11th Feb 2020 11:21
(Alliance News) - Hibernia REIT PLC on Wednesday said it continues to work on advancing its development pipeline after improved demand in the final quarter of 2019.
The real estate investment trust said the Dublin office letting market was "active" during the final quarter of 2019 following two "relatively quiet" quarters, with 3.3 million square feet leased in the market as a whole in 2019. A year earlier, "a record" 3.9 million square feet was leased in the Dublin office market.
More positively, Hibernia REIT said investment volumes in the market as a whole set a new record in 2019, with over EUR7.2 billion of Irish property transacted, doubled from EUR3.6 billion a year ago.
As for its own activity, the company said it has invested EUR2.5 million in two acquisitions since the end of September 2019, while no disposals were made during that period.
Turning to its property developments, Hibernia REIT said 2 Cumberland Place is on track for completion in the third quarter of 2020. Upon completion, the company said there will be in excess of 185,000 square feet of office accommodation on the Cumberland Place site.
In the period from October 1 to November 11, 2019, Hibernia REIT said it bought back 4.3 million shares, worth EUR6.0 million. This was a part of a EUR25 million share buyback programme announced in April 2019. In total, the company said 17.6 million shares were repurchased and cancelled at an average price of EUR1.42 per share.
"The Dublin office letting market ended 2019 strongly, with a pick-up in demand from tenants of all sizes, after a quieter period in the middle of the year, particularly for smaller occupiers. Levels of active tenant demand remain high and 2020 has started positively," said Chief Executive Kevin Nowlan.
He added: "Hibernia remains well-positioned with an extensive development pipeline, low financial leverage and a talented team."
The stock was trading 0.7% lower in London on Tuesday at EUR1.26 each.
By Evelina Grecenko; [email protected]
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