Trading Update

Hibernia REIT plc Trading Update

26 July 2016

Hibernia REIT plc ("Hibernia" or the "Company") today issues a trading update relating to the period from 1 April 2016 to date, in advance of its Annual General Meeting being held today at 11.30am.

Highlights

· Committed development schemes remain on track for scheduled completion dates

· Blocks 1, 2 & 5 Clanwilliam Court acquired, adding to longer term development pipeline as well as increasing contracted rent roll

· Remaining 30,200 sq. ft. in One Dockland Central let to ComReg at average rent of €50psf

· Formation of building management department

Developments and refurbishments

All committed schemes are progressing well and are on schedule.

At Harcourt Square, which is in Hibernia's longer term pipeline of potential developments, full planning for Phase 2 of the redevelopment, totalling 142,500 sq. ft. net internal area (NIA), was received in June. Hibernia now has full planning permission for up to 276,500 sq. ft. NIA of new offices and ancillary accommodation on the 1.9 acre site in Dublin's city centre.

Acquisitions and disposals

Hibernia acquired Blocks 1, 2 & 5 Clanwilliam Court, Dublin 2, for €51m (€544 per sq. ft.) in June. The 1970s buildings total 93,700 sq. ft. of office accommodation and 220 underground car parking spaces and are currently 76% occupied generating rent of €2.9m, a net initial yield of 5.0%. Together with Marine House, acquired in March 2016, Hibernia now owns four contiguous blocks totalling over 134,000 sq. ft. of office accommodation in a prime city centre location with potential for future refurbishment, extension or redevelopment.

Since 31 March 2016, eight units from the Dorville non-core portfolio have been sold or contracted to be sold for a total of €2.1m. Terms were agreed for the sales of a further three units for an aggregate sum of €1.4m. On average, sales prices achieved in the period were 20% ahead of the original acquisition values. Five units with a carrying value of €1.3m remain and are expected to be sold shortly.

Asset management

As announced separately today, Hibernia has let the remaining 30,200 sq. ft. of available space in the refurbished One Dockland Central to the Commission for Communications Regulation ("ComReg") on a 20 year lease, with an occupier-only break option after 11 years. ComReg will pay initial rent of €1.6m per annum (an average of €50 per sq. ft. for the office accommodation).

At the Chancery Building the fifth floor and mezzanine (5,200 sq. ft.) have been let to Analytic Partners on a 15 year lease with an initial rent of €0.2m per annum (an average of €37 per sq. ft.) and Hibernia is in discussions with potential occupiers regarding the vacant fourth floor (6,250 sq. ft.).

Corporate activity

Earlier this month Hibernia announced the formation of a building management department to take direct control of the management of its multi-let commercial properties: all such properties are expected to be transferred to direct management by mid-2017. The department will be headed by Dan Boyd, who has over 20 years' experience in property management and is joining from Burlington Real Estate.

Balance sheet

At 30 June 2016 and accounting for the purchase of Blocks 1, 2 & 5 Clanwilliam Court, Hibernia had net debt of €115m and cash and undrawn facilities of €307m.

Kevin Nowlan, Chief Executive Officer of Hibernia, said:

"We are pleased with our progress in the quarter - our committed development schemes remain on schedule and the purchase of Blocks 1, 2 & 5 Clanwilliam Court is an exciting addition to our longer term development pipeline and, together with the letting to ComReg announced today, increases our contracted rent roll to over €43m. The decision to bring building management in-house will enable us to maximise the quality of service for our occupiers.

"It is too early to see any discernible impact, positive or negative, on the occupational and investment markets in Dublin following the EU referendum result in the UK. We have a talented team, low gearing and an exciting development pipeline: we are confident that we will be able to capitalise on opportunities as they arise and we remain optimistic for the future."

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.