Interim Management Statement

Hibernia REIT plc - Interim Management Statement

30 July 2015

Hibernia REIT plc ("Hibernia" or the "Company") today issues an interim management statement relating to the period from 1 April 2015 to date, in advance of its Annual General Meeting being held today at 11.30am.

Highlights

· Significant progress on development and refurbishment programme with fit-out of Block 3, Wyckham Point completed ahead of schedule, preparatory works ongoing at Windmill Lane and Sir John Rogerson's Quay, contractors on site at Commerzbank House and a preliminary planning approval received at Harcourt Square

· Acquisition of 80 unit residential complex at Dundrum View for €28m completed and sell-down of Dorville non-core assets continuing

· Early lease surrender by FBD plc at Guild House for payment to Hibernia of €8.8m

Committed and near term development and refurbishment projects

The fit-out of the 213 apartments in Block 3, Wyckham Point has now finished, well ahead of schedule.

At Windmill Lane demolition works have completed and piling has commenced: a building contractor is expected to be appointed shortly. At 1-6 Sir John Rogerson's Quay demolition works are expected to complete in September and we are awaiting conclusion of the revised planning application made in May.

At Commerzbank House, contractors have commenced on site and the refurbishment is on schedule to complete in early 2016: discussions are ongoing with a number of potential tenants for the 55k sq. ft. of space being refurbished.

Development pipeline

At Harcourt Square, preliminary planning approval has been received for the first phase of the redevelopment, totalling 134k sq. ft. of new office space, and at Gateway a planning application for a new access road is expected to be submitted shortly.

Acquisitions and disposals

Having announced the transaction in early June, the Company completed the acquisition of Dundrum View, an 80 unit apartment complex in Dundrum, South Dublin, for c. €28m in late June.

Since year end, 14 units from the Dorville non-core portfolio have been sold or contracted to be sold for a total of €4.2m. Terms are agreed for the sales of a further 25 units for an aggregate sum of €7.4m. On average, sales prices being achieved are c. 20% ahead of the carrying values as at 31 March 2015. The remaining 26 non-core units, with a carrying value of €8.4m, are expected to be sold by the end of the year.

Asset management

At Block 3, Wyckham Point, 138 of the 213 units have been let, with bookings secured for a further 24 units: average rents achieved for the two bed units are €1,700 per month. We expect that the remaining units will be let shortly.

At Guild House, agreement was reached with FBD plc regarding the early surrender of their lease for a total payment to Hibernia of €8.8m, covering surrender premiums, rental top-ups and dilapidations. The transaction enhances Hibernia's options for the building and the adjoining Commerzbank House.

Corporate activity

Work continues on finalising the proposed internalisation of WK Nowlan REIT Management Limited, the Investment Manager: a circular is expected to be posted shortly convening an Extraordinary General Meeting for shareholders to vote on the transaction.

Balance sheet

As at 30 June 2015, Hibernia had cash of €110m and the Company's €100m revolving credit facility was undrawn.

Change of registered office

On 17 July the Investment Manager moved to offices in South Dock House, Hanover Quay, Dublin D02 XW94. The registered address of the Company has changed to the same.

Kevin Nowlan, Chief Executive Officer of the Investment Manager, said:

"We have made a good start to the financial year, with significant progress across our development and refurbishment projects: our residential scheme at Wyckham Point is now completed, well ahead of schedule, and we are on course to deliver significant new city centre office space in Dublin over the coming 36 months.

"With strong tenant demand supported by a growing Irish economy and very low vacancy rates in central Dublin, the outlook is positive. We are particularly excited about our development projects in the South Docks, where we expect to be one of the first to deliver significant new space by the end of 2017.

"We are seeing a high number of investment opportunities and expect to make further selective acquisitions with our usual financial discipline funded by our substantial balance sheet capacity."

ENDS

Contacts:

WK Nowlan REIT Management Limited +353 1 536 9100

Kevin Nowlan

Tom Edwards-Moss

Murray Consultants

Doug Keatinge: +353-86-0374163, dkeatinge@murrayconsultants.ie

Orlagh Ryan: +353-87-6160279, oryan@murrayconsultants.ie 

About Hibernia REIT plc

Hibernia REIT plc is an Irish Real Estate Investment Trust ("REIT") and is listed on the Irish and London Stock Exchanges. The principal activity of the Company is to acquire and hold investments in Irish property (primarily commercial property) with a view to maximising shareholder returns.