Interim Management Statement

Hibernia REIT plc - Interim Management Statement

22 July 2014

Hibernia REIT plc ("Hibernia" or the "Company") today issues an interim management statement relating to the period from 1 April 2014 to date, in advance of its Annual General Meeting being held today at 11.30am.

1 April to 22 July 2014

Hibernia has been highly active in the period, completing eight acquisitions totalling €267m, primarily in the central Dublin office sector. These have come from both off-market and on-market purchases of both direct property and secured loans, utilising the management's extensive network of contacts. In addition three new hires including that of CFO were made, bringing the management team to 12.

Hibernia's property portfolio now comprises (by cost): 74% central Dublin offices, 2% central Dublin office development land, 21% Dublin residential and 3% Dublin industrial / logistics and has a net initial yield of 4.1% (4.7% post rent frees and abatements). Management believes the portfolio has strong potential for increases in rental rates in future. The office space is over 99% occupied on weighted average contracted rents of €33psf., well below current estimated rental values for prime central Dublin offices of €40-45psf., with rental values projected to rise further. Furthermore the portfolio has near term development opportunities from the completion of the 213 residential units at Wyckham Point, and in the medium term, the Windmill Lane and Gateway sites.

Following completion of the Guild House and Commerzbank House acquisition (announced on 15 July 2014) €336m has been invested since the IPO in December 2013 (over 90% of net proceeds raised), with a further €63m committed. The Company continues to consider all available funding options, including debt, equity and joint ventures and in the first instance is seeking to put in place debt on its existing equity base.

Office acquisitions completed in the period

1. New Century House, Dublin 1

Off-market acquisition of c. 80,000 sq. ft. office building in IFSC for €47m

2. Montague House & Hardwicke House, Dublin 2

Off-market, partially deferred acquisition via loans of two office buildings totalling c. 88,500 sq. ft. for €60m. Transaction initially via €18.25m loan investment with right to take control of buildings at any time up to mid-2016 for a further €41.75m

3. Chancery Building & Apartments, Dublin 2

Off-market acquisition for €16m, via secured loans, of c. 34,000 sq. ft. of office building, four 2-bed apartments and small 0.05 acre site with planning consent for small office development or student accommodation

4. Hanover Building, Dublin 2

Off-market acquisition, via secured loans, of building with c. 44,500 sq. ft. of office space and c. 11,500 sq. ft. of retail space for €20.2m

5. Windmill Lane Site, Dublin 2

Off-market acquisition of 1 acre development site adjoining Hanover Building for €7.5m. The site has the existing planning consent for 125,000 sq. ft. of office space, 9,000 sq. ft. of retail and 15 residential units

6. Observatory Building, Dublin 2

On-market acquisition of c. 84,000 sq. ft. office building, eight partially completed live/work units and two vacant retail units for €51.5m

7. Guild House & Commerzbank House, Dublin 1

Off-market acquisition of two adjoining office buildings in the IFSC totalling c. 144,000 sq. ft acquired for €90.75m

Industrial acquisitions completed in the period

Gateway Site, Dublin 22

On-market acquisition of c. 178,000 sq. ft. of logistics facilities on a 14.1 acre site by the Dublin orbital motorway (M50) for €10.1m

Kevin Nowlan, Chief Executive Officer, WK Nowlan REIT Management Limited, the Investment Manager, said:

"We are delighted with the progress we have made since our financial year end in March. We have now invested over 90% of the funds raised at IPO in a portfolio consisting primarily of central Dublin offices with significant reversionary and value-add potential.

"We continue to see a very high level of transaction volumes in the Dublin office market: within this we are finding attractive acquisitions that meet our selection criteria, particularly in the off-market and loan spaces. We welcome the recent statement by the Minister for Finance regarding the acceleration of the National Asset Management Agency's disposal programme which we believe will further increase the supply of available loan and property portfolios.

"Given the significant number of attractive investment opportunities, the Company continues to consider all available funding options, including debt, equity and joint ventures, as would be expected in the ordinary course of business. The Company will look to update the market as and when appropriate and remains confident it can create further shareholder value for its investors."

ENDS 

Contacts:

WK Nowlan REIT Management Limited + 353 1 9058350

Kevin Nowlan

Tom Edwards-Moss

Murray Consultants

Doug Keatinge; +353-1-4980379/ +353-86-0374163; [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.