Friday 18 October 2019

Hibernia Reit sees rental income jump

1 Sir John Rogerson’s Quay Dublin
1 Sir John Rogerson’s Quay Dublin
Ellie Donnelly

Ellie Donnelly

Listed landlord and developer Hibernia REIT has reported an EPRA Net Asset Value (NAV) per share of 166.3 cent, up 4.5pc in the six months to 30 September.

This was ahead of Goodbody forecasts of 163.5 cent.

Net rental income at the group was €26.6m, up 21.5pc on prior year.

During the period the value of the group’s property portfolio increased 4pc to €1.3bn, according to a trading update this morning.

Profit before tax at Hibernia was €64m, down from €70.6m in September last year.

"This is another set of benchmark beating results for Hibernia," Colm Lauder, real estate analyst at Goodbody, said.  

"Despite more restrained yield and rental growth in broadly stabilised market conditions, Hibernia’s active asset management abilities and portfolio composition have contributed to a considerable market out-performance in H1-19."

The group also announced that it has leased all the office accommodation in 1 Sir John Rogerson’s Quay Dublin (“1SJRQ”) to marketing and sales software firm HubSpot. 

HubSpot is taking a 20 year lease of 1SJRQ, with 12 years term certain, commencing in June 2019.

The lease covers 112,000 sq. ft. and 31 parking spaces on which HubSpot will pay, after a four month rent free, an initial rent of €6.8m per year, equating to €59.75 per sq. ft. for the office space.

Yesterday the group announced that it has acquired 92.5 acres from the IRFU for initial price of €27m.

The land, located in the Newlands Cross area of west Dublin, is currently zoned for agricultural use.

However, if the land is rezoned within the next 10 years the IRFU will be entitled to an additional payment equal to 44pc of the market value of the lands at that date, minus the initial purchase price, and subject to certain minimum payments. Hibernia Reit also announced the completion of its acquisition of 5.8 acres in the same area for €1.7m, taking its total interests there to 143.7 acres.

Prior to its latest acquisitions, Hibernia held 45.4 acres of land at Newlands Cross, comprising the 14.1 acre Gateway industrial/logistics site which it acquired in 2014 for €10m, and a further 31.3 acres of adjacent agricultural land which it purchased in 2017 for €6m.

"Given the value growth prospects for Irish private rental sector/multi-family, we are buoyed by the new strategic acquisitions at Gateway and Slaney Road (Glasnevin - North Dublin) which can both potentially provide large scale residential development in the longer-term," Mr Lauder added.

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