Tuesday 22 August 2017

Rental income up over 50pc at Dublin-based real estate investment trust

Hibernia REIT CEO Kevin Nowlan. Photo: El Keegan
Hibernia REIT CEO Kevin Nowlan. Photo: El Keegan

Ellie Donnelly

Hibernia REIT (‘Hibernia’), a Dublin-focused real estate investment trust has reported profit before tax of €119m for year ended 31 March 2017, down from €136m in 2016.

As expected in the current climate, rental income at the company increased massively to €39.7m, up 56.3pc year-on-year.

The portfolio value at the company, who’s properties include a number of buildings in the IFSC, was €1.16bn, up 9.9pc on 2016, according to Hibernia’s annual results.

The net asset value per share, a key performance indicator for property companies, was 146.3 cent, up 11.9pc year-on-year.

Commenting on the results, Kevin Nowlan, CEO of Hibernia said that they were pleased with the strong results, with the company “outperforming the Irish property index, driven particularly by development activity and asset management in the second half [of the year].”

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The EPRA earnings grew substantially in the year to €15m, from €5.1m at March 2016. The earnings were driven by the robust growth in the rental market.

“Our leasing activity has led to a 24pc increase in our contracted rent roll in the year and a 56pc increase in the average unexpired term of our “in-place” office income,” Nowlan said.

The company is expected to issue a final dividend of 1.45 cent per share for year-ended 2017, bringing total for year to 2.20 cent, up 46.7pc from 2016.

Future Prospects

As at 31 March 2017, the Group had three development schemes under way, which will deliver c.295,000 sq. ft. of new and refurbished Grade A office space by mid-2018, of which 25pc was pre-let.

The Group’s pipeline of potential future developments comprises five development schemes which, if undertaken, would deliver over 660,000 sq. ft. of high quality office space when completed.

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“Economic momentum remains strong in Ireland and we are seeing continued interest in Dublin from UK-based occupiers following the UK’s decision to leave the EU: we expect that decisions on destination cities will start to be made in the second half of the year.

We have a portfolio rich in opportunity, an exciting development pipeline and a strong balance sheet for further investment where we see opportunity,” Nowlan said.

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