Interim Results November 2015
Disclaimer This presentation (hereinafter "this document") has been prepared by Hibernia REIT plc (the "Company") for information purposes only. This document has been prepared in good faith but the information contained in it has not been independently verified and does not purport to be comprehensive. The Company is not undertaking any obligation to provide any additional information or to update this document or to correct any inaccuracies that become apparent. This document is neither a prospectus nor an offer nor an invitation to apply for securities. The information contained in this document is subject to material updating, completion, revision, amendment and verification. This document does not constitute or form a part of any offer for sale or solicitation of any offer to buy or subscribe for any securities. Any prospective investor must make its own investigation and assessments and consult with its own adviser concerning any evaluation of the Company and its prospects. No representation or warranty, express or implied, is given by or on behalf of the Company, its group companies, or any of their respective shareholders, directors, officers, employees, advisers, agents or any other persons as to the accuracy, completeness, fairness or sufficiency of the information, projections, forecasts or opinions contained in this presentation. In particular, the market data in this document has been sourced from third parties. Save in the case of fraud, no liability is accepted for any errors, omissions or inaccuracies in any of the information or opinions in this document. Certain information contained herein constitutes "forward-looking statements", which can be identified by the use of terms such as "may", "will", "should", "expect", "anticipate", "project", "estimate", "intend", "continue", "target" or "believe" (or the negatives thereof) or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or actual performance of the Company may differ materially from those reflected or contemplated in such forward-looking statements. No representation or warranty is made as to the achievement or reasonableness of, and no reliance should be placed on, such forward-looking statements. There is no guarantee that the Company will generate a particular rate of return. The Company has not been, and will not be, registered under the US Investment Company Act of 1940, as amended, and investors are not entitled to the benefit of that Act. This Presentation is available only to persons who are (1) both Qualified Institutional Buyers as defined in Rule 144A under the US Securities Act of 1933, as amended, as well as Qualified Purchasers within the meaning of section 2(a)(51) of the US Investment Company Act of 1940, as amended, or (2) outside the United States and not US persons as defined in Regulation S under the US Securities Act of 1933, as amended. 2
Agenda Highlights Financial results Market update Acquisitions and developments Portfolio management Conclusion and outlook 3
Highlights • Delivering NAV and net profit growth – EPRA NAV per share +9.2% to 122.1c – Net income of € 73.7m, including revaluation gains of € 63.6m • Significant letting activity – Over 120k sq. ft. of office lettings including major pre-lets to Twitter and HubSpot – Contracted rent roll now € 34.4m*, +52% on March 2015 • Good progress on development pipeline – Block 3, Wyckham Point completed ahead of schedule and on budget: now fully let – Windmill and SJRQ on track for end 2017 and mid-2018 completion – Refurbishment of Cumberland House commenced • New € 400m RCF agreed, providing low cost flexible funding • Broadening universe of potential investors – EPRA Index inclusion – Internalisation of management team *Includes pre-let refurbishments 4
Portfolio overview Portfolio by sector (value) In-place office and development portfolio (net lettable area) Residential Committed developments* 15% 239k sq. ft. (pre-let 123k sq. ft.) Industrial Office IFSC 2% 29% Near term developments CBD Office 119k sq. ft. In-place office portfolio Total: € 739m Total: 1.2m sq. ft. Development / Refurb 605k sq. ft. 15% Office South Docks Longer term development pipeline** Office Traditional Core 15% 279k sq. ft. 24% • Portfolio of 21 properties (12 completed office properties) Portfolio total passing rent of € 26.6m 1 and total contracted rent 2 of € 34.4m 1 • • In-place office (excl. refurbishments and developments) average contracted rent of € 32psf with an average ERV of € 40psf 3 In-place office WAULT to rent review of 2.2yrs 4 and 4.0yrs to earlier of break or lease expiry • • In-place office vacancy rate of 1% (1) Includes net income from residential Notes to the office development portfolio: (2) Includes pre-let refurbishments *Includes 50% interest in Windmill Lane and the c.55k sq. ft. of refurbished space in One Dockland (3) All ERVs are CBRE assessments except for Harcourt Square which is an internal assessment Central (4) Earlier of review or expiry **Includes incremental additional sq. ft. from Harcourt Square and the planned new offices at Gateway 5 (c.115k sq. ft.). Further development potential at Gateway of c.130k sq. ft. of offices
More to come • Delivering new office space early in the cycle – Windmill Lane, SJRQ, Cumberland House, One Dockland Central – Progress on planning at Harcourt Square and Gateway • Driving rents in in-place portfolio – Average contracted rents of in-place office portfolio of € 32psf, with average ERV of € 40psf – >300 residential units (fully let) with most tenants on annual leases – Asset improvement: e.g. light refurb at Cannon Place, new reception in Observatory • Further acquisitions – c. € 360m funding in place net of committed and near term investments – Significant pipeline of opportunities 6
Agenda Highlights Financial results Market update Acquisitions and developments Portfolio management Conclusion and outlook 7
Financial highlights Balance sheet EPRA NAV per share progression 125c ( € in thousands) 30-Sep-15 31-Mar-15 % change 122.1c Gross assets 882,810 808,041 9% 120c +9% Investment properties 739,147 641,296 15% +27% Net assets 825,025 753,134 10% 115c 111.8c Diluted EPRA NAV per share (cent) 122.1c 111.8c 9% +7% EPRA NAV per share (cent) 110c 104.7c Income statement 105c ( € in thousands) 6 months to 6 months to +9% 30-Sep-15 30-Sep-14 % change 100c Property income 1 17,437 5,621 210% 96.4c Revaluation gain 63,618 28,869 120% 95c Net income 73,743 31,947 131% EPRA earnings 10,073 3,078 227% 90c EPRA EPS 1.5c 0.8c 88% Dividend per share 0.7c 0.3c 133% 85c 80c Mar-14 Sep-14 Mar-15 Sep-15 Valuation uplifts driving strong increases in NAV (1) Includes one-off receipt of € 4.9m (FBD surrender) 8
EPRA NAV per share movement since 31 March 15 EPRA NAV per share movement since 31 Mar 15 1.5 123 Valuation uplift: 9.4 cent 122.1 (0.5) (0.1) 3.9 118 EPRA NAV cent per share +9% 5.5 +17% 113 111.8 108 104.7 103 Mar-15 Investment Development EPRA EPS Dividends paid Other Sep-15 Sep-14 properties reval. properties reval. 9
Substantial financial capacity IPO P+OO New RCF Sources of funds € 372m € 286m € 400m Hardwicke & Montague Committed capex Near term capex € 49m € 43m € 61m Remaining investment capacity € 362m Net cash deployed Uses of funds € 543m € 153m € 0m € 200m € 400m € 600m € 800m € 1000m € 1200m New 5yr RCF provides substantial, low cost, flexible funding 10
Forecast capital expenditure for committed and near term developments and refurbishments Forecast capital expenditure by financial year Committed Spent at Sep-15 Left to spend Committed €m €m €m One Dockland Central €10m¹ €1m €9m € 60m Observatory Live/work €2m €0m €2m Windmill Lane (2) €26m €2m €24m € 50m Cumberland House €27m €1m €26m Total committed €65m €4m €61m SJRQ 1-6 SJRQ €50m €1m €49m € 40m € 21m Total committed & near €115m €5m €110m term SJRQ € 30m € 3m Windmill Lane € 5m Windmill Lane € 16m € 20m Cumberland House SJRQ € 13m € 25m € 10m Cumberland House One Docklands Central € 14m € 10m Observatory Live/Work Windmill Lane € 2m € 5m € 0m Y/E March 2016 Y/E March 2017 Y/E March 2018 Committed Near Term (1) € 7.9m net of dilapidations received (2) 50% interest 11
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