Interim Results November 2015 Disclaimer This presentation - - PowerPoint PPT Presentation

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Interim Results November 2015 Disclaimer This presentation - - PowerPoint PPT Presentation

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


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SLIDE 1

Interim Results

November 2015

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SLIDE 2

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

  • r 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

Disclaimer

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SLIDE 3

3

Market update Acquisitions and developments Portfolio management Conclusion and outlook

Highlights

Financial results

Agenda

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SLIDE 4

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

4

*Includes pre-let refurbishments

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SLIDE 5

In-place office portfolio 605k sq. ft. Committed developments* 239k sq. ft. (pre-let 123k sq. ft.) Near term developments 119k sq. ft. Longer term development pipeline** 279k sq. ft.

5

Portfolio overview

Portfolio by sector (value) In-place office and development portfolio (net lettable area)

Office IFSC 29% Office South Docks 15% Office Traditional Core 24% CBD Office Development / Refurb 15% Industrial 2% Residential 15%

Total: €739m

  • Portfolio of 21 properties (12 completed office properties)
  • Portfolio total passing rent of €26.6m1 and total contracted rent2 of €34.4m1
  • In-place office (excl. refurbishments and developments) average contracted rent of €32psf with an average ERV of €40psf3
  • In-place office WAULT to rent review of 2.2yrs4 and 4.0yrs to earlier of break or lease expiry
  • In-place office vacancy rate of 1%

Total: 1.2m sq. ft.

Notes to the office development portfolio: *Includes 50% interest in Windmill Lane and the c.55k sq. ft. of refurbished space in One Dockland Central **Includes incremental additional sq. ft. from Harcourt Square and the planned new offices at Gateway (c.115k sq. ft.). Further development potential at Gateway of c.130k sq. ft. of offices (1) Includes net income from residential (2) Includes pre-let refurbishments (3) All ERVs are CBRE assessments except for Harcourt Square which is an internal assessment (4) Earlier of review or expiry

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SLIDE 6

6

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

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SLIDE 7

7

Agenda

Market update Acquisitions and developments Portfolio management Conclusion and outlook Highlights

Financial results

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SLIDE 8

6 months to 30-Sep-15 6 months to 30-Sep-14 % change Property income 1 17,437 5,621 210% Revaluation gain 63,618 28,869 120% Net income 73,743 31,947 131% EPRA earnings 10,073 3,078 227% EPRA EPS 1.5c 0.8c 88% Dividend per share 0.7c 0.3c 133% 30-Sep-15 31-Mar-15 % change Gross assets 882,810 808,041 9% Investment properties 739,147 641,296 15% Net assets 825,025 753,134 10% Diluted EPRA NAV per share (cent) 122.1c 111.8c 9%

8

Financial highlights

(€ in thousands) (€ in thousands)

96.4c 104.7c 111.8c 122.1c 80c 85c 90c 95c 100c 105c 110c 115c 120c 125c Mar-14 Sep-14 Mar-15 Sep-15

EPRA NAV per share (cent)

+9% +7% +9% +27%

Valuation uplifts driving strong increases in NAV

(1) Includes one-off receipt of €4.9m (FBD surrender)

Balance sheet EPRA NAV per share progression Income statement

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SLIDE 9

9

EPRA NAV per share movement since 31 March 15

EPRA NAV per share movement since 31 Mar 15

111.8 5.5 3.9 1.5 (0.5) (0.1) 103 108 113 118 123 Mar-15 Investment properties reval. Development properties reval. EPRA EPS Dividends paid Other Sep-15 Sep-14 EPRA NAV cent per share Valuation uplift: 9.4 cent +17% +9% 122.1 104.7

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SLIDE 10

Net cash deployed €543m IPO €372m Hardwicke & Montague €43m P+OO €286m Committed capex €61m New RCF €400m Near term capex €49m Remaining investment capacity €362m €0m €200m €400m €600m €800m €1000m €1200m Uses of funds Sources of funds

10

Substantial financial capacity

New 5yr RCF provides substantial, low cost, flexible funding

€153m

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SLIDE 11

Observatory Live/Work €2m One Docklands Central €10m Cumberland House €13m Cumberland House €14m Windmill Lane €5m Windmill Lane €16m Windmill Lane €5m SJRQ €3m SJRQ €21m SJRQ €25m €0m €10m €20m €30m €40m €50m €60m Y/E March 2016 Y/E March 2017 Y/E March 2018 Committed Near Term

11

Forecast capital expenditure for committed and near term developments and refurbishments

Forecast capital expenditure by financial year

(1) €7.9m net of dilapidations received (2) 50% interest

Committed Committed €m Spent at Sep-15 €m Left to spend €m One Dockland Central €10m¹ €1m €9m Observatory Live/work €2m €0m €2m Windmill Lane(2) €26m €2m €24m Cumberland House €27m €1m €26m Total committed €65m €4m €61m 1-6 SJRQ €50m €1m €49m Total committed & near term €115m €5m €110m

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SLIDE 12

€1.3m €4.6m €0.4m €1.5m €2.8m €1.8m €5.7m €15m €20m €25m €30m €35m €40m €45m €50m Contracted in-place rent roll at 30 Sep 2015 Let To Let Near term development Proforma Committed refurb / development

Wyckham Point(1) One Dockland Central Cumberland House

€28.1m

One Dockland Central Windmill Lane(2) Observatory Live/Work Cumberland House 1-6 SJRQ

€46.2m +€18.1m +64%

Total contracted rent: €34.4m

12

Potential incremental rent roll from committed & near term developments/refurbishments

(1) Net rental income (2) Commercial units only/based on 50% interest (3)

  • Excl. basement offices

Based on CBRE estimated rental values, Sep 2015

Average office ERVs as per CBRE Sep 15:

  • One Dockland Central:

€45.00psf

  • Cumberland House:

€50.00psf

  • Windmill Lane:

€43.50psf

  • SJRQ3:

€47.50psf

  • Observatory Live/Work:

€32.50psf

Committed and near term developments/refurbishments expected to add c.€18.1m to rent roll by mid 2018 of which €6.3m is already let

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13

Key financial messages

  • Strong financial results

– Portfolio valuation and NAV per share driven by development and refurbishment activity and lettings – Earnings growth coming from full periods of ownership, acquisitions and lettings, plus €4.9m one-off from FBD surrender

  • Substantial flexible financial capacity in place

– New five year €400m RCF replacing existing €100m RCF (31% LTV if fully drawn at Sep 15 gross asset value) – Target through cycle LTV of 20-30%

  • Internalisation completed

– EPRA NAV per share at 30 September pro forma for internalization: 122.4c – Expected to be at least earnings neutral for next three years

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14

Market update

Acquisitions and developments Portfolio management Conclusion and outlook Highlights Financial results

Agenda

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SLIDE 15

2013 2014 2015F 2016F 2017F Government 1.4% 4.6% 2.8% 2.4% 2.0% Consumption (0.3%) 2.0% 3.5% 3.5% 3.1% Domestic Demand (1.5%) 5.2% 6.2% 4.2% 4.5% Investment (6.6%) 14.3% 15.4% 7.0% 9.1% Exports 2.5% 12.1% 11.9% 5.2% 4.2% Imports 0.0% 14.7% 12.3% 4.9% 4.6%

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Irish economic outlook

Ireland to be fastest growing euro area economy for 4yrs in a row… Economic summary

  • With forecast GDP growth of 6.6%1 for 2015, Ireland remains on

track to be Europe’s fastest growing economy this year

  • Domestic demand (esp. consumption) increasingly important

components of growth

  • Unemployment rate now <10.0% and expected to fall further: still

capacity in labour market

  • Growth not being driven by rapid expansion in credit supply

Source: CSO, Goodbody, European Commission Source: CSO

(8.0%) (6.0%) (4.0%) (2.0%)

  • 2.0%

4.0% 6.0% 8.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015F 2016F 2017F Ireland GDP Euro Area GDP (5%) (3%) (1%) 1% 3% 5% (2%) (1%)

  • 1%

2% Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Annual Quarterly Quarterly Annual

…and employment growth accelerates …as consumption and domestic demand play an increasing role…

Source: CSO, Goodbody (1) Goodbody Stockbrokers

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SLIDE 16

0.0 0.5 1.0 1.5 2.0 2.5 3.0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Millions Sq Ft Annual Dublin Office Take Up CBRE Q4 expectation 20 Year Average

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Rental market: Dublin office dynamics

Significant active demand for Dublin office space and we expect prime rents to continue to grow

4 10 10 7 3 1 9 8 8 3 2 1 1 5 10 15 20 < 5,000 sq ft 5,000 - 9,999 sq ft 10,000 - 19,999 sq ft 20,000 - 49,999 sq ft 50,000 - 99,999 sq ft 100,000 + sq ft No of Properties Dublin 1/3/7 Dublin 2/4 IFSC 1 2 3 4 5 10 15 20 25 30 35 40 45 50 Q4 04 Q4 05 Q4 06 Q4 07 Q4 08 Q4 09 Q4 10 Q4 11 Q4 12 Q4 13 Q4 14 Q3 15 Millions Sq Ft Millions Sq Ft Occupied Stock Vacant Stock Completions (RHS) 0% 5% 10% 15% 20% Dublin 1/3/7 Dublin 2/4 Dublin 6/8 IFSC City Centre Suburban South Suburbs

Overall Vacancy Rate Grade A Vacancy Rate

Principal CBD Grade A vacancies are in peripheral locations Dublin office take-up in the first three quarters of 2015 has reached 1.9m sq. ft. Overall Dublin CBD Grade A vacancy rate of 3.8%: Where there is vacancy in Dublin, it is mostly away from prime locations Vacancies reducing and limited new supply

Source: CBRE Source: CBRE Source: CBRE Source: CBRE Savills est. current active demand: 3.3m sq. ft. CBRE est. current active demand: 2.7m sq. ft.

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SLIDE 17

0.2m 1.2m 1.5m 2.3m 0.0m 0.5m 1.0m 1.5m 2.0m 2.5m 2015 2016 2017 2018 Potential sq. ft. Expected year of completion Under Construction Planning Granted Planning Applied Pre-Planning Pre-Let CBRE 10yr1 average Dublin take-up = 1.8m CBRE 10yr1 average Dublin CBD take-up = 1.3m sq. ft.

17

Expected Dublin office development and refurbishment supply

(1) CBRE data series 2005 to 2015 YTD

Hibernia currently expects c.5m sq. ft. of new office space to be delivered by end 2018: c.4m sq. ft. net of space removed

Source: Management/CBRE estimates

Estimated development/refurbishment pipeline

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Investment sourcing

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* As at 30 June 2015

NAMA Private Equity Funds Other

  • >€11bn of loans at cost still on

balance sheet* (c. 50% of which are in Dublin)

  • Targeting redemption of all senior

bonds before end of 2018 (i.e. €9bn to redeem before end 2018)

  • >€35bn invested in last 3 years
  • Private syndicates: looking for

liquidity

  • Forward funding opportunities:

Owners of prime office development sites may look for finance via forward funding arrangements

  • Loan acquisitions: Hibernia has built

a reputation for offering deal execution certainty and an ability to purchase debt and resolve potentially complex sale transactions

We continue to see attractive opportunities to add selectively to our portfolio

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SLIDE 19

19

Agenda

Market update

Acquisitions and developments

Portfolio management Conclusion and outlook Highlights Financial results

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  • Acquired off-market for €28m; NIY = 4.7%
  • Fully let 80 unit apartment complex:

― 22 one beds; 44 two beds; 14 three beds

  • Net annual rent of c.€1.4m with avg. 2 bed rent at

c.€1,550 per month

  • Adjacent to Dundrum Town Centre with easy access to

excellent transport links such as Luas and M50 motorway

Acquisition:

Dundrum View

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21

  • Completed ahead of schedule and on budget
  • All 213 units fully let by end of Sept 2015

producing net rent roll of €3.7m per annum

  • Average 2 bed let at c.€1,700 per month
  • Profit on cost of >30%
  • Yield on cost in excess of 6%
  • Unleveraged IRR of >25%

Completed development:

Block 3, Wyckham Point

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SLIDE 22

22

Summary of Hibernia near term developments and refurbishments

Sector NIA post completion (sq ft) Full purchase cost

  • Est. capex
  • Est. total cost

(incl. land) €psf ERV(1) Office ERV psf(1) Expected PC Date Refurbishment Cumberland House Office 112k €51m €27m €665psf €6.4m €50.00psf Q4 2016 One Dockland Central Office 73.5k(6) €47m(3) €10m(4) €740psf(3) €3.5m(3) €44.00psf(8) Q1 2016 Observatory Live/work SOBO Lofts Office 9.7k office 2k retail €2m €1.5m €280psf €0.4m €32.50psf Q1 2016 Development Windmill Lane(2) Office 60.5k office 3.3k retail 7.5 resi. Units €4m €26m €425psf(5) €2.8m(5) €43.50psf late 2017 1-6 SJRQ Office 119k office(7) 6.2k retail €18m €50m €550psf €5.7m €47.50psf mid 2018 Total 375k office 11.5k retail 7.5 units €122m €114.5m €18.8m

(1) Per CBRE valuation at 30 Sep 2015 (2) 50% interest (3) For entire One Dockland Central (4) €7.9m net of dilapidation charge received (5) Commercial only (6) 55k sq. ft. of 73.5k sq. ft. being refurbished plus all common areas

CONCEPT IMAGE CONCEPT IMAGE CONCEPT IMAGE CONCEPT IMAGE

(7) 9k sq. ft. in basement (8) €45.00psf on refurbished space i.e 56k sq. ft. and €41 on non-refurbished first floor of 16k sq. ft.

CONCEPT IMAGE

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23

  • Acquired vacant for €49m in March 2015

with existing NIA of 112k sq. ft.

  • Pre-Let 85k sq. ft. to Twitter in Sept 2015

at €50psf (€4.6m per annum)

  • Refurbishment of entire building at a

cost of €27m

  • Expected to be completed in Q4 2016
  • Substantial uplift in value already with

more to come

  • c.30k sq. ft. to let (top two floors)

Committed refurbishment:

Cumberland House

Concept image/subject to planning

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  • Expected completion in late 2017
  • Demolition completed and basement dug
  • Starwood Capital 50% JV partner
  • CBRE Sept 15 ERV of €43.50psf
  • Marketing campaign commenced at €55psf

Committed development:

Windmill Lane

Concept image

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25

  • Revised planning for a new and improved building

has now been conditionally approved

  • Demolition commenced
  • Expected completion by mid 2018
  • CBRE Sept 15 ERV of €47.50psf

Concept image

Near term development:

1-6 SJRQ

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Summary of longer term development pipeline

Name Sector Current NIA (sq. ft.) NIA post completion (sq. ft.) Full purchase cost Comments Gateway Logistics/Office 178k on 14.1 acres c.245k1sq. ft. €10m

  • Outline planning application for

new road configuration expected to be submitted shortly Harcourt Square Office 117k on 1.9 acres c.285k sq. ft. €72m

  • See slide 27

Total 295k on 16 acres c.530k sq. ft.1 €82m

(1) Planned new offices of c.115k sq. ft. plus potential to add a further c.130k sq. ft of offices

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SLIDE 27

27 Harcourt Square:

  • Acquired for €70m in February 2015
  • Fully let to the OPW and generating passing rent of €4.9m p.a.
  • The 1.9 acre site lies within 700m of St. Stephen’s Green and has the potential for significantly enhanced density of office

space of up to 300k sq. ft.

  • Phase 1 planning application successful and final grant of planning issued in early October 2015
  • Phase 2 planning application submitted in early November
  • The new development will significantly enhance the profile of Harcourt Street

Harcourt Square development

Concept image Concept image

Proposed Current

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SLIDE 28

28

Agenda

Market update Acquisitions and developments

Portfolio management

Conclusion and outlook Highlights Financial results

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% of portfolio Initial Equivalent Reversionary

  • 1. Dublin CBD Offices

Traditional Core €179m 24.2% 8.2% 8.0% 17.9% 3.6%² 5.1%² 5.3%² €7.5m IFSC €217m 29.3% 6.2% 6.2% 23.0% 3.4% 5.2% 5.4% €9.3m South Docks €114m 15.4% 5.9% 5.9% 39.3% 3.2% 5.2% 5.6% €3.8m Total Dublin CBD Offices €509m 68.9% 6.8% 6.8% 24.0% 3.4%² 5.2%² 5.5%² €20.7m

  • 2. Dublin CBD Office

Development/Refurbishment €109m 14.8% 26.2% 26.2% 43.0% – – – –

  • 3. Dublin Residential

€110m 14.8% 7.4% 3.9% 18.0% 4.7% 4.7% 4.7% €5.4m

  • 4. Industrial

€11m 1.5% 3.3% 3.3% 3.0% 4.7% 7.3% 7.8% €0.5m Total Investment Properties (incl. offices) €739m 100.0% 9.4% 8.7% 25.0% 3.7%³ 5.1%³ 5.3%³ €26.6m Passing rent (€m) Value as at Sep 15 (all assets) Yield on value (%) % uplift since acquisition (all assets)

  • incl. costs(1)

% uplift since Mar 15

  • incl. new acqusition

% uplift since Mar 15

  • excl. new acqusition

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Portfolio Summary

(1) Includes capex (2) excludes Harcourt Square as this is valued by CBRE on a residual/development appraisal basis; includes One Dockland Central, of which c.77% is currently under refurbishment and is therefore not income producing (3) excludes Harcourt Square and all Dublin CBD Office Development/Refurbishment

Valuation uplift supported by letting activity and progress on development assets

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SLIDE 30

Banking & capital markets 44% Government 25% Insurance & Reinsurance 10% TMT 3% Other 13% Professional services 5%

€22.2m

25% 13% 13% 9% 5% 5% 3% 3% 2% 2% 20% Remainder

€22.2m

In-place office portfolio statistics

30 Industry split of in-place tenants Top 10 tenants of in-place portfolio (by contracted rent)

(1) As per CBRE Sep 2015 (2) C.77% of One Dockland Central is being refurbished and is therefore not in-place office. Including 100% of 1 Dockland Central, the valuation at 30 Sep is €509m

  • In-place office portfolio – i.e portfolio excluding assets under development or refurbishment – has the following

characteristics: – Value1 at 30 Sep: €468m2 – Passing rent of €20.7m; contracted rent of €22.2m – Average rent of €32psf vs ERV1 of €40psf – Average 2.2yrs to earlier of lease expiry or rent review

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SLIDE 31

Asset management priorities Examples Preparing in-place assets for key lease events starting in 2017 (see next slide) Observatory Upgrade to entrance and reception of office space due to complete in Dec 15 Hanover Building Assessing plans for building improvement Resolving complex lease situations in in-place portfolio Guild House Agreed terms for early surrender by FBD for total consideration of €8.8m Gateway Lease re-gear to give Hibernia vacant possession at 12 months notice for redevelopment Letting remaining vacant space in in-place and development portfolio One Dockland Central c.30k sq. ft. of refurbished space being actively marketed ahead of completion in Q1 2016 Cumberland House c.30k sq. ft. to let post refurbishment completing during 2016 Completing sale of non-core assets Dorville portfolio See following pages

Asset management priorities

31

1 2 3 4

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SLIDE 32

€0m €1.0m €2.0m €3.0m €4.0m €5.0m €6.0m Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Contracted Rent Six months ended

Valuers' ERV* at 30 Sep 32

Schedule of rent reviews(1) for in-place office tenants

To earlier of rent review or lease expiry

(1) To earlier of rent review or lease expiry. Excludes various parking licenses, retail space in office building and Parkrite in the Forum *Harcourt Square ERV is conservative internal assessment excl. redevelopment. All other ERVs are CBRE

Weighted average period to rent review or lease expiry of 2.2 years

  • Avg. rent: €28psf

Current in-place office contracted rent: €22.2m

  • Avg. rent: €38psf
  • Avg. rent: €42psf
  • Avg. rent: €30psf
  • Avg. rent: €24psf
  • Avg. rent: €45psf
  • Avg. rent: €26psf
  • Avg. rent: €27psf
  • Avg. rent: €34psf
  • Avg. rent: €26psf

1

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SLIDE 33

Asset management: One Dockland Central and Guild House

33 One Dockland Central:

  • Lease surrender agreed for 55,000 sq. ft. (of a 72,000 sq. ft.

building)

  • Refurbishment works ongoing:

− Estimated cost of €10m (€7.9m net of dilaps) − Net lettable +2,200 sq. ft. − Works due to complete in Q1 2016

  • Terms agreed with HubSpot for a lease of c.27,500 sq. ft. at

€45psf/€1.3m for a 20 year term

  • Marketing remaining 29,700 sq. ft. at in excess of €45psf
  • Estimated profit on cost once fully let: c. 20%*

Guild House:

  • Early surrender of FBD’s leasehold interests for €8.8m:

sub-tenancies remain in place

  • All sub-leases expire by Q1 2017 except BNY Mellon which
  • ccupies the first floor (c. 16,000 sq. ft.) on a lease running to

March 2025

  • Optionality in asset management opportunities:

− Extensive refurbishment upon expiry of sub-leases in 2017 (similar to 1 Dockland Central)

  • r

− Agree new, longer leases with existing sub-tenants

* Assuming all refurbished space lets for €45psf

2 3

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SLIDE 34

Remaining non-core assets Units Carrying value Residential assets 19 4,559 Commercial assets 2 2,040 Total 21 6,599 Sale agreed or committed at period end Units Carrying value Price agreed Expected profit Residential assets 25 7,228 7,760 532 Total 25 7,228 7,760 532

34

Progress on sale of non-core assets

Progress on sale of non-core assets

Aiming to complete sale of majority of non-core assets by end of 2015

Sold or contracted at period end Units Carrying value Sales price Profit Residential assets 18 4,362 5,083 721 Commercial assets 1 310 300 (10) Total 19 4,672 5,383 711

(€ in thousands) (€ in thousands) (€ in thousands)

4

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SLIDE 35

35

Agenda

Market update Acquisitions and developments Portfolio management

Conclusion and outlook

Highlights Financial results

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SLIDE 36

36

 Portfolio delivering strong returns  Further to come from developments and asset management  Supportive economic backdrop, low cost funding in place and

substantial pipeline of acquisition opportunities Conclusion and outlook

Creating value through active management

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SLIDE 37

37

Appendix

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SLIDE 38

Location of portfolio

38

Croke Park Fairview Park River Liffey Herbert Park Kings Inns

  • St. Stephens

Green 9 8 7 6 2 12 13 14 4 5 11 10 15

Central Dublin portfolio(1)

1 Wyckham Point 2 New Century House 3 Gateway Site 4 Montague House 5 Hardwicke House 6 Chancery Building and Chancery Apartments 7 Hanover Building 8 Windmill Lane 9 Observatory 10 Guild House 11 Commerzbank House 12 The Forum 13 1-6 SJRQ 14 Cumberland House 15 Harcourt Square 16 Dundrum View

1 &16 3 (1) property assets > €5m in value as at 31 March 2015

Key: Office Residential Industrial Office development

M1 M50 M50 N3/M3 N2/M2 M50

Dublin

N81

Howth Clontarf Dublin Airport North Bull Island Portmarnock Blanchardstown Clondalkin Tallaght Blackrock Ballsbridge Rathfarnham Phibsborough Drumcondra Castleknock Sutton Northern Cross Beaumont Ballymun The Ward Northwest Business Park Glenageary Dundrum Palmerstown Kimmage

N11

Ballymount

N4/M4 N7/M7

2 8 7 6 9 13 12 14 4,5 & 15 10&11

Source: Google Maps, Visit Dublin, Jones Lang LaSalle

1 Wyckham Place 2 New Century House 3 Gateway Site 4 Montague House 5 Hardwicke House 6 Chancery Building and Chancery Apartments 7 Hanover Building 8 Windmill Lane 9 Observatory 10 Guild House 11 Commerzbank House 12 The Forum 13 1-6 SJRQ 14 Cumberland House 15 Harcourt Square

1 &16 3

Dublin Overview(1)

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30-Sep-15 31-Mar-15 Investment Properties(1) 739,147 641,296 Assets held for sale 13,827 18,499 Other non current assets 2,348 152 Cash and cash equivalents 114,753 139,048 Trade and other receivables 12,735 9,046 Gross assets 882,810 808,041 Current liabilities (57,785) (54,907) Net assets 825,025 753,134 Equity share capital 657,987 657,987 Retained earnings 165,132 91,388 Dividends paid (5,366) (2,013) Other reserves 7,272 5,772 Total equity 825,025 753,134 IFRS NAV per share (cents) 123.1 112.4 Diluted IFRS NAV per share (cents) 122.0 111.6 Diluted EPRA NAV per share (cents) 122.1 111.8

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Summary financial statements

Balance sheet highlights Summary income statement

6 mths to 30-Sep-15 6 mths to 30-Sep-14 Revenue 18,405 5,758 Direct property costs (968) (137) Property Income 17,437 5,621 IM base fee (3,373) (1,861) IM performance fee accrual (1,500)

  • Administrative expenses

(2,233) (717) Net finance income / (costs) (1,093) 35 Net rental profit 9,239 3,078 Revaluation/other gains: Investment properties 63,617 28,869 Other gains and losses (2) 887

  • Total revaluation/other gains:

64,504 28,869 Net income for the period 73,743 31,947 Diluted IFRS EPS (cents) 10.91 8.30 EPRA Earnings 10,073 3,078 Diluted EPRA EPS (cents) 1.50 0.80

(€ in thousands) (€ in thousands) (1)

  • Incl. 50% interest in Windmill Lane

(2) Profits arising on disposal of non-core properties and income earned on exercise of Windmill Lane option

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