Preliminary Results - Hibernia REIT/media/Files/H/... · Hibernia REIT plc PRELIMINARY RESULTS | MAY 2020 5 Business highlights for the financial year 1. Further growth in rental

Preliminary ResultsMay 2020

Hibernia REIT plc PRELIMINARY RESULTS | MAY 2020 2

Disclaimer

This presentation (hereinafter "this document") has been prepared by Hibernia REIT plc (“Hibernia”, the “Company“, “Group”, “we” or “us”) for information purposes only.

This document has been prepared in good faith but the information contained in it has not been

independently verified and does not purport to be comprehensive. This document is neither a prospectus nor an offer nor an invitation to apply for securities. No representation or warranty, express or implied, is given by or on behalf of the Company, its group companies, or any of their

respective shareholders, directors, officers, employees, advisers, agents or any other persons as to the accuracy, completeness, fairness or sufficiency of the information, projections, forecasts or opinions contained in this presentation. In particular, the market data in this document has been

sourced from third parties. Save in the case of fraud, no liability is accepted for any errors, omissions or inaccuracies in any of the information or opinions in this document.

Certain information contained herein may constitute “forward-looking statements” which can be

identified by the use of terms such as “may”, “will”, “should”, “expect”, “anticipate”, “project”, “estimate”, “intend”, “continue”, “target” or “believe” (or negatives thereof) or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or

actual performance of the Group may differ materially from those reflected or contemplated in such forward-looking statements. No representation or warranty is made as to the achievement or reasonableness of, and no reliance should be placed on, such forward-looking statements. There is

no guarantee that the Group will generate a particular rate of return.

Pictured on cover: 1SJRQ in the evening


Agenda

Highlights

Financial results

Market update

Developments

Portfolio management

Conclusion and outlook

Pictured: Dublin’s Convention Centre photographed from South Docks


Results summary

12 months to Mar-20

12 monthsto Mar-19

Portfolio value(1) +2.0% +7.9%

Portfolio value (excl. stamp duty increase)(1,2) +3.5%

Total property return (“TPR”)(3) 5.9% 11.6%

TPR vs. MSCI Ireland Index(4) +1.5pp +4.1pp

EPRA NAV per share +3.5% +8.9%

EPRA NAV per share (excl. stamp duty increase)(2) +5.3%

EPRA earnings per share(5) +39.9% +40.4%

Total accounting return (“TAR”)(6) 5.6% 11.1%

TAR (excl. stamp duty increase)(2,6) +7.5%

(1) Like-for-like change (incl. finance costs & 1.5pp increase in stamp duty) and excluding assets acquired and disposed of during the period(2) Stamp duty on commercial property increased by 1.5pp to 7.5% in Oct-19. At Mar-20 the estimated impact of this for Hibernia was a €22m (-1.5%) reduction in portfolio value(3) TPR is calculated on an “all assets” basis as per MSCI

(4) MSCI/SCSI Ireland Quarterly Property All Assets Index (excl. Hibernia)(5) Excludes arrangement fee write-off in FY19(6) Calculated as EPRA NAV per share growth in period plus dividends per share paid in period


Business highlights for the financial year

1. Further growth in rental income…

• Contracted rent +14.1% to €65.7m(1)

– New lettings added €5.7m

– Rent reviews added €2.7m

• Net rental income +9.9% to €58.6m

2. …and distributable earnings

• Overall overheads cut by €5.9m (-30.6%)

• EPRA EPS +39.9% to 5.5c

• Full year DPS +35.7% to 4.75c

3. De-risking 2 Cumberland Place…

• Lettable office area +13% to 58,000 sq. ft.

• 41% pre-let to 3M in April 2020

• Expected to complete scheme by end of 2020

4. …and making progress with development pipeline

• Office pipeline +5% to 566,000 sq. ft. with new planning grants at Harcourt and Clanwilliam

• Mixed-use pipeline +5% to 154.3 acres following further acquisitions

5. Effective recycling of capital

• FY19 net sales proceeds of €60.3m reinvested in:

– Nine acquisitions for €23.3m(2)

– Development capex of €21.3m

– €25.0m share buyback(3)

6. Focus on sustainability

• Full-time Sustainability Manager joined in January 2020

• Reviewing all aspects of sustainability programme to drive further improvements

(1) Increased to €67.2m following pre-let to 3M in Apr-20(2) Incl. acquisition costs(3) Buyback programme completed in November 2019 with average purchase price of €1.42 per share

Hibernia REIT plc PRELIMINARY RESULTS | MAY 2020

Business update

1. COVID-19 precautions

• Head office staff working from home

• Managed buildings remain accessible for tenants

• Extra, preventative cleaning measures adopted within buildings

• Construction sites in Ireland closed 28 March to 18 May

2. Working closely with our occupiers

• Overall we have a strong tenant base

• We are working to support them as appropriate

• Rent collection statistics to date remain strong

– 93.5% of Q/E June commercial rent collected(1)

– 97% of residential rent for May collected(1)

3. Limited current development exposure

• Only 2 Cumberland Place (58,000 sq. ft.) under construction and due to complete by end of 2020

– 41% pre-let(2)

4. Robust funding position

• 16.5% LTV amongst lowest in European REIT universe

• No maturities until Dec-23

6

(1) As at 26 May 2020(2) In Apr-20 3M pre-let 24,000 sq. ft. in 2 Cumberland taking contracted rent to €67.2m. The Mar-20 ERV of the remaining unlet space in 2 Cumberland is €1.9m

• We are working on “return to work” protocols and plans for tenant staff and Hibernia team covering access control, physical distancing, cleaning and signage

• Activity at 2 Cumberland Place gradually ramping up following end of site shutdowns

Pictured: examples of COVID-19 signage in 1WML


Looking ahead

7

1. Negative market outlook in near term…

• COVID-19 and anticipated recession expected to reduce occupier demand

• Full impact on market rents and property values yet to be felt

– Grade A CBD office vacancy rate of 5.9% at Mar-20

2. …but we continue to believe Dublin has favourable fundamentals in the longer term

• Demand: Continued shift to “service-orientated” jobs, Brexit movers, growing population

• Supply: Limited land (especially in central Dublin), limited development funding

3. We do not forsee a secular decline in city centre offices

• COVID-19 is likely to accelerate changing working patterns

• But:

– HQ offices play a key role in collaboration and exchange of ideas; and

– Health considerations likely to reduce hot-desking and office densities in the near term

4. Hibernia is well positioned for all eventualities

• Low leverage and €136m of uncommitted funding in place

• Stable investment portfolio with WAULT of 6.4 years and exciting future development pipeline

• Seeking further sustainability improvements

• Experienced team


Agenda

Highlights

Financial results

Market update

Developments



Pictured: Retained tramyard gate, 1SJRQ

Hibernia REIT plc

Income statement Mar-20 Mar-19 Change

Net rental income €58.6m €53.3m +9.9%

Revaluation and disposal gain €22.9m €98.1m (76.7)%

Profit after tax €61.0m €123.5m (50.6)%

EPRA earnings €38.1m €27.5m +38.7%

EPRA EPS 5.5c 4.0c +39.9%

Full year dividend per share 4.75c 3.5c +35.7%

Balance sheet Mar-20(1) Mar-19 Change

Portfolio value €1,465.2m €1,395.4m +2.0%(2)

Net debt €241.4m €217.1m +11.2%

Loan to value 16.5% 15.6% +0.9pp

Net assets €1,231.1m €1,218.5m +1.0%

EPRA NAV per share 179.3c 173.3c +3.5%

PRELIMINARY RESULTS | MAY 2020 9

Financial highlights

(1) C&W, the independent valuer, estimates that if stamp duty had not increased by 1.5pp in early Oct-19, the value of the Hibernia portfolio at Mar-20 would be €22m higher (c.+1.5%)(2) LfL change (incl. finance costs). Excluding the increase in stamp duty the LfL change would have been +3.5%

Hibernia REIT plc

173.3c

179.3c

5.5c

(3.8c)

1.0c

(3.2c)

170

172

174

176

178

180

182

184

186

188

190

Mar-19 Investmentproperties reval.

Developmentproperties reval.

EPRA earnings Dividends paid Share buyback &other

Estimated stampduty impact

Mar-20

EPR

A N

AV

pe

r sh

are

(c)

(3)


EPRA NAV per share movement since 31 March 2019

Net valuation uplift: 6.5c

Like-for-like “in-place” office valuation:+2.0% (c.55% ERV impact(2))

2.7c

3.8c(1)

2 Cumberland

(1) Comprises South Docks +4.0c, Traditional Core -0.3c, IFSC 0.2c, Resi 0.7c, Other -0.8c(2) Based on standing office (in-place office) investments only in 12 months to Mar-20(3) Includes revaluation of Group’s head office

159.1 6.8c 6.8c 4.0c (3.4c) - 173.3c

Mar-18 Mar-19

+3.5%IFSC

South Docks

Resi

Other

-

Trad Core

Hibernia REIT plc

€27.5m(1)

€38.1m

€6.2m

€2.1m

(€2.4m)

€7.4m

(€2.0m)(€0.7m)(1)

€10m

€15m

€20m

€25m

€30m

€35m

€40m

€45m

Mar-19 Developmentscompleted in prior

year

Leasing activity Disposals &acquisitions

IMA savings Operating costs Finance costs(net)

Mar-20

EPR

A e

arn

ings

+€4.7m saving+€5.9m


EPRA earnings movement versus year ended 31 March 2019

1SJRQ €5.4m

2WML €0.8m

Disposals (€2.9m)

Acquisitions €0.5m

New lettings €2.5m(2)

Rent reviews €2.0m(3)

Lease terminations

(€2.4m)

Direct property costs (€0.5m)

Admin costs (€1.5m)

(4)

(1) Prior year figure excludes arrangement fee write-off associated with re-financing completed(2) Largely attributable to lettings in 1WML and Observatory(3) Includes income from settled rent reviews in period and two outstanding rent reviews

(4) The Investment Management Agreement (“IMA”) expired in Nov-18 and was replaced by a new incentive scheme, resulting in a net €7.4m saving in the year

€19.4m €4.4m €2.7m (€0.1m) €1.2m €0.4m (€0.5m) €27.5m

Mar-18 Mar-19

1

Revenue items

2

Cost items

+€10.6m+39%

Hibernia REIT plc

Through-cycle LTV target remains 20-30%

PRELIMINARY RESULTS | MAY 2020

(1) Assuming RCF fully drawn(2) Net of committed expenditure(3) Please note LTV as reported elsewhere is calculated as net debt/portfolio value, giving a figure of 16.5%

(4) Based on LTM interest cover(5) Cash basis(6) At Mar-20

12

Robust balance sheet and no debt maturities until December 2023

Capital allocation(5)

(10m)

(35m)

(65m)

(35m)

25m37m

53m 46m45m

21m

18m

136m85m

39m 40m23m

16.5%

(7.5%)

(5.0%)

(2.5%)

0%

2.5%

5.0%

7.5%

10.0%

12.5%

15.0%

17.5%

20.0%

(€75m)

(€50m)

(€25m)

€0m

€25m

€50m

€75m

€100m

€125m

€150m

€175m

€200m

FY16 FY17 FY18 FY19 FY20 FY21

LTV

Cap

ital

de

plo

yed

Asset sales Buyback Capex

Acquisition spend Net spend LTV

ForecastActual

Debt statistics Mar-18 Mar-19 Mar-20

Drawn debt €220m €234m €262m

Net debt €203m €217m €241m

% interest fixed/hedged 91% 128% 76%

% unsecured 0% 100% 100%

Weighted average debt maturity 2.7 years 5.4 years 4.4 years

Cash and undrawn facilities(2) €120m €143m €136m

Current facilities Quantum Cost

RCF due Dec-23 €320m2.00% margin/0.8%

undrawn fee

PP note due Jan-26 €37.5m 2.36% coupon

PP note due Jan-29 €37.5m 2.69% coupon

Total €395m 2.10%(1)

Headroom vs key covenant Requirement At Mar-20 Headroom(6)

Loan to value (gross debt/portfolio value & cash)

<50% 17.5%(3) Portfolio value could fall 65%

Historic interest cover ratio (underlying EBIT/total finance costs)

>1.5x 6.3x(4) Underlying EBIT could fall 76%

Net worth (NAV) >€400m €1,231mNet asset value could

fall 68%

Hibernia REIT plc

Contracted rent:

€65.7m2%

11%

16%

49%

7%5%

9%1%

Office - Insurance & Reinsurance Office - Banking & Capital Markets Office - Govt agency

Office - TMT Office - Professional Services Other

Residential Co-working

In-place office

WAULT(1): 6.4 years


Tenant statistics

Contracted rent by sector/industry Commercial rent(2) collection

(1) WAULT to earlier of break/expiry(2) Commercial tenants are all tenants other than residential

Quarter ending Jun-20 Mar-20 Jun-19

Within seven days 89% 93% 92%

Within 14 days 89% 94% 97%

Within 30 days 90% 98% 97%

Within 60 days 93.5% 99.5% 99.5%

More than 60 days N/A 100% 100%

Monthly rent 2% - -

Deferred rent 3.5% - -

Rent outstanding 1% - 1%

Total 100% 100% 100%

Month May-20 Apr-20 Mar-20

Within 30 days 97% 99% 100%

€m % Sector WAULT(1)

1. HubSpot 10.5 18% TMT 11.2

2. OPW 6.0 10% Govt/state 2.8

3. Twitter 5.1 9% TMT 8.4

4. Zalando 2.9 5% TMT 6.9

5. Autodesk 2.8 5% TMT 10.0

6. Informatica 2.1 4% TMT 9.8

7. Riot Games 2.0 3% TMT 4.3

8. ESB 1.9 3% Govt/state 1.2

9. Travelport 1.8 3% TMT 7.6

10. BNY Mellon 1.6 3% Finance 4.9

Top 10 total 36.7 64% 7.6

Rest of in-place office portfolio 21.0 36% 4.5

Residential rent collection Top 10 office tenants by contracted rent

• The majority of our tenant base (by rent) comprises large companies or state entities

• Rent collection statistics have remained robust to date

Hibernia REIT plc

Potential incremental rent roll from portfolio(1)

(1) Excl. income potential of possible future mixed-use development schemes(2) Excl. Iconic Offices arrangement in Brickhouse (Clanwilliam Court, Block 1)(3) Based on C&W ERVs @ Mar-20

(4) Office reversion (€1.1m; of which €0.6m under review), Residential reversion (€0.2m), Industrial (negative reversion of €0.2m): €1.1m + €0.2m - €0.2m = €1.1m(5) Committed capex (€18m) plus estimated capex per valuer assumptions for Forum & other minor capex(6) Capex based on current build cost incl. contingency but excl. effect of any future construction cost inflation

(7) Per buildable sq. ft.; Book value includes present value of remaining existing income of approx. €38psf at Mar-20. Note: standard purchaser costs should be assumed to be 9.96% @ Mar-20

€65.7m(2)

€75.3m(2)

€95.3m

€8.1m

€3.3m

€30m

€40m

€50m

€60m

€70m

€80m

€90m

€100m

Contractedin-place rent

at Mar-19

Movement Contractedin-place rent

at Mar-20

Vacant assets Reversion Committed schemes Near term portfolio Rent loss fromdeveloping pipeline

office schemes

ERV of pipelineoffice schemes

Potential rent rollincl. office schemes

Re

nt

€57.6m(2)

Potential to grow rent roll in near term and looking further ahead

Rent Reviews €2.7m

Lettings €5.7m

Acquisitions €0.8m

Expiries/breaks/ surrenders

(€1.7m)

Other €0.6m

Office under review: €0.6m(3)

€1.1m(3,4)

Forum €2.3m

Central Quay €1.3m

Remainder €1.6m

€5.2m(3)

2 Cumberland Place(3)

+€9.6m+15%

(€11.1m)(2)

€31.1m(3)

+€20.0m+27%

Marine House

ClanwilliamCourt

Harcourt Square

ClanwilliamCourt

Harcourt Square

Marine House


Delivered Current portfolio and committed schemes (estimated capex of €25m(5) to complete)

Office development pipeline (estimated capex of €295m(6)

to complete)

1 2 3

+€29.6m+45%

Pre-let: €1.5mRemaining: €1.9m(3)

Book value €319psf(7)

Cost to build €550psf(7)


Improving sustainability performance

Substantial reductions made in Hibernia GHG intensity(1)(2)… …but much further to go

• Full-time Sustainability Manager appointed in January 2020

• Real-time energy and resource consumption monitoring system being implemented

• Reviewing all aspects of approach to sustainability including:– Interaction with tenants and suppliers

– Science-based targets

– Pathway to net zero carbon emissions

– Community engagement

• Intend to participate in CDP(3) for first time in 2020. Also will continue to participate in GRESB

Recent awards

Retained

Gold in 2019

1SJRQ development

project

2019 overall score

of 75% (+17pp)

(1) Sustainability data shown on calendar year basis(2) Landlord obtained utilities for office buildings only(3) Carbon Disclosure Project

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018 2019

tCO

2/m

2/a

nn

um

(t=

ton

ne

s)

Absolute LfL


Key financial messages

Strong year, with progress against strategic priorities and mostly favourable market conditions

• EPRA NAVPS +3.5% to 179.3c (+5.3% excluding stamp duty increase)

• EPRA EPS +39.9% to 5.5c, full year DPS +35.7% to 4.75c

Low leverage gives us great flexibility

• LTV 16.5%, significant covenant headroom, no maturities until December 2023

• Available undrawn facilities of €136m(1)

• Fully unsecured debt structure maximises funding alternatives

High quality tenant base paying dividends

• By rent, tenants mostly comprise large companies or government/state entities

• 93.5% of commercial rent for Q/E June 2020 received to date

• 97% of residential rent for month of May 2020 received to date

Looking ahead

• Full extent of negative impact from COVID-19 still unclear

• Starting FY21 with a positive gap between contracted rent and FY20 reported gross rental income

• Will continue to manage our capital carefully while investing for the long term

(1) Net of committed expenditure


Agenda

Highlights

Financial results

Market update

Developments



Pictured: View of North Docks, Dublin

Hibernia REIT plc

Hibernia REIT plc

1.1m in

employment in

the GDA 15%

18%6%

35%

21%

5%

Agriculture, industry and construction Wholesale/retail trade, transportation and storage

Hospitality and food Office-based jobs

Education, health and social work Other


Economic outlook

…office-based jobs make up a large amount of GDA* employment

Source: CSO/Goodbody*excl. R&D and aircraft leasing

2016 2017 2018 2019f 2020f 2021f

Consumption 4.0% 1.6% 3.0% 2.8% (12.5)% 8.0%

Investment 51.7% (31.0)% 9.8% 94.1% (34.3)% 6.7%

Core investment* 11.2% 6.2% 14.6% 2.2% (29.5)% 17.0%

Government 3.5% 3.9% 6.4% 5.6% 8.7% (3.4)%

Domestic demand 20.6% (12.4)% 5.8% 35.3% (21.1)% 5.7%

Core domestic demand* 5.1% 2.9% 5.7% 3.2% (11.7)% 6.7%

GDP 5.0% 7.2% 6.7% 5.5% (10.7)% 6.3%

Sharp economic contraction in 2020 in Ireland now forecast

Source: Bloomberg

National borrowing costs near record lows

Source: CSO @ Q1 2020

Rapid increase in those receiving income support…

(3.0%)

0%

3.0%

6.0%

9.0%

12.0%

15.0%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Yiel

d

Ireland UK Bund US

35% of

employment in

the GDA is office-

based(1)

(1) Office-based jobs; ICT; administrative and support services; financial, insurance and real estate; professional, scientific and technical; public admin and defence, compulsory social security

0%

5%

10%

15%

20%

25%

30%

-

0.1m

0.2m

0.3m

0.4m

0.5m

0.6m

0.7m

0.8m

Jan-20 Feb-20 Mar-20 Apr-20

Un

emp

loym

ent

rate

No

. of

peo

ple

un

emp

loye

d

Traditional Unemployment Number of persons on PUP Monthly Unemployment Rate (%)*

Source: CSO & Department of Employment Affairs and Social Protection

Including the Wage Subsidy Scheme(1) over

40% of the Irish labour force are currently

supported by the state in some way

(1) Wage Subsidy Scheme not included in the COVID-19 adjusted unemployment rate* PUP - Pandemic Unemployment Payment (Commenced Mar-20) * Greater Dublin Area

Hibernia REIT plc

0.0m

1.0m

2.0m

3.0m

4.0m

5.0m

Act

ive

dem

and

(sq

. ft.

)


Dublin office rental market

Source: Knight Frank @ 31 Mar 20

Strong net absorption has underpinned take-up in recent years Vacancy rates remain low and were broadly stable in 6 months to Mar-20

0.0m

0.5m

1.0m

1.5m

2.0m

2.5m

3.0m

3.5m

4.0m

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 ToQ1

2020

Are

a (s

q. f

t.)

Net Take-Up Gross Take-Up 10 Yr. Avg. Gross Take-Up

5.0%

8.1% 8.0%

6.5%5.9%

10.3%

7.6%7.1%

0

2

4

6

8

10

12

City centre Fringe Suburbs OverallDublin

Vac

ancy

rat

e (%

)

Overall vacancy rate Grade A vacancy rate

Supported by strong net take up in recent years, vacancy rates remain low but outlook for occupational market is uncertain

Source: Knight Frank @ 31 Mar 20 Source: Knight Frank @ 31 Mar 20

Unsurprisingly active demand has fallen as companies evaluate COVID-19 impact Big four tech footprint

• Some lettings have signed in Q2 despite COVID-19

• Active demand in Dublin at 2.5m sq. ft. at Apr-20 (4.0m sq. ft. at Apr-19)

Source: Hibernia/Cushman & Wakefield

Q1 to Q3

Q1 to Q3

Q1 to Q3

Q1 to Q3

Q1 to Q3

Q1 to Q30.0m

0.2m

0.4m

0.6m

0.8m

1.0m

1.2m

1.4m

1.6m

Are

a (s

q. f

t.)

Google Microsoft/LinkedIn Amazon Facebook

3%

2%

1%

1%

Note: Percentages based on existing footprint of these occupiers over current total Dublin office stock of 44m sq. ft.

2020

Hibernia REIT plc

# Tenant Sector Take-up % city centre

1 TMT 434k 100%

2 Finance 249k 0%

3 TMT 170k 100%

4 TMT 135k 100%

5 TMT 113k 100%

6 TMT 110k 32%

7 Gambling 90k 0%

8 TMT 85k 0%

9 TMT 68k 0%

10 Pharma 62k 100%

Total 1,516k 63%

Most of the top 10 takers of space in 12 months to Mar-20 are TMT companies


Dublin office rental market II

Serviced office and co-working operators in Dublin Top 10 Dublin takers of space in 12 months to March 2020

Source: Hibernia & Knight Frank @ 31 Mar-20* smaller operators with <10k sq. ft.** modern stock in CBD only (i.e. excl. Georgian etc)

• Accounted for 55% of the total take-up in 12 months to March 2020

• Strong expansion: 85% net to gross

Source: Knight Frank @ 31 Mar-20

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

0k

50k

100k

150k

200k

250k

300k

350k

400k

450k

WeW

ork

Ico

nic

Off

ices

IWG

Pem

bro

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all

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Gu

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ess

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rpri

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e

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ore

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o

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ub

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Off

ice

Su

ites

Oth

er*

% o

f City C

en

tre Sto

ck**

Are

a (s

q. f

t.)

sq. ft. (LHS) % of city centre stock** (RHS)

• In the 12 months to March 2020, serviced office/co-working accounted for 3.3% of gross take-up

• Serviced office/co-working operators occupy approx. 3.6% of Dublin CBD stock**

• For reference, co-working operators’ share of office stock in some other major cities is: London (6.0%), Paris (3.2%), New York (3.9%)


Expected Dublin office development supply

Dublin CBD office development pipeline (Total Dublin CBD office market 22m sq. ft.)

Total Dublin office development pipeline incl. suburbs (Total Dublin office market 44m sq. ft.)

Source: Knight Frank/Hibernia

Some delays occurring with expectations for delivery in 2022 reduced

2.2m

1.2m

2.0m

2.7m

1.2m

1.7m

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2018 2019 2020 2021 2022 2023

Po

ten

tial

sq

. ft.

(m

)

ForecastActual

Expected year of completion

Knight Frank 2019 take-up: 3.3m sq. ft.

Knight Frank 10yr avg. take-up: 2.5m sq. ft.

1.7m

0.7m

1.2m

1.8m

0.8m

1.3m

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2018 2019 2020 2021 2022 2023

Po

ten

tial

sq

. ft.

(m

)

ForecastActualExpected year of completion

Knight Frank 2019 CBD take-up: 2.2m sq. ft.

Knight Frank 10yr avg. CBD take-up: 1.5m sq. ft.

Completed Under construction Probability weighted pipeline Pre-let/let All potential schemes

45% of space currently under

construction is pre-let

43% of space currently under

construction is pre-let


Dublin investment market

Yield progression in Dublin property sectors Robust Dublin investment demand at Mar-20

* Mar-20 vs Mar-19Source: (1) Knight Frank (2) Cushman & Wakefield, mid of range (3) CBRE

Source: Knight Frank

Change YoY*

Mar-19 Sep-19 Mar-20 bps %

Office(1)

Prime 4.00% 4.00% 4.00% 0bps 0%

Second. asset; prime location 4.75% 4.75% 4.75% 0bps 0%

Second. asset; second. location 5.50% 5.25% 5.50% 0bps 0%

Residential(2)

Prime (% net) 4.05% 4.05% 4.00% -5bps 1.2%

Industrial(3)

Prime 5.10% 5.10% 5.00% -10bps 1.9%

Sector Investment demand

Office €3.5bn

Private Rental Sector (residential) €3.0bn

Retail €0.0bn

Industrial €1.0bn

Total €7.5bn

Impact of COVID-19 on investment values yet to be seen but robust investment demand and institutional ownership base should help

Cumulative net investment flows by buyer origin (adjusted to constant prices*)

Source: Knight Frank*cumulative investment flows were adjusted using the prime capital values series to partly remove the effect of capital value appreciation over the time period covered

-€7.0bn

-€6.0bn

-€5.0bn

-€4.0bn

-€3.0bn

-€2.0bn

-€1.0bn

€0.0bn

€1.0bn

€2.0bn

€3.0bn

2013 2014 2015 2016 2017 2018 2019 Q1 2020

United States REITS Europe Asia Ireland


Perspectives on flexible working post COVID-19

“52% of newly remote workers feel more anxious working from home, compared with just 18% who feel less anxious.”

Qualtrics survey of 1,000 people (March 2020)

74% of companies surveyed in the Gartner CFO Survey plan to permanently shift to more remote work post COVID-19. However, 95% of CFOs are planning for no more than 20% of their workforce to work remotely.

Gartner Survey of 317 CFOs and Finance Leaders (April 2020)

“Missing social interaction with work colleagues is identified as the number 1 negative or challenge experienced to date by 54% of those working from home.

Irish National Recruitment Federation survey of 500

people (May 2020)

83% of respondents to a survey of 7,200 people working in Ireland indicated that they would like to work remotely after the COVID-19 crisis is over.

12% indicated they would like to work remotely on a daily basis; 42% indicated several times a week; 29% indicated several times a month; and 16% indicated they do not want to continue working remotely.

Remote Working During COVID-19: Ireland’s National Survey Initial Report. Galway, Ireland: NUI Galway Whitaker Institute

& Western Development Commission.

Only 12% of U.S. workers want to work from home full-time. Most want to return to the workplace, but with critical changes. 70% of people want to work in the office the majority of the week

People expect to return to a different workplace: more space, less desk sharing, and increased support for mobile and virtual work

Gensler, U.S. Work from Home Survey 2020

“Office space will become more varied, much fewer desks and many more spaces to meet, eat, exercise and unwind..”

“These offices will be located in the most vibrant parts of cities, not out of town business parks.”

Cushman & Wakefield, Future of Work and Place (March 2020)

Flexible working will reinforce the importance of high quality office design in vibrant locations


Agenda

Highlights

Financial results

Market update

Developments



Pictured: CGI of development scheme at Harcourt Square

Hibernia REIT plc


Committed development

2 Cumberland Place, D2• Scheme now expanded to 58k sq. ft. of

new Grade A offices (+13%) due to additional floor

• 41% pre-let following 3M leasing in Apr-20 (ahead of ERV)(1)

• Total office space at Cumberland Place post-completion will be c.190k sq. ft.

• Construction work has recommenced following seven week lockdown: completion now expected by end of 2020 assuming no further restrictions

Pictured: 2 Cumberland Place under construction

SectorTotal area post completion

(sq. ft.)Full

purchase price Est. capexEst. total cost (incl.

land) €psf ERV(1)

OfficeERV psf(2) PC date

Office 58k office1k retail/café

€0m €35m €605psf(3) €3.3m €56.53psf • End of 2020 completion expected

(1) Post 31 March 2020, the Group entered into a pre-let with 3M for the 4th, 5th and 6th floors (24k sq. ft.) on a 10 year lease ahead of the September 2019 ERV(2) As per C&W @ Mar 20(3) Office demise only

Hibernia REIT plc


SectorCurrent area

(sq. ft.)

Area post completion

(sq. ft.)

Fullpurchase

price(1) Comments

Office

Marine House Office 41k 49k €30m • Planning granted for 49k sq. ft. refurbishment/extension

• Lower ground floor planning application may add approx. 1.5k sq. ft.

• Flexibility to obtain vacant possession during 2020

Blocks 1, 2, & 5ClanwilliamCourt

Office 93k 141k office

11k ancillary

€59m • Redevelopment opportunity post 2021

• Potential to add significantly to existing NIA across all three blocks and create an office cluster similar to Windmill Quarter (with Marine)

• Provisional planning received for 152k sq. ft. redevelopment (subject to appeal)

Harcourt Square Office 122k 337k office €77m • Leased to OPW until December 2022

• Site offers potential to create cluster of office buildings with shared facilities or a major HQ

• Planning granted for 337k sq. ft of offices (343k incl. reception areas), +9% over previous planning

One EarlsfortTerrace

Office 22k 28k €20m • Current planning permission for two extra floors (6k sq. ft.), expiring July 2021

• Potential for redevelopment as part of wider EarlsfortCentre scheme

Total 278k 566k €186m

Development pipeline: office

(1) Including transaction costs and capex spent to date

+5% since Mar-19 due to new planning permissions


Development pipeline

Harcourt Square, D2

• Planning granted for 337k sq. ft. office development scheme(1) (+9% on previous planning)

• Strategic location close to St. Stephen’s Green

• OPW lease expires in December 2022

• Potential to create another office cluster similar to Windmill Quarter

Hibernia REIT plc

Pictured: CGI of development scheme at Harcourt Square

(1) 343k including reception areas


Development pipeline: mixed-use

(1) Including transaction costs and capex spent to date(2) Initial consideration

Current areaArea post

completion

Fullpurchase

price(1) Comments

Mixed-use

Newlands (Gateway)

143.7 acres N/A €48m(2) • Strategic transport location• Potential for future mixed-use redevelopment subject to

rezoning

Dublin Industrial Estate

119k on 6.8 acres

N/A €11m • Strategic transport location• Potential for future mixed-use development subject to

rezoning

Malahide Road 66k warehouse17k ancillary

officeon 3.8 acres

N/A €8m • Potential for future mixed-use development subject to rezoning

Total mixed-use 154.3 acres N/A €67m

+5% since March 2019 due to new acquisitions


Agenda

Highlights

Financial results

Market update

Developments



Pictured: Concierge and guest, 2 Dockland Central (before COVID-19)


Portfolio summary at March 2020

(1) Yields on unsmoothed values and excluding the adjustment for 1WMLowner-occupied space

(2) Harcourt Square, Clanwilliam Court & Marine House yields are calculated as the passing rent

over the total value (after costs) which includes residual land value. Excludes Iconic Offices income at Clanwilliam Court

(3) Excludes the value of space occupied by Hibernia in 1WML

(4) 2 Cumberland Place(5) Includes 1WML residential element (Hanover Mills)

(6) Assumes 80% net-to-gross and purchaser costs as per C&W @ Mar-20(7) Residential income on net basis assuming Hibernia cost(8) Current rental value assumed as ERV as these assets are valued using a combination of price per

acre and on an income basisNote: differences in summation of totals in the above table are due to rounding*Note: Per RICS guidance C&W have highlighted material uncertainty in their Mar-20 valuations due

to COVID-19

Value as at March 2020 (all assets)*

% of portfolio

Yield on value %(1)Passing

rent (€m)

Contracted rent (€m) ERV (€m)Initial Equivalent Reversionary

1. Dublin CBD Offices

Traditional Core €435m 30% 5.0%(2) 5.0%(2) 5.1%(2) €23.4m €23.4m €24.4m

IFSC €205m 14% 3.6% 4.7% 4.9% €8.3m €8.3m €11.3m

South Docks €557m(3) 38% 3.6% 4.4% 4.4% €22.3m €26.0m €27.7m

Total Dublin CBD Offices €1,197m 82% 4.1%(2) 4.7%(2) 4.7%(2) €54.0m €57.7m €63.4m

2. Dublin CBD Office Development(4) €48m 3% - - - - - €3.3m

3. Dublin Residential(5) €159m(6) 11% 3.7%(7) 4.0%(7) 4.5%(7) €6.1m(7) €6.1m(7) €6.7m(7)

4. Industrial/Land €61m 4% 2.4%(8) 2.8%(8) 2.8%(8) €1.6m €1.9m €1.9m

Total Investment Portfolio €1,465m 100% 4.0%(2,7,8) 4.5%(2,7,8) 4.6%(2,7,8) €61.8m(7) €65.7m(7) €75.3m(7)


Portfolio performance since March 2019

(1) Including acquisition costs(2) Excludes the value of space that was occupied by Hibernia in South Dock House(3) Excludes the value of space occupied by Hibernia in 1WML

*Note: Per RICS guidance C&W have highlighted material uncertainty in their Mar-20 valuations due to COVID-19Note: differences in summation of totals in the above table are due to rounding

Value(all assets) Capex Acquisitions(1) Reval

Stamp duty impact

Value (all assets)

LfL change(€m)

LfL change (%)

Mar-19 Mar-20*

1. Dublin CBD Offices

Traditional Core €444m €2m €2m (€2m) (€11m) €435m (€13m) (2.6%)

IFSC €207m - - €1m (€3m) €205m (€1m) (0.6%)

South Docks €522m(2) €8m €7m €27m (€8m) €557m(3) €21m(2,3) 3.9%(2,3)

Total Dublin CBD Offices €1,173m €10m €9m €26m (€21m) €1,197m(3) €7m(2,3) 0.6%(2,3)

2. Dublin CBD Office Development €16m €14m - €19m (€1m) €48m €18m 61.3%

3. Dublin Residential €153m €1m €1m €5m - €159m €5m 3.2%

4. Industrial/Land €53m - €13m (€6m) - €61m (€3m) (4.9)%

Total Investment Portfolio €1,395m €25m €23m €44m (€22m) €1,465m(3) €28m(2,3) 2.0%(2,3)

Hibernia REIT plc

Tenant BuildingArea

(sq. ft.) Lease typeContracted

rent €mContracted

rent vs. last ERV

% ofGrouprent

Tobreak

Toexpiry Notes

2WML 13k New lease €0.8m Ahead 1% 3yrs 5yrs • Sep-19 commencement

Observatory 8k New licence €0.6m(1) N/A 1% 3yrs 3yrs • Oct-19 commencement

Observatory 6k New lease €0.4m Ahead <1% 5yrs 7yrs • Nov-19 commencement

Central Quay 5k New lease €0.3m Ahead <1% 3yrs 10yrs • Nov-19 commencement

South Dock House 9k New lease €0.6m Ahead 1% 10yrs 20yrs • Dec-19 commencement

2WML 49k New lease €2.9m Ahead 4% 7yrs 15yrs • Feb-20 commencement

Total in FY20 91k €5.7m +9% 9% 6yrs 12yrs

2 Cumberland 24k New lease €1m to €2m Ahead 10yrs 10yrs • To commence in 2021


Office leases agreed and rent reviews settled

Building Review date Rent @ review Rent achievedContracted rent vs.

expected rent(2)

Montague House May-18 €1.2m €2.5m Modestly ahead

Observatory Jul-19 €1.0m €2.0m In line

Hardwicke House Jul-18 €0.5m €0.8m Modestly ahead

Marine House Jun-18 €0.1m €0.2m In line

Total €2.8m €5.5m +2%

(1) Projected average annual net licence fee receivable by Hibernia for the term(2) Per valuer’s assessment at review date

€2.7m incremental new rent

Office leases agreed since March 2019

Office rent reviews settled since March 2019

€4.3m incremental new rent


1,132k sq. ft.

58k sq. ft.

288k sq. ft. Longer-termpipeline

Committeddevelopment

In-place officeportfolio

(1) Excl. arrangement with Iconic Offices at Block 1 Clanwilliam

(2) To earlier of break or expiry

(3) By net lettable office area. Office area only (i.e. excl.retail, basement space, gym, Townhall etc.)

(4) In Apr-20 this increased to €59.2m following 3M pre-let

Office portfolio statistics I

(1) Office areas only (i.e. excl. retail, basement space, gym, townhall etc.)

Portfolio by area

1.5m sq. ft.(1)

Riot Games

Zalando

BNY

Travelport

ESB

Informatica

Autodesk

Twitter

OPW

HubSpot

Remainder

Mar-19 Sep-19 Mar-20

All office contracted rent(1) €50.4m +8% €54.3m +6% €57.7m(4)

In-place office contracted rent(1) €50.4m +8% €54.3m +6% €57.7m

In-place office WAULT(2) 7.5yrs -8% 6.9yrs -7% 6.4yrs

In-place office vacancy(3) 12% - 12% -5pp 7%

Top 10 tenants of in-place portfolio

€57.7m

56%

18%

13%

7%

3%2%

Industry split of in-place tenants

€57.7m

Insurance & ReinsuranceOtherCo-working

Professional Services

Banking & Capital Markets

Government Agency

TMT

1%

37%

18%

10%

9%

5%

5%

4%3%3%3%3%


Office portfolio statistics II

Contracted rent(€m/€psf)

ERV(€m/€psf)

WAULT to review(1)

(yrs)

WAULT to break/expiry

(yrs)% of rent

upwards only

% of next rent review cap

& collar

% of rentMTM(2) at next

lease event

Acquired in-place office portfolio €26.4m (€47psf) €27.1m (€48psf) 2.2yrs 3.3yrs 16% - 84%

Development pipeline assets €11.1m (€42psf) €11.1m (€42psf) 1.9yrs 2.0yrs - - 100%

Investment assets €15.3m (€51psf) €15.9m (€53psf) 2.5yrs 4.3yrs 28% - 72%

Completed office developments(3) €31.3m (€54psf) €31.7m (€55psf) 2.9yrs 9.1yrs - 29% 71%

Whole in-place office portfolio €57.7m (€50psf) €58.8m (€51psf) 2.6yrs 6.4yrs 8% 16% 77%

Vacant in-place office - €4.6m(4) (€49psf) - - - - -

Committed office – unlet(5) - €3.3m (€57psf)(6) - - - - -

Whole in-place office portfolio(after vacancy)

- €66.7m (€52psf) - - - - -

Rent from offices developed or refurbished by Hibernia comfortably exceeds that of those acquired

Note 1: To reconcile with “total potential rent roll” on slide 14: whole in-place office portfolio contracted rent (€57.7m; from above table) plus residential & industrial rent (€6.1m & €1.9m; see slide 30) is total portfolio contracted rent of €65.7m. To this, add vacant offices (€7.9m: €4.6m + €3.3m from above) plus remaining portfolio vacancy (€5.2m (from slide 14) - €4.6m (from above) = €0.6m)plus portfolio reversion €1.1m (see footnote 3 on slide 14) = €65.7m + €7.9m + €0.6m + €1.1m = €75.3m

Note 2: To reconcile with “Total Dublin CBD Offices” ERV on slide 30: €66.7m (from above table) - €3.3m (committed office – unlet) = €63.4m(1) To earlier of review or expiry(2) Mark-to-market

(3) 1 Cumberland Place, SOBO Works, 1&2DC, 1WML, 2WML, 1SJRQ(4) Includes approx. €150k of retail in office buildings(5) In Apr-20 3M pre-let 24,000 sq. ft. in 2 Cumberland taking contracted office rent to €59.2m. The ERV of the unlet space in 2 Cumberland is €1.9m

(6) 2 Cumberland Place


Agenda

Highlights

Financial results

Market update

Developments



Pictured: The Living Wall, 1SJRQ



✓ Year of strong performance

• EPRA NAVPS +3.5%(1)

• EPRA EPS +39.9%, DPS +35.7%

✓ High quality tenants, strong balance sheet and low current development exposure

• Over 93% of commercial rent for June quarter end now collected

• LTV of 16.5%, uncommitted funding of €136m in place

• 2 Cumberland Place well-advanced and building 41% pre-let

✓Near term market outlook negative…

• COVID-19 and anticipated recession expected to reduce occupier demand

• Full impact on market rents and property values yet to be felt

✓…but we believe in Dublin’s attractiveness in the long-term

• Favourable supply-demand dynamics expected in the longer term

• Do not forsee a secular decline in city centre office usage

• Have the pipeline and the team to capitalise on this long-term outlook

(1) 5.3% excl. stamp duty increase

36



Appendix

Pictured: Dublin’s North Docks at dusk seen from the South Docks


Location of portfolio

Dublin overview Central Dublin portfolio(1)

Key: Residential Industrial Office development

Croke ParkFairview Park

M1

M50

M50

N3/M3

N2/M2

M50

Dublin

N81

Howth

Clontarf

DublinAirport

North BullIsland

Portmarnock

Blanchardstown

Clondalkin

Tallaght

Blackrock

Ballsbridge

Rathfarnham

Phibsborough

DrumcondraCastleknock

Sutton

NorthernCross

Beaumont

Ballymun

The Ward

NorthwestBusiness Park

Glenageary

Dundrum

Palmerstown

Kimmage

N11

Ballymount

N4/M4

N7/M7

1 Wyckham Point

2 Gateway Lands

14 Dundrum View

18 Cannon Place

19 Dublin Industrial Estate

20 Malahide Road

1

2

CBD

18

20

Croke ParkFairview Park

River Liffey

Kings Inns

St. Stephens

Green

7

56

10

11

3

4

9

8

13

2

15

16

17

Herbert Park

12

Office

19

19 20

20

14

1 14

1 Wyckham Point

2 Gateway Lands

3 Montague House

4 Hardwicke House

5 2WML

6 1WML

7 Observatory

8 Two Dockland Central

9 One Dockland Central

10 The Forum

11 1SJRQ

12 1&2 Cumberland Place

13 Harcourt Square

14 Dundrum View

15 Central Quay

16 One Earlsfort Terrace

17 Marine House & Clanwilliam Court

18 Cannon Place

19 Dublin Industrial Estate

20 Malahide Road

Source: Google Maps, Visit Dublin, Jones Lang LaSalle(1) Property assets > €7.5m in value as at 31 March 2020

18


Summary of tax changes in Finance Act 2019Tax changes directly impacting Group

Tax changes not directly impacting the Group

• Irish Real Estate Investment Funds (“IREFs”): anti-avoidance rules were introduced for IREFs. Broadly these seek to counteract perceived aggressive tax planning by some IREFs by

disincentivising the use of high levels of debt and excessive costs as a means of reducing profits liable to IREF tax. While the changes do not directly impact the Group, with almost

€17bn of property held within IREF structures at the end of 2017 (source: Central Bank of Ireland) any changes which negatively impact IREFs may indirectly affect the wider

property market

• Schemes of arrangement: stamp duty on corporate acquisitions undertaken by a scheme of arrangement was increased to 1% (previously 0%)

Overview Type of change Effective from Impact for Hibernia

Stamp duty increased from 6% to 7.5% on all commercial property transactions in Ireland

Market change 9 October 2019 (unless a binding contract was in place before this date and it completed by 31 December 2019)

• Cushman & Wakefield, the Group’s valuer, estimates that without the increase in stamp duty, the value of the Group’s portfolio at 31 March 2020 would have been 1.5% higher (€22m)

• This means the increase in stamp duty resulted in a 1.8% (3.2c) reduction in the Group’s NAV per share at 31 March 2020

Increase in the rate of dividend withholding tax (“DWT”) from 20% to 25% for all dividends paid by Irish companies

Market change 1 January 2020 • The change affects shareholders directly• The impact will vary depending on the individual circumstances of each

shareholder and whether relief is available under a tax treaty

Where an entity ceases to be a REIT, there will no longer be a deemed disposal and reacquisition of the assets at market value, unless the REIT has been in existence for 15 years or more

REIT change 9 October 2019 • No immediate change for the Group• If Hibernia ceased to be a REIT before the expiry of the 15 year period

(i.e. before December 2028), this means the original tax base cost of the assets would apply to subsequent disposals, not the market value at the date of cessation.

• This could create latent tax for any bidder and reduce the price it would be prepared to pay to acquire the Group

85% of any proceeds a REIT generates from the sale of a rental property which are not:• Reinvested within a three year window (spanning

one year before and two years afterwards);• Used to repay debt specifically used to acquire,

enhance or develop that rental property; or• Distributed to shareholders within two years of sale

(and thus subject to DWT); will be taxed at 25% (an effective rate of 21.25% on the uninvested proceeds)

REIT change 9 October 2019 • No immediate impact• With low LTV and a pipeline of potential future development projects

with significant capital expenditure requirements, it is unlikely that Hibernia will fail to reinvest any future sales proceeds within the three year window in the near term or the medium term

REITs are now subject to a “wholly and exclusively” test for expenses in arriving at exempt income. Any amount of expenses deemed not to be incurred “wholly and exclusively” for the purposes of the property rental business of the REIT will be subject to a 25% tax charge

REIT change 1 January 2020 • No immediate impact• It is understood that this measure is not intended to create a tax charge

for expenses incurred “wholly and exclusively” for the residual business of the REIT

40


Impact of COVID-19

Risk from COVID-19 Hibernia position / action

Health and safety of staff, tenants, suppliers and the community

• Hibernia head office staff are working from home/dedicated COVID-19 Manager selected• Many tenant employees are also working from home although all our managed buildings remain open and accessible as needed by

tenant employees

• We have prepared our buildings for increasing usage as the lockdown eases with individual building plans covering access control, physical distancing measures, cleaning/sanitising and signage

• 2 Cumberland Place, our only development site, has now reopened, with appropriate precautionary measures, having been closed between 28 March and 18 May 2020

• We are allowing healthcare staff to stay in the 12 un-rented units in Cannon Place on a temporary, pro bono basis while they assist with the public health crisis

Remote working and social distancing measures may disrupt business operations

• As part of our business continuity planning we had already ensured we were prepared for remote working: our main IT systems are cloud-based and many staff have portable work computers

• We are using software such as Microsoft Teams to communicate effectively within the Group (e.g. weekly all-staff update call) and outside it

• 2 Cumberland Place, our only development site, has now reopened: completion is expected to be delayed by c. three months to late 2020

Investment market activity may decline and property values also

• Having one of the lowest leverage levels in the European REIT sector (LTV at March 2020: 16.5%) means Hibernia can withstand a 65% decline in portfolio value without breaching debt covenants (at March 2020)

• €136m of cash and undrawn facilities (net of committed capital expenditure) at March 2020 to invest in opportunities that arise

• Beyond our current committed capital expenditure primarily on 2 Cumberland Place of €18m, we have no current development exposure

Occupational market activity may decline and rental values also

• As above, low leverage (LTV at March 2020: 16.5%) means Hibernia can withstand a 76% decline in earnings before interest and tax (58% decline in rental income) without breaching debt covenants (as at March 2020)

• The WAULT on the Group’s in-place office portfolio is 6.4 years

• The Group has a diverse range of tenants, many of which are large multinational companies with strong balance sheets

Debt funding may become harder to find /more expensive

• We have low leverage (LTV at March 2020: 16.5%), weighted average debt maturity of 4.4 years and no debt maturities before December 2023

• We also have cash and undrawn facilities after committed capital expenditure of €136m and are maintaining a minimum cash balance of €20m for liquidity purposes

• The Group’s fully unsecured debt structure gives us access to the widest possible range of funding alternatives • Beyond our current committed capital expenditure primarily on 2 Cumberland Place of €18m, we have no current development exposure

Tenants may not be able to pay their rent • The Group has a diverse range of tenants, many of which are large multinational companies (56% of our contracted rent is from the TMT sector and Government / State entities), and to date our rent collection statistics have remained strong

• The WAULT on the Group’s in-place office portfolio is 6.4 years

Dividends may need to be cut • We have proposed a final dividend for the financial year of 3.0 cent per share (85% of our EPRA EPS), subject to approval at the AGM and payable in early August as normal

• We intend to continue to comply with the requirement in the REIT legislation to distribute at least 85% of our rental income annually via dividends

• The Group has a diverse range of tenants, many of which are large multinational companies, and to date our rent collection statistics have remained strong

• The business is well-capitalised, with low leverage and significant cash and undrawn facilities (see above)


Top 10 office investment transactions (12 months to March 2020)

# Property Location BuyerBuyer

Nationality SellerPurchase price

(€m) Cap. value (€psf)

1 The Green REIT Porfolio Dublin/Cork Henderson Park Green Reit €1,500m n/a

2 The Cedar Portfolio Dublin 2, 4 & 8 Blackstone Starwood €530m n/a

3 5 Hanover Quay Dublin 2 Union Investment TIO €197m €1,233

4 Nova Atria Dublin 18 Mapletree Investments Blackstone €165m €465

5 The Reflector Dublin 2 Deka Immobilien Park Developments €155m €1,260

6 The Treasury Building Dublin 2 Google Percy Nominees & Jayfield Ltd €115m €923

7 The Citywest Portfolio Dublin 24 Henley BartraDavy Hickey Property Group & Private Vendor

€105m n/a

8 La Touche House Dublin 1AXA IM - Real Assets & BCP Capital

Credit Suisse €84m €877

9 Blocks 4 & 5, Harcourt Centre Dublin 2 Arena Invest Ares & Avestus €54m €942

10 Block B, Elmpark Green Dublin 4 Quadoro Doric Aberdeen Standard €53m €624

€2,959m

Source: Knight Frank @ Mar-20


Source: Hibernia

Top 10 Hibernia office occupiers by contracted rent Top 10 Dublin office lettings in 12 months to March 2020

Hibernia top tenants plus main lettings in market

Tenant Business SectorContracted Rent (€m)

% of Office Rent

Unexpired Term (years)

HubSpot Ireland Ltd TMT 10.5 18% 11.2

OPW Govt/state 6.0 10% 2.8

Twitter Int’l Company TMT 5.1 9% 8.4

Zalando TMT 2.9 5% 6.9

Autodesk Ireland Operations TMT 2.8 5% 10.0

Informatica Ireland EMEA TMT 2.1 4% 9.8

Riot Games TMT 2.0 3% 4.3

Electricity Supply Board Govt/state 1.9 3% 1.2

Travelport Digital Limited TMT 1.8 3% 7.6

BNY Mellon Fund Services Finance 1.6 3% 4.9

Top 10 tenants 36.7 64% 7.6

Remaining tenants 21.0 36% 4.5

Whole office portfolio 57.7 100.0% 6.4

Tenant Industry Building Area (sq. ft.)% of total take-up

LinkedIn TMT 2, 3 & 4 Wilton Park 434k 16%

Mastercard FinanceOne & Two South

County Business Park249k 9%

Amazon TMT Charlemont Square 2 170k 6%

Slack TMT Fitzwilliam 28 135k 5%

Intercom TMTCadenza, Earlsfort

Terrace113k 4%

PaddyPower GamblingBelfield Office Park,

Clonskeagh90k 3%

Guidewire TMTStemple Exchange,

Blanchardstown Corporate Park

85k 3%

Google(1) TMT Block I Central Park 75k 3%

Elavon TMTF1 Cherrywood Business Park

68k 2%

Horizon Pharma 70 St. Stephens Green 62k 2%

Total 1,481k 54%

Source: Knight Frank(1) Google also let c.35k sq. ft. of space in other Dublin office buildings during the 12 months to Mar-20


Consistent growth in distributable income

€4.9m

€12.5m

€16.7m

€21.9m€26.6m €28.6m

€12.8m

€22.9m

€23.8m

€26.7m

€30.0m

€0m

€10m

€20m

€30m

€40m

€50m

€60m

€70m

FY16 FY17 FY18 FY19 FY20

Ne

t re

nta

l in

com

e

Surrender Premium H1 H2

0.7 0.751.1

1.51.75

0.8

1.5

1.9

2.0

3.0

EPRA EPS 5.5c(1)

0.0

1.0

2.0

3.0

4.0

5.0

6.0

FY16 FY17 FY18 FY19 FY20

Pe

r sh

are

(c)

Interim DPS Final DPS EPRA EPS

EPRA EPS and DPS growthNet rental income (NRI) growth

(1) Based on weighted average number of shares in issue


Vacant offices and office leases under review

BuildingArea

(sq. ft.)% of portfolio

vacancyMar-20

ERV(1) (€)Mar-20

ERV (€psf) Comment

The Forum 47k 4% €2.3m €49.50 • Marketing space

Central Quay 25k 2% €1.3m €52.75 • Marketing space

Other 11k 1% €0.4m – • Marketing space

Total 82k 7% €4.0m

(1) Office space only (2) Incl. residential, industrial and retail space

Vacant office space at March 2020

Office leases currently under review

BuildingReview

dateArea

(sq. ft.)Contracted

rent €m% of Group

contracted rent Expected uplift Notes

Hardwicke House Jul-18 30k €1.0m 2% Double digit % • Two rent reviews active

Total 30k €1.0m 2%

ERV of vacancy across entire portfolio(2) of €5.2m and reversionary potential of €1.1m


Balance sheet highlights Summary income statement

Summary financial statements

€ '000 31-Mar-20 31-Mar-19

Investment properties 1,465,183 1,395,418

Assets held for sale - 534

Other non current assets 19,414 14,024

Cash and cash equivalents 28,454 22,372

Trade and other receivables 3,751 40,164

Gross assets 1,516,802 1,472,512

Current liabilities (25,567) (22,378)

Liabilities (non-current) (260,086) (231,595)

Net assets 1,213,149 1,218,539

Equity share capital 700,499 694,242

Retained earnings 638,267 577,270

Dividends paid/Share Buy-back (112,996) (62,130)

Other reserves 5,379 9,157

Total equity 1,231,149 1,218,539

IFRS NAV per share (cent) 179.8 174.7

Diluted IFRS NAV per share (cent) 179.2 173.2

EPRA NAV per share (cent) 179.3 173.3

€ '00012 mths to31-Mar-20

12 mths to31-Mar-19

Revenue 67,930 61,387

Rental income 61,812 56,027

Property expenses (3,227) (2,718)

Net rental income 58,585 53,309

Performance related fees - (5,401)

Administrative expenses(1) (13,393) (13,890)

Net finance (costs) (7,195) (8,221)

Revaluation & other income/(expense):

Investment properties revaluation gains 22,856 95,527

Investment property disposal gain - 2,578

Other gains/ (losses) 10 140

Tax credit/(expense) 180 (583)

Total revaluation/other income: 23,046 97,662

Profit for the period 61,043 123,459

Diluted IFRS EPS (cent) 8.8 17.6

EPRA earnings 38,093 27,472

EPRA EPS (cent) 5.5 4.0

(1) Includes variable remuneration & expected credit loss provisions


Expected Dublin office development supply at November 2019Dublin CBD office development pipeline

(Total Dublin CBD office market 22m sq. ft.)

Total Dublin office development pipeline incl. suburbs

(Total Dublin office market 43m sq. ft.)

Source: Knight Frank/Hibernia

Some delays occurring but overall Dublin office supply picture remains similar to May 2019

1.1m

1.5m

2.2m

2.5m

1.5m

2.3m

2.1m

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2016 2017 2018 2019 2020 2021 2022

Po

ten

tial

sq

. ft.

(m

)

ForecastActual


Knight Frank 2018 take-up: 3.9m sq. ft.

Knight Frank 10yr avg. take-up: 2.3m sq. ft.

1.0m0.9m

1.7m 1.6m

0.8m

1.7m

1.1m

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2016 2017 2018 2019 2020 2021 2022

Po

ten

tial

sq

. ft.

(m

)

ForecastActual


Knight Frank 2018 CBD take-up: 2.8m sq. ft.

Knight Frank 10yr avg. CBD take-up: 1.3m sq. ft.

Completed Under construction Probability weighted pipeline Pre-let/let All potential schemes

Hibernia REIT plc INTERIM RESULTS | NOV 2019 48

Gateway/Newlands Cross

20 mins

Park & Ride

City Centre <30 mins

N7

To Cork

Owned at Mar-20

• Hibernia’s total holding is 143.7 acres acquired at an initial cost of €45m(1)(2)

• Mostly zoned agricultural with some “enterprise & employment”

• 8km from central Dublin and has excellent transport links

• Long term potential for mixed-use development

(1) Pre-transaction costs(2) Upon re-zoning Hibernia will need to pay one of the former owners an amount totaling 44% of the combined value of the lands, less the €27m already paid, subject to potential minimum payments

48

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Preliminary Results - Hibernia REIT/media/Files/H/... · Hibernia REIT plc PRELIMINARY RESULTS | MAY 2020 5 Business highlights for the financial year 1. Further growth in rental