Rental income up over 30pc at Hibernia REIT
Net rental income at real estate investment trust Hibernia REIT (‘Hibernia’) increased by 31pc year-on-year to €21.9m in six months to 30 September, according to the group’s half year financial report.
Hibernia recorded a profit before tax of €70.6m for the period, up from €32.4m in September 2016. The figure includes a revaluation surplus.
During the period the value of the company’s investment property portfolio, which includes a number of properties in Dublin’s IFSC, increased by 5.2pc to €1.2bn.
The net asset value per share, a key performance indicator for property companies, was 155.3 cent, up 6.2pc since March 2017.
The company reported EPRA earnings of €9m, up 13.1pc on same period last year.
However, the increase in stamp duty introduced in the budget, which is expected to have an immediate impact on the company, was not included in the results.
Commenting on the results, Kevin Nowlan, CEO of Hibernia, said that demand from domestic and international occupiers for office space in Dublin remained very strong, with 2017 likely to be close to a record year for office take-up.
In addition Mr Nowlan said that the group had started to see some Brexit-related lettings occurring.
"In the longer term Dublin is expected to have one of the highest growth rates in office-based employment among major European cities, which bodes well for future tenant demand," Mr Nowlan said.
During the period Hibernia, which currently has 28 properties and an office occupancy rate of 97pc, completed the development of 1 Windmill Lane delivering 124,000 sq. ft of office space.
Looking forwards in the near and longer-term pipeline Hibernia has five schemes which will total 660,000 sq. ft. of office space post completion.
"We remain optimistic about our prospects: our portfolio is rich in opportunity, we expect to recycle capital and we have flexible, low-cost funding available to support further developments and acquisitions as appropriate," Mr Nowlan said.