Mar-21
  • Office vacancy rate increased 4pp since Mar-21 to 11%, following completion of developments: this is expected to reduce in the near-term

Robust financial position and performance: interim dividend maintained at FY21 level


As at

30 September 2021

31 March 2021

Movement

Portfolio value

€1,450.4m

€1,427.4m

+0.4%1

Net debt2

€291.7m

€278.8m

4.6%

Group LTV2

20.1%

19.5%

+0.6pp

IFRS NAVPS2

173.5c

173.6c

(0.1)%

EPRA NTAPS2

172.5c

172.7c

(0.1)%

Financial period ended

30 September 2021

30 September 2020

Movement

Net rental income

€31.4m

€32.0m

(2.1)%

Profit/(loss) after tax

€21.2m

(€34.2m)

+161.9%

EPRA earnings2

€20.9m

€22.4m

(6.8)%

Diluted IFRS EPS

3.2c

(5.0c)

+163.9%

EPRA EPS2

3.2c

3.3c

(3.7)%

Interim DPS2

2.0c

2.0c

 
  • Periodic valuer rotation undertaken: Savills appointed, with first valuation of portfolio at Sep-21
  • Portfolio value increased €23.0m in the period or 0.4%1 to €1.45bn (Sep-20: -3.8%1)
    • Our prime offices and future developments outperformed our older offices, residential and industrial/other assets
    • €4.1m in development expenditure, including completion of 2 Cumberland and 50 City Quay (Sep-20: €8.4m)
    • €18.4m invested in two bolt-on property acquisitions (Sep-20: €3.8m)
  • Modest decrease in net rental income due to planned lease expiries at Clanwilliam Court and Marine House
  • Six-month Total Property Return3 of 2.2% vs MSCI Ireland Property All Assets Index (excl. Hibernia) of 2.4% (Sep-20: -1.7% vs Index excl. Hibernia -1.6%)

Balance sheet strength further increased by debt issuance and sale of Dockland Central

  • Issue of €125m of 10- and 12-year US private placement notes in Jul-21 resulted in weighted average debt maturity of 4.8 years at Sep-21 (Mar-21: 3.4 years)
  • Net debt at Sep-21 of €141.3m and LTV2 of 10.9%, factoring in the Dockland Central sale
  • Cash and undrawn facilities net of development and acquisition commitments of €214m, or €365m pro-forma sale of Dockland Central (Mar-21: €110m)

Contacts:

Hibernia REIT plc
Kevin Nowlan, CHIEF EXECUTIVE OFFICER
Tom Edwards-Moss, CHIEF FINANCIAL OFFICER

+353 1 536 9100

We are making good progress with our strategic priorities of asset clustering and ESG excellence, with the key achievements since March 2021 being the completion of the 2 Cumberland Place and 50 City Quay developments and the sale of Dockland Central. We are also in advanced discussions with KPMG regarding a significant pre-let at Harcourt Square.

Our business continues to perform well, with strong rent collection, a stable portfolio valuation and new lettings agreed supporting an interim dividend of 2.0 cent per share, the same as last year.

It has been pleasing to see the pick-up in activity in the Dublin office market since we reported in May, with particular interest in prime, ESG-efficient, city centre space. While the Government’s decision this week to advise a temporary return to working from home is likely to impact activity in the near-term, with our clear strategy, an exciting development pipeline ready to start in 2022 and the team and funding in place to deliver it, we remain optimistic about our longer-term prospects.

Kevin Nowlan

Chief Executive Officer of Hibernia

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.

Results presentation details

There will be a results presentation at 10.00 a.m. Dublin time, today, 18 November 2021. If you think you will want to ask a question at the end, please register for the phone call as you will not be able to do this from the webcast.

Webcast URL:https://www.investis-live.com/hibernia-reit/618000441bc06e0d000d02b8/hrird


Participants - Pre-registration

Log in instructions

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https://www.incommglobalevents.com/registration/client/9196/hibernia-reit-2021-interim-results/
You will receive your access details via email.

During the presentation

 

What to expect

Your line will be muted as you join the call.
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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 Like-for-like change (incl. finance costs) on Investment Property and excluding assets acquired and disposed of during the period
2 An alternative performance measure (“APM”). The Group uses a number of such financial measures, which are not defined under IFRS. In particular, measures defined by EPRA are a way for investors to compare real estate companies. Please see Supplementary Information at the back of this release for further details.
3 Total Property Return is the return of the property portfolio (capital and income) as calculated by MSCI

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