Interim Management Statement

Hibernia REIT plc - Interim Management Statement

10 February 2016

Hibernia REIT plc ("Hibernia" or the "Company") today issues an interim management statement relating to the period from 1 October 2015 to date.

Highlights

· Development and refurbishment projects progressing well and remain on track for scheduled completion dates

· Continued strong tenant demand in Dublin and significant interest in Hibernia's marketed near term supply

· Full ownership of Hardwicke House and Montague House acquired via exercise of call option

· Director of Development appointed

Committed and near term development and refurbishment projects

All projects are progressing well and are on schedule.

At Cumberland House contractors are on site and agents have been appointed to market the two floors in the building not pre-leased to Twitter (in total c. 30,000 sq. ft.).

At One Dockland Central the lease to HubSpot of two floors (27,500 sq. ft.) has commenced and the tenant is fitting out the space. Hibernia is in discussions with a number of interested parties regarding the remaining 29,700 sq. ft. of available space.

Acquisitions and disposals

In January Hibernia exercised its option to take direct ownership of Hardwicke House and Montague House for a net payment of €41.8m, excluding costs. This brings the total consideration paid for the two buildings to €60m (c. €64m including costs, equivalent to €725 per sq. ft.).

Since 30 September 2015, 22 units from the Dorville non-core portfolio have been sold or contracted to be sold for a total of €6.9m. Terms are agreed for the sales of a further 11 units for an aggregate sum of €3.2m. On average, sales prices being achieved are c. 17% ahead of the original acquisition values. The remaining 13 non-core units, with a carrying value of €4.8m, are expected to be sold shortly.

Asset management

Bank of New York Mellon ("BNY Mellon") has served notice to exercise its break options over its leases in the Hanover Building in December 2016: currently it occupies all 44,000 sq. ft. of office space and 14 car parking spaces in the building, paying rent of €1.4m per annum. Hibernia is considering its options, with estimated rental values for the space well in excess of the passing rent.

At the Chancery Building Hibernia is in discussions with a number of potential tenants regarding the two floors (c. 11,500 sq. ft.) coming vacant in March 2016.

Corporate activity

Hibernia completed the internalisation of its management team on 5 November 2015. On 2 February 2016, Hibernia announced the appointment of Mark Pollard as Director of Development. Mr Pollard, who joins from the National Asset Management Agency ("NAMA"), will join the Company in early May 2016.

Balance sheet

In late December 2015 the Windmill Lane Partnership ("WLP"), Hibernia's 50:50 joint venture with Starwood at 1 Windmill Lane, entered a three year, non-recourse debt facility with Deutsche Bank of up to €46.7m (Hibernia's share €23.4m). The facility, which is secured on WLP's assets, will be used to fund the development of the one acre Windmill Lane site.

As at 31 December 2015 and factoring in the exercise of the option to acquire Hardwicke House and Montague House, Hibernia had cash of €63m and the Company's debt facilities were undrawn.

Kevin Nowlan, Chief Executive Officer of Hibernia, said:

"We are making good progress across our development and refurbishment programme which will deliver significant new city centre office space in Dublin in the near term, against a backdrop of limited vacancy.

"We are seeing a high level of interest in our buildings from potential tenants and we have flexible funding in place to pursue selective investment opportunities: given a stable economic environment, we remain confident in our outlook."

ENDS

Contacts:

Hibernia REIT plc + 353 1 536 9100

Kevin Nowlan, Chief Executive Officer

Tom Edwards-Moss, Chief Financial Officer

Murray Consultants

Doug Keatinge: +353 86 037 4163, [email protected]

Jill Farrelly: +353 87 738 6608, [email protected] 

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.