13th Feb 2019 12:27
LONDON (Alliance News) - Hibernia REIT PLC said Wednesday the value of its portfolio increased 2.5% in the second half of the year, thanks to a record office leasing market in Dublin.
Separately, the Irish real estate investment trust said its chief investment officer is stepping down from the role. Hibernia has started a process to hire a permanent replacement.
From September 30 to December 31, Hibernia's portfolio value increased to EUR1.41 billion. The rise was attributed to the gains made from letting Sir John Rogerson's Quay. At the end of 2018, Hibernia's EPRA NAV stood at 170.1 cents compared to 166.3 cents three months earlier, a 2.3% increase.
A "strong" final quarter saw 3.9 million square feet of Dublin office space let in 2018, a record year according to Hibernia. The office vacancy rate in Dublin at the end of 2018 was 4.6% for grade A space in central Dublin and 6.1% overall, with active demand levels "high".
"We have made good progress with our development assets in the period, securing the letting of 1SJRQ to HubSpot and receiving new grants of planning for two projects in our pipeline, Harcourt Square and Marine House. This has been reflected in a 2.5% uplift in the portfolio value in the three months to the end of December. In addition, our interest at Newlands Cross has grown to 143.7 acres with the acquisition of a further 92.5 acres of land," said Chief Executive Officer Kevin Nowlan.
Nowlan continued: "Demand for office space in Dublin remains high and with our significant pipeline of development opportunities, strong balance sheet with long-term funding and experienced management team, Hibernia continues to be well positioned. In the near term, we are focused on letting the space coming available in the portfolio and completing the outstanding rent reviews."
At December 31, Hibernia had net debt of EUR205 million with a loan to value ratio of 14.5%.
Separately, the real estate investment trust announced Chief Investment Officer Richard Ball will step down at the end of March. Current Senior Investment Manager Edwina Governey will take up the role on an interim basis, subject to approval by the Central Bank of Ireland.
Shares in Hibernia REIT were down 1.4% Wednesday at EUR1.26 each.
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