31st Jul 2019 15:27
(Alliance News) - Hibernia REIT PLC said on Thursday that the settling of eight rent reviews during its most recent four-month period have helped boost contracted annual rent.
From April 1 to date, contracted annual rent rose by EUR1.7 million and two outstanding rent reviews could see it add another EUR1.4 million.
Ahead of its annual general meeting on Thursday, the real estate investment trust also said it acquired a 3.8 acre property in the Malahide Road Industrial Estate, Dublin, for EUR7.9 million. The property is occupied by Bunzl PLC until early 2020 and will generate an annual rent of EUR400,000.
Hibernia also agreed EUR7.4 million in several other acquisitions though most of those were "assets adjacent to existing properties", it said.
The company reiterated that its development work in Cumberland Place, also in Dublin, is scheduled for completion in the first half of 2020.
Hibernia's in-place office portfolio vacancy rate rose to 15% from 12% at its year end in March due to two tenants moving out and the acquisition of 10,000 square feet of space. The company said it has made "good progress" in leasing discussions and its vacancy rate could fall to 5% if all the space under offer is eventually leased.
Chief Executive Kevin Nowlan said: "Tenant take-up in Dublin offices in the first half of 2019 exceeded 1.7 million squared feet, a modest increase on the first half of 2018, and active demand continues to be strong with a number of letting transactions expected to close soon. Investment demand also remains high and volumes in the first half totalled EUR1.80 billion.
"Two of our key near-term priorities are reducing the vacancy rate in our office portfolio and concluding the active rent reviews. With the majority of our vacant space now under offer and eight of the nine rent reviews outstanding at March 31 now agreed, we are making good progress on both fronts.
"We have continued recycling our capital into new opportunities, agreeing several acquisitions for total consideration of EUR15.3 million since 31 March 2019, all of which enhance our existing interests or have potential for significant future investment. Hibernia is well positioned with an experienced management team, an extensive pipeline of accretive development projects and a well-capitalised balance sheet."
Shares in the company were down 2.9% at EUR1.50 each in London on Wednesday afternoon.
Related Shares:
HBRN.LBunzl