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Hibernia Reit expects ‘modest’ decline in asset value

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Hibernia boss Kevin Nowlan

Hibernia boss Kevin Nowlan

Hibernia boss Kevin Nowlan

The chief executive of Hibernia Reit, Kevin Nowlan, said he expects a “modest” decline in the company’s net asset value per share over the six months to September 30.

Following a sharp slowdown in investment and leasing transactions in the market due to the lockdown, activity has started to resume and the coming months should provide greater clarity on market rental levels and yields,” Mr Nowlan said.

In a statement ahead of the company’s AGM today, he said Hibernia remains in a “strong position”.

“Our balance sheet is extremely robust, we have a high-quality tenant base and an accretive development pipeline to deliver long-term value for our stakeholders."

It comes as the listed landlord said 98pc of its commercial rent for quarter ended September was now received or on an agreed monthly payment plan.

In its residential portfolio 98pc of rent for July has now been collected.

At June 30 Hibernia had net debt of €235m and cash and undrawn facilities of €160m.

Net of committed expenditure and payment of the final dividend of 3.0c per share on July 31, cash and undrawn facilities totalled €125m.

Quoting figures from estate agent Knight Frank, Hibernia said Covid-19 had a “significant” impact on the volume of investment transactions and lettings in the Dublin market.

Investment deals in the first half of this year totalled €1.1bn, down from €1.8bn in the same period in 2019.

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