Hibernia REIT Final AGM Notice – 2019

Hibernia REIT plc (“Hibernia”, the “Company” or the “Group”) today announces results for the financial year to 31 March 2019. Highlights for the year:

Portfolio returns continue to outperform the Irish market, assisted by developments

• 12-month total property return¹ of 11.6% vs MSCI Ireland Property Index (excl. Hibernia) of 7.5%
• Portfolio value of €1,395.4m, up 7.9%² in the year and 3.8%² in H2 (developments up 27.3%² in the year)
• EPRA NAV³ per share of 173.3 cent, up 8.9% in the year and 4.2% in H2
• Net rental income of €53.3m, up 16.6% on prior year (March 2018: €45.7m)
• Profit before tax of €124.0m including revaluation surplus and disposal gains (March 2018: €107.1m)
• EPRA EPS³ of 4.0 cent, up 40.4% on prior year (March 2018: 2.8 cent)

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Disciplined capital allocation: sales proceeds being reinvested or returned to shareholders

• Sale of two properties for €100.3m⁴ (both modestly ahead of book value, with one completing after year end)
• €40.0m⁴ reinvested in seven acquisitions, including the purchase of 98.3 acres of land at Newlands in late 2018
• Share buyback programme launched in April 2019 with initial quantum of €25m
• Capital reorganisation resolution to be proposed at AGM in July to enhance flexibility for capital management

Completing current developments and advancing longer-term pipeline

• Two schemes delivered, totalling 172,000 sq ft of Grade A offices (>65% let), completing Windmill Quarter
• 2 Cumberland Place, 50,000 sq ft of new Grade A offices, on track to complete in H1 2020
• Longer-term pipeline being expanded and progressed and now comprises six schemes
  • Newlands land holding increased to 143.7 acres through acquisitions
  • Office pipeline grown 6.5% to 538,000 sq ft after planning grants at Harcourt Square and Marine House

Growing income and WAULTs despite asset sales

• Annual contracted rent roll now €57.6m, up 2.9% since March 2018, and in-place office portfolio WAULT to earlier of break/expiry of 7.5 years, up 2.7% in the year
  • EPRA like-for-like net rental growth³ of 7.6%

• Reversionary potential of acquired in-place⁵ CBD offices of €3.6m and average period to capture of 2.1 years
  • Nine office rent reviews active at March 2019 representing €2.5m of passing rent and ERV of €4.6m
• Office portfolio vacancy of 12%⁶ at March 2019 (March 2018: 3%⁶), following completion of 2WML and tenant break in the Forum: focus on reducing this in the near term
  • ERV of vacant office space: €8.0m

Low leverage: debt refinanced, extending term and diversifying sources of funding

• Net debt³ at 31 March 2019 of €217.1m, LTV³ of 15.6% (March 2018: €202.7m, LTV³ 15.5%)
• Debt refinanced in December 2018, moving to unsecured structure and adding US private placement notes
  • Weighted average debt maturity at March 2019 of 5.4 years (March 2018: 2.7 years)
• Significant funding capacity: cash and undrawn facilities of €178m, €143m net of committed capital expenditure

Dividend continues to grow as income increases

• Final dividend of 2.0 cent per share bringing total for the year to 3.5 cent, up 16.7% (2018: 3.0 cent)
• Further increase in rental income and reduction in costs (following expiry of IMA in Nov 2018) likely

Kevin Nowlan, Chief Executive Officer of Hibernia, said:

“Hibernia’s portfolio returns continue to outperform the market and we are reporting another set of strong financial results, including increasing our net rental income and our full year dividend by over 16%.  We have made good progress strategically in the year, finishing two development schemes to complete the Windmill Quarter and agreeing a large letting to HubSpot.  We have also received new grants of planning for our future office developments at Marine House and Harcourt Square and successfully refinanced our debt.

“We have continued to recycle capital, selling assets worth over €100m and reinvesting €85m in new acquisitions and our developments, where we expect better future returns. In April 2019 we announced our intention to return €35m to shareholders, starting with a €25m share buyback.  This will continue our progress towards our leverage target and will be value-enhancing for shareholders.

“Demand for office and residential accommodation in Dublin remains high and the Irish economy continues to show a good rate of growth and strong job creation. With our substantial pipeline of accretive development opportunities, well-capitalised balance sheet with long-term funding, and experienced management team, Hibernia continues to be well positioned.  We will maintain our disciplined approach to capital allocation and in the near term we are focused on letting the vacant space in our portfolio and completing the outstanding rent reviews.”

Contacts:

Murray Consultants           
Doug Keatinge: +353 86 037 4163, dkeatinge@murraygroup.ie               
Jill Farrelly: +353 87 738 6608, jfarrelly@murraygroup.ie

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, 23 May 2019: a conference call facility will be available to listen to the presentation live using the following details:

Ireland dial-in: +353 (0)1 691 7842
UK dial-in:  +44 (0)20 3936 2999     
United States dial-in:  +1 (0)1 845 709 8568
All other locations: +44 (0) 20 3936 2999
Access Code: 241734

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.

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¹ Total property return is the return of the property portfolio (capital and income) as calculated by MSCI
² On a like-for-like basis
³ 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 announcement<!–
⁴ Net of costs
⁵ Excludes refurbishment and development projects
⁶ By lettable area –>