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Interim Results November 2019 Disclaimer This presentation - - PowerPoint PPT Presentation

Interim Results November 2019 Disclaimer This presentation (hereinafter "this document") has been prepared by Hibernia REIT plc (Hibernia, the Company, Group, we or us) for information purposes only. This


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Interim Results

November 2019

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Hibernia REIT plc INTERIM RESULTS | NOV 2019 2

Disclaimer

This presentation (hereinafter "this document") has been prepared by Hibernia REIT plc (“Hibernia”, the “Company“, “Group”, “we” or “us”) 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. This document is neither a prospectus nor an offer nor an invitation to apply for securities. 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

  • pinions 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

  • r inaccuracies in any of the information or opinions in this document.

Certain information contained herein may constitute “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 negatives thereof) or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or actual performance of the Group 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 Group will generate a particular rate of return. Pictured on cover: Outline of windmill at 1WML

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Hibernia REIT plc INTERIM RESULTS | NOV 2019 3

Agenda

Highlights Financial results Market update Developments Portfolio management Conclusion and outlook

Pictured: Reception, Central Quay

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SLIDE 4

Hibernia REIT plc INTERIM RESULTS | NOV 2019 4

Results summary

6 months to Sep-19(1) 6 months to Sep-18 Portfolio value(2) +0.6% +3.9% Total property return (“TPR”)(3) 2.4% 5.9% TPR vs. MSCI Ireland Index(4)

  • 0.6pp

+1.6pp EPRA NAV per share +1.4% +4.5% EPRA earnings per share +55.6% +38.5% Total accounting return (“TAR”)(5) 2.5% 5.7%

(1) Not including the 1.5pp increase in stamp duty on commercial property which took effect in Oct-19 and would have reduced portfolio value by c.€22m if effective at end Sep-19 (2) Like-for-like change (incl. finance costs) and excluding assets acquired and disposed of during the period (3) TPR is calculated on an “all assets” basis as per MSCI. Prior period figure restated as this was previously calculated on an “all assets excluding transaction costs” basis as per expired IMA (4) MSCI/SCSI Ireland Quarterly Property All Assets Index (excl. Hibernia). Prior period figure restated as per expired IMA which used the IPD/SCSI Ireland Quarterly Property DPSI Index (ex. costs) (5) Calculated as EPRA NAV per share growth in period plus dividends per share paid in period

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Hibernia REIT plc INTERIM RESULTS | NOV 2019 5

Business highlights

  • 1. Growing income and reduced costs
  • Contracted rent €62.0m, +8% since Mar-19
  • Net rental income €28.6m, +7% vs Sep-18
  • EPRA EPS of 2.8c, +56% vs Sep-18
  • 2. Making progress with developments
  • 2 Cumberland place expanded +12% to 56k sq. ft.

– Due to complete Q3 2020

  • Provisional planning granted for 152k sq. ft. Clanwilliam

Court redevelopment, subject to appeal

  • 3. Recycling capital effectively
  • FY19 net sales proceeds of €60.3m reinvested in:

– Five acquisitions for €17.6m(1) – Development capex of €9.3m – €25m share buyback at an average price of €1.42 per share(2)

  • 4. Improving sustainability performance
  • Three star GRESB rating in 2019, score +17pp on prior year
  • Full-time Sustainability Manager joining in Jan-20
  • 5. Increasing dividend
  • 1.75c interim DPS declared, +17% on Sep-18

(1)

  • Incl. acquisition costs

(2) Buyback programme completed on 11 November 2019

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Hibernia REIT plc INTERIM RESULTS | NOV 2019

Looking ahead

  • 1. Occupier demand remains strong
  • FDI job creation near record levels
  • Some smaller tenants have deferred lettings
  • Supply still limited in office and residential sectors
  • 2. Potential to grow income materially in near term
  • Un-let space with ERV of €7.8m (offices: €7.4m)
  • 2 Cumberland to deliver in Q3 2020: ERV of €3.2m
  • 3. Exciting development pipeline
  • Office development pipeline can deliver 538k sq. ft.(1) of

new Grade A space with ERV >€29m(1)

  • 151.3 acres of land with potential for mixed-use

development in future

  • 4. Accommodating changing tenant demand
  • Will create “clusters” at Clanwilliam and Harcourt

developments

  • Offering shorter leases in some buildings (e.g. 2WML)
  • “Managed” offices (e.g. Observatory)
  • 5. Hibernia still well positioned
  • Impact of Budget 2020 tax changes on investment market

unclear as yet

  • 15.6% LTV and €174m of cash and undrawn facilities
  • Clear strategy and experienced team

(1) Incremental new Grade A office space is 260k sq. ft. with incremental ERV of €18m 6

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Hibernia REIT plc INTERIM RESULTS | NOV 2019 7

Agenda

Highlights Financial results Market update Developments Portfolio management Conclusion and outlook

Pictured: Atrium, 1SJRQ

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Hibernia REIT plc

Income statement Sep-19 (pro forma stamp duty)(1) Sep-19 Sep-18 Change(2) Net rental income €28.6m €26.6m +7.3% Revaluation and disposal gain (€15.9m) €6.3m €51.1m (87.7)% Profit before tax €3.3m €25.5m €64.0m (60.1)% EPRA earnings €19.3m €12.8m +50.1% EPRA EPS 2.8c 1.8c +55.6% Interim dividend per share 1.75c 1.5c +16.7% Balance sheet Sep-19 (pro forma stamp duty)(1) Sep-19 Mar-19 Change(2) Portfolio value €1,401.5m €1,423.7m €1,395.4m +0.6%(3) Net debt €221.5m €217.1m +2.0% Loan to value 15.8% 15.6% 15.6%

  • Net assets

€1,189.3m €1,211.6m €1,218.5m (0.6)% EPRA NAV per share 172.4c 175.7c 173.3c +1.4%

INTERIM RESULTS | NOV 2019 8

Financial highlights

(1) Assuming 1.5pp increase in stamp duty which was enacted in early Oct-19 was effective at end Sep-19 (2) Excluding impact of stamp duty increase (3) Like-for-like change (incl. finance costs & entire of 1WML asset)

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Hibernia REIT plc INTERIM RESULTS | NOV 2019 9

173.3c 175.7c 172.4c 2.8c (2.0c) 0.7c 170 171 172 173 174 175 176 177 178 Mar-19 Investment properties reval. Development properties reval. EPRA earnings Dividends paid Share buyback Sep-19

  • Est. stamp duty

impact Sep-19 (pro forma stamp duty) EPRA NAV per share (c) (3.3c)

EPRA NAV per share movement since 31 March 2019

Net valuation uplift: 0.9c Like-for-like “in-place” office valuation:+1.4%(2) (c.85% ERV impact) +1.4%

  • 1.8%

1SJRQ

0.1c 0.8c(1)

  • Trad. core

Other 2 Cumberland

(1) Comprises of South Docks +1.6c, Traditional Core -0.7c, IFSC 0c, Resi 0.1c, Other -0.2c (2) Represents c.€14m of the net property valuation uplift in the period. Excl. Clanwilliam Court, Marine House & Harcourt Square which are valued on a residual basis, after current leases expire

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Hibernia REIT plc INTERIM RESULTS | NOV 2019 10

EPRA earnings movement versus period ended 30 Sep 2018

€12.8m €19.3m €2.2m €1.3m (€1.9m) €6.2m (€1.1m) (€0.2m) €10m €12m €14m €16m €18m €20m €22m Sep-18 Developments completed in prior year Leasing activity Disposals & acquisitions IMA savings Operating costs Finance costs (net) Sep-19 EPRA earnings +50% 1SJRQ €2.2m Disposals (€2.1m) Acquisitions €0.2m New lettings €1.4m(1) Rent reviews €1.1m(2) Lease terminations (€1.2m) Direct property costs €0.3m Admin costs (€1.4m)

(3)

(1) Largely attributable to lettings in 1WML (2) Includes income from one outstanding rent review yet to be settled and settled rent reviews in period (3) The Investment Management Agreement (“IMA”) expired in November 2018

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Hibernia REIT plc

53m 155m 203m 217m 222m 369m 289m 197m 178m 174m €422m €444m €400m €395m €395m 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% €0m €100m €200m €300m €400m €500m FY16 FY17 FY18 FY19 H1'20 LTV Net debt Net Debt Undrawn Capacity (gross) LTV

Debt now fully unsecured

Through-cycle LTV target remains 20-30%

INTERIM RESULTS | NOV 2019 (1) PP notes are fixed rate (2) €100m nominal of cap and swaption instruments expired in Nov-19: had they expired in Sep-19 83% of the Group’s interest rate risk on its debt would have been fixed or hedged (3) Net of committed expenditure (4) Cash basis 11

Financial capacity and capital allocation

Net debt and LTV progression Capital allocation(4)

(10m) (35m) (65m) (35m) 19m 6m 37m 53m 46m 45m 11m

23m

9m 136m 85m 39m 40m 17m (€75m) (€50m) (€25m) €0m €25m €50m €75m €100m €125m €150m €175m FY16 FY17 FY18 FY19 H1'20 H2'20 FY21 Capital deployed Asset sales Return of capital Committed capex Acquisition spend Net spend Forecast Actual

Debt statistics Sep-18 Mar-19 Sep-19 % unsecured 0% 100% 100% % fixed/hedged 115% 128%(1) 124%(1)(2) Weighted average debt maturity 2.2 years 5.4 years 4.8 years Cash and undrawn facilities(3) €150m €143m €133m Current facilities Maturity Cost €320m RCF Dec-23 2.00% margin €37.5m PP note Jan-26 2.36% coupon €37.5m PP note Jan-29 2.69% coupon

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Hibernia REIT plc INTERIM RESULTS | NOV 2019 12

Consistent growth in distributable income

€4.9m €12.5m €16.7m €21.9m €26.6m €28.6m €12.8m €22.9m €23.8m €26.7m €0m €10m €20m €30m €40m €50m €60m FY16 FY17 FY18 FY19 H1'20 Net rental income Surrender Premium H1 H2 0.7 0.75 1.1 1.5 1.75 0.8 1.5 1.9 2.0 EPRA EPS 2.8c 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 FY16 FY17 FY18 FY19 FY20 Per share (c) Interim DPS Final DPS EPRA EPS

EPRA EPS and DPS growth Net rental income (NRI) growth

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Hibernia REIT plc

Potential incremental rent roll from portfolio(1)

(1) Excl. income potential of possible future mixed-use development schemes (2) Excl. Iconic Offices arrangement in Brickhouse (Clanwilliam Court, Block 1). Incl. net residential rent: chart assumes no uplift to this (3) Based on C&W ERVs @ Sep-19 (4) Difference in summation of total is due to rounding (5) Capex based on current build cost incl. contingency but excl. effect of any future construction cost inflation €62.0m(2) €74.2m(2,4) €4.4m €3.2m €30m €40m €50m €60m €70m €80m €90m €100m

Contracted in-place rent at 31 Mar 19 Movement Contracted in-place rent at 30 Sep 19 Vacant assets Reversion Unlet committed schemes Near term portfolio Rent loss from developing pipeline

  • ffice schemes

ERV of pipeline

  • ffice schemes

Potential rent roll

  • incl. office schemes

Rent €57.6m(2)

Significant potential to grow rent roll in near term and looking further ahead

Rent Reviews €2.7m Lettings €2.3m Acquisitions €0.5m Expiries (€1.1m) Under review: €0.5m(3) €1.1m(3) 2WML €2.8m Forum €2.4m Central Quay €1.5m Remainder €1.1m €7.8m(3) 2 Cumberland Place(3) +€12.2m +20% (€10.9m)(2) €29.2m(3) +€18.3m +25% Marine House Clanwilliam Court Harcourt Square Clanwilliam Court Harcourt Square Marine House INTERIM RESULTS | NOV 2019 13

Delivered Current portfolio and committed schemes (estimated capex of €32m to complete Office development pipeline (estimated capex of €270m(5) to complete)

1 2 3

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Hibernia REIT plc

Sensitivity of development profits to come from committed/completed schemes(4) Yield 5.00% 4.80% 4.50% 4.25% 4.00%

  • Avg. ERV

€50.00psf (€5m) €0m €6m €13m €20m €52.50psf €0m €4m €11m €18m €26m €55.00psf €5m €9m €16m €23m €31m €56.57psf €7m €12m €20m €27m €35m €57.50psf €9m €14m €22m €29m €37m €60.00psf €14m €19m €27m €34m €43m €62.50psf €18m €23m €32m €40m €49m

INTERIM RESULTS | NOV 2019

Potential gains to come from committed/completed schemes(1)

Scheme Area post completion (sq. ft.) Purchase price (incl. costs) (€m)

  • Est. total

capex (€m) Total cost (€m) Capex to spend at Sep-19 (€m) ERV(2) €m(3) Office (to let) €psf 2 Cumberland Place Office: Retail: 56k 1k €0m €35m €35m €25m €3.2m €56.20 2WML Office: Gym: 60k 12k €21m €22m €43m €2m €3.7m €57.00 Total Office: Other: 116k 13k €21m €57m €78m €27m €6.9m €56.57 Profit left to come based on valuer’s current yields/ERVs

14 (1) Assuming valuer’s estimates of GDV at 30 Sep 19 (2) Per valuer’s ERV at Sep 19 average (3) Total ERV for property, remaining vacant space in 2WML has ERV at Sep-19 of €2.8m (4) At 30 Sep 19 C&W, the independent valuer, had an average estimated rental value for the unlet office space (56k sq. ft.) in 2 Cumberland Place and 2WML (48k sq. ft.) of €56.57psf and was assuming an average yield of 4.80% upon completion: based on these assumptions it expects a further c.€12m of development profit (ex. finance costs) to be realised through the completion and letting of the unlet space

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Hibernia REIT plc INTERIM RESULTS | NOV 2019 15

Key financial messages

Strong earnings growth and more to come

  • EPRA EPS +56%, interim DPS +17%
  • €11m ERV of unlet office space incl. 2 Cumberland scheme

Still significant value to unlock within the portfolio

  • Near term: 2 Cumberland and 2WML
  • Longer term: 538k sq. ft. of office projects, 151.3 acres with mixed use potential

Tax changes

  • Direct: stamp duty increase on commercial property reduces value of portfolio by c.€22m and EPRA NAVPS by 3.3c (1.8%)
  • Indirect: impact of tax changes on wider market still unclear

Retain capital discipline and low leverage

  • Reinvested majority of net sales proceeds from last year
  • €25m share buyback completed with average purchase price of €1.42(1) per share
  • LTV of 15.6% with €133m of available undrawn facilities(2)

Looking ahead

  • Growing earnings a high priority
  • Valuation increases likely to be driven by development schemes and will be “lumpier”
  • Well positioned to capitalise on any opportunities

(1) Buyback programme completed on 11 November 2019 (2) Net of committed expenditure

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Hibernia REIT plc INTERIM RESULTS | NOV 2019 16

Agenda

Highlights Financial results Market update Developments Portfolio management Conclusion and outlook

Pictured: Retained tramyard gate & living wall, 1SJRQ

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Hibernia REIT plc INTERIM RESULTS | NOV 2019 17

Economic outlook

…as do medium-term expectations for growth in Dublin office employment

297 453 493 100 200 300 400 500 600 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(f) 2020(f) 2021(f) 2022(f) 2023(f)

(‘000s)

Source: Oxford Economics/CBRE Source: CSO/Goodbody *excl. R&D and aircraft leasing 2015 2016 2017 2018 2019f 2020f Consumption 3.6% 4.0% 1.6% 3.0% 2.9% 3.0% Investment 50.8% 51.7% (31.0)% 9.8% (28.1)% 3.5% Core investment* 8.7% 11.2% 6.2% 14.6% 6.3% 4.3% Government 1.4% 3.5% 3.9% 6.4% 2.6% 2.5% Domestic demand 15.9% 20.6% (12.4)% 5.8% (10.6)% 3.1% Core domestic demand* 4.0% 5.1% 2.9% 5.7% 3.6% 3.2% GDP 25.1% 5.0% 7.2% 6.7% 4.0% 2.8%

Irish economy continues to be one of the fastest growing in the EU27…

Source: Bloomberg *Composite Purchasing Managers Index (PMI)

45 50 55 60 65 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19 Sep-19 UK EU US IRE

PMI = 50 = no change on previous month

…but uncertainty has impacted sentiment and growth expectations globally

Source: Goodbody/IDA

Despite this, FDI job creation in Ireland remains strong…

2,000 4,000 6,000 8,000 10,000 12,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Cumulative No. of job announcements 2012 2013 2014 2015 2016 2017 2018 2019 2019 (YTD)

+9%

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Hibernia REIT plc INTERIM RESULTS | NOV 2019 18

Dublin office rental market

Source: Knight Frank @ 30 Sep 19

Strong net absorption underpinning take-up Majority of vacancy remains in suburbs

0m 1m 2m 3m 4m 5m 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 To Q3 2019 Area (sq. ft.) Net Take-Up Gross Take-Up 10 Yr. Avg. Gross Take-Up 5.0% 6.9% 9.5% 6.8% 6.0% 9.1% 9.5% 7.7% 2 4 6 8 10 City centre Fringe Suburbs Overall Dublin Vacancy rate (%) Overall vacancy rate Grade A vacancy rate

Tenant demand remains strong though smaller tenants have taken longer to lease space

Source: Knight Frank @ 30 Sep 19 Source: Knight Frank @ 30 Sep 19

2019 expected to be another year of strong take-up… …but evidence of a slowdown in take-up of space <20k sq. ft.

3.6m 3.9m 2.1m 0.0m 0.5m 1.0m 1.5m 2.0m 2.5m 3.0m 3.5m 4.0m 4.5m 2017 2018 2019 Area (sq. ft.) Q1 Q2 Q3 Q4

Q1 to Q3 Q1 to Q3 Q1 to Q3 Q1 to Q3 Q1 to Q3 Q1 to Q3

0.0m 0.2m 0.4m 0.6m 0.8m 1.0m 1.2m 2014 2015 2016 2017 2018 2019 Area (sq. ft.) Take-up (sq. ft.) 5yr average (sq. ft.)

  • Approx. 1m to 1.6m sq. ft.

lettings in discussion at Q3 2019

  • Active demand in Dublin

at 4.1m sq. ft. (4.2m sq. ft. at Mar-19)

Source: Knight Frank @ 30 Sep 19

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Hibernia REIT plc

# Tenant Sector Take-up % city centre 1 TMT 430k 100% 2 State 256k 18% 3 State 201k 100% 4 TMT 174k 0% 5 TMT 99k 100% 6 Other 90k 0% 7 TMT 68k 0% 8 Healthcare 58k 0% 9 Serviced Offices 49k 100% 10 Finance 25k 0% Total 1,450k 63%

Serviced office / co-working operators currently account for c. 3.4% of Dublin city centre stock***

INTERIM RESULTS | NOV 2019 19

Dublin office rental market II

Serviced office and co-working operators in Dublin Top 10 Dublin takers of space in 9mths to Sep-19

Source: Hibernia & Knight Frank @ 30 Sep 19 * smaller operators with <10k sq. ft. ** includes approx. 100k of potential lettings “under discussion” at Q3 2019 *** modern stock in CBD only (i.e. excl. Georgian etc)

  • Accounted for 69% of the total

take-up in 9mths to Sep-19

  • Strong expansion: 60% net to gross

Source: Knight Frank @ 30 Sep 19

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 0k 100k 200k 300k 400k 500k 600k WeWork Iconic Offices IWG Pembroke Hall The Guinness Enterprise Centre Glandore The Digital Hub DCU Alpha Dogpatch Labs DCU Invent Huckletree Us & Co Media Cube Dospace Office Suites Other* % of City Centre Stock Area (sq. ft.)

  • sq. ft.** (LHS)

% of city centre stock*** (RHS)

  • In 9mths to Sep-19, serviced office/co-working

accounted for 3.8% of gross take-up

  • Serviced office/co-working operators occupy
  • approx. 3.4%** of Dublin CBD stock***
  • For reference, co-working operators’ share of
  • ffice stock in some other major cities is: London

(6.0%), Paris (3.0%), New York (3.7%)

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Hibernia REIT plc INTERIM RESULTS | NOV 2019 20

Expected Dublin office development supply

Dublin CBD office development pipeline (Total Dublin CBD office market 22m sq. ft.) Total Dublin office development pipeline incl. suburbs (Total Dublin office market 43m sq. ft.)

Source: Knight Frank/Hibernia

Some delays occurring but overall Dublin office supply picture remains similar to May 2019

1.1m 1.5m 2.2m 2.5m 1.5m 2.3m 2.1m 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2016 2017 2018 2019 2020 2021 2022 Potential sq. ft. (m) Forecast Actual Expected year of completion Knight Frank 2018 take-up: 3.9m sq. ft. Knight Frank 10yr avg. take-up: 2.3m sq. ft. 1.0m 0.9m 1.7m 1.6m 0.8m 1.7m 1.1m 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2016 2017 2018 2019 2020 2021 2022 Potential sq. ft. (m) Forecast Actual Expected year of completion Knight Frank 2018 CBD take-up: 2.8m sq. ft. Knight Frank 10yr

  • avg. CBD take-

up: 1.3m sq. ft. Completed Under construction Probability weighted pipeline Pre-let/let All potential schemes

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Hibernia REIT plc # Property Location Buyer Buyer Nationality Seller Purchase price (€m)

  • Cap. value (€psf)

1 5 Hanover Quay Dublin 2 Union Investment TIO €197.0m €1,233 2 Nova Atria Dublin 18 Mapletree Investments Blackstone €165.0m €465 3 Charlemont Exchange Dublin 2 Vestas Investment Management Marlet €144.0m €1,171 4 Citywest Portfolio Dublin 24 Henley Bartra Davy Hickey Property Group & Private Vendor €105.0m n/a 5 The One Building Dublin 2 BNP REIM Jones Investments €49.5m €1,100 6 77 Sir John Rogerson's Quay Dublin 2 Patrizia Hibernia REIT €35.5m €1,040 7 51-54 Pearse Street/Magennis Place Dublin 2 IPUT Green Liffey Ltd €27.2m €635 8 The Lennox Building Dublin 2 Swiss Life Oakmount €27.0m €806 9 Ballast House Dublin 2 Union Investment Zetland €26.9m €951 10 23 Shelbourne Road Dublin 4 U+I Friends First €25.3m €976 €802.4m INTERIM RESULTS | NOV 2019 21

Dublin investment market

Yield progression in Dublin property sectors Robust Dublin investment demand(1) Top 10 office investment transactions (9mths to Sep-19)

* Sep-19 vs Sep-18 Source: (1) Knight Frank (2) Cushman & Wakefield, mid of range (3) CBRE Source: Knight Frank (1) As at Sep 19 Change yoy* Sep-18 Mar-19 Sep-19 bps % Office(1) Prime 4.00% 4.00% 4.00% 0bps

  • Second. asset; prime location

4.75% 4.75% 4.75% 0bps

  • Second. asset; second. location

5.50% 5.50% 5.25%

  • 25bps

4.8% Residential(2) Prime (% net) 4.20% 4.05% 4.05%

  • 15bps

3.7% Industrial(3) Prime 5.50% 5.10% 5.10%

  • 40bps

7.8% Sector Investment demand (€bn) Office €3.0bn Private Rental Sector (residential) €4.0bn Retail €0.5bn Industrial <€0.5bn Total €8.0bn

Investment market at 30 September 2019 in robust health: impact of tax changes per recent Budget as yet unclear

Source: Knight Frank @ Sep 19

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Hibernia REIT plc INTERIM RESULTS | NOV 2019 22

Agenda

Highlights Financial results Market update Developments Portfolio management Conclusion and outlook

Pictured: bike racks, basement 1WML/2WML

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Hibernia REIT plc INTERIM RESULTS | NOV 2019 23

Committed development

2 Cumberland Place, D2

  • Scheme now expanded to 56k sq. ft. of new

Grade A offices (+12%) due to additional floor

  • Total office space at Cumberland Place post-

completion will be c.190k sq. ft.

  • Capex budget €35m
  • Completion now expected in Q3 2020

Pictured: 2 Cumberland Place under construction

Sector Total area post completion (sq. ft.) Full purchase price

  • Est. capex
  • Est. total cost (incl.

land) €psf ERV(1) Office ERV psf(1) PC date Office 56k office 1k retail/café €0m €35m €621psf(2) €3.2m €56.20psf

  • Q3 2020 completion expected

(1) As per C&W @ Sep 19 (2) Office demise only

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Hibernia REIT plc INTERIM RESULTS | NOV 2019 24 Sector Current area (sq. ft.) Area post completion (sq. ft.) Full purchase price(1) Comments Office Marine House Office 41k 49k €29m

  • Planning granted for 49k sq. ft. refurbishment/extension
  • Lower ground floor planning application may add approx. 1.5k sq. ft.
  • Vacant possession expected during 2020

Blocks 1, 2, & 5 Clanwilliam Court Office 93k 141k office 11k ancillary €55m

  • Redevelopment opportunity post 2021
  • Potential to add significantly to existing NIA across all three blocks

and create an office cluster similar to Windmill Quarter (with Marine)

  • Provisional planning received for 152k sq. ft. redevelopment - subject to

appeal Harcourt Square Office 122k 307k office 2k retail €75m

  • Leased to OPW until Dec-22
  • Site offers potential to create cluster of office buildings with shared facilities
  • r a major HQ
  • Planning granted for 309k sq. ft.
  • Detailed building assessment underway by development team

One Earlsfort Terrace Office 22k 28k €20m

  • Current planning permission for two extra floors (6k sq. ft.), expiring Jul-21
  • Potential for redevelopment as part of wider Earlsfort Centre scheme

Total 278k 538k €179m

Development pipeline: office

(1) Including transaction costs and capex spent to date

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SLIDE 25

Hibernia REIT plc INTERIM RESULTS | NOV 2019 25

Development pipeline

Pictured: CGI of development schemes at Clanwilliam Court and Marine House (at far right of image)

Clanwilliam Quarter, D2

  • Planning granted for refurbishment and

extension of Marine House to 49k sq.ft.

  • Provisional planning received for

redevelopment of Clanwilliam Court to deliver 152k sq. ft. - subject to appeal

  • Together Clanwilliam Court and Marine

House can form another office cluster like Windmill Quarter

slide-26
SLIDE 26

Hibernia REIT plc INTERIM RESULTS | NOV 2019 26

Development pipeline

Harcourt Square, D2

  • Planning granted for 309k office

development scheme

  • Strategic location close to St. Stephen’s

Green

  • OPW lease expires in Dec-22
  • Potential to create another office cluster

like Windmill Quarter

  • Scale of project means a pre-let

substantially in advance of project completion may be possible

Hibernia REIT plc Pictured: CGI of development scheme at Harcourt Square

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SLIDE 27

Hibernia REIT plc INTERIM RESULTS | NOV 2019 27

Development pipeline: mixed-use

(1) Including transaction costs and capex spent to date (2) Initial consideration Current area (sq. ft.) Area post completion (sq. ft.) Full purchase price(1) Comments Mixed-use Newlands (Gateway) 143.7 acres N/A €48m(2)

  • Strategic transport location
  • Potential for future mixed-use redevelopment subject to rezoning

129 Slaney Road 62k on 3.8 acres N/A €5m

  • Strategic transport location
  • Potential for future mixed-use development subject to rezoning

Malahide Road 66k warehouse 17k ancillary office

  • n 3.8 acres

N/A €8m

  • Potential for future mixed-use development subject to rezoning

Total mixed-use 151.3 acres N/A €61m

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SLIDE 28

Hibernia REIT plc INTERIM RESULTS | NOV 2019 28

Agenda

Highlights Financial results Market update Developments Portfolio management Conclusion and outlook

Pictured: 2WML

slide-29
SLIDE 29

Hibernia REIT plc INTERIM RESULTS | NOV 2019 29

Portfolio summary

(1) Yields on unsmoothed values and excluding the adjustment for South Dock House and 1WML

  • wner-occupied space

(2) Harcourt Square, Clanwilliam Court & Marine House yields are calculated as the passing rent

  • ver the total value (after costs) which includes residual land value. Excludes Iconic Offices

income at Clanwilliam Court (3) Excludes the value of space occupied by Hibernia in South Dock House and to be occupied in 1WML (4) HubSpot on rent free at Sep-19: Contracted rent €6.8m per annum (5) 2 Cumberland Place (6) Includes 1WML residential element (Hanover Mills) (7) Net yields assuming 80% net-to-gross and purchaser costs as per C&W @ Sep-19 (8) Current rental value assumed as ERV as these assets are valued on a price per acre and rate psf basis except for Slaney Road which is valued on an income basis (9)

  • Excl. all CBD office developments

(10) Residential rent on a net basis per Hibernia cost (11) Net ERV assuming 80% net to gross (as per valuer assumptions) (12) To reconcile with “Total potential rent roll” on slide 13 which does not show any potential reversion from occupied residential or industrial/land assets: Therefore, €74.8m total investment properties ERV less €0.8m residential reversion from occupied properties (€7.3m

  • €6.1m - €0.4m (vacant Cannon Place) = €0.8m) plus €0.2m (€1.5m - €1.6m – €0.1m (vacant

industrial) = -€0.2m i.e. “negative reversion”) = €74.8m - €0.8m + €0.2m = €74.2m (13) Note: differences in summation of totals in the above table are due to rounding

Value as at Sep-19 (all assets) % of portfolio Yield on value %(1) Passing rent (€m) Contracted rent (€m) ERV (€m) Initial Equivalent Reversionary

  • 1. Dublin CBD Offices

Traditional Core €441m 31% 4.9%(2) 5.0%(2) 5.0%(2) €23.3m €23.3m €24.1m IFSC €206m 14% 3.7% 4.7% 4.8% €8.3m €8.3m €11.2m South Docks €540m(3) 38% 2.3% 4.5% 4.6% €14.4m(4) €22.8m €27.5m Total Dublin CBD Offices €1,187m 83% 3.5%(2) 4.7%(2) 4.8%(2) €46.0m €54.3m €62.8m

  • 2. Dublin CBD Office Development(5)

€22m 2%

  • €3.2m
  • 3. Dublin Residential(6)

€155m 11% 3.6%(7) 3.9%(7) 4.5%(7) €6.1m(10) €6.1m(10) €7.3m(11)

  • 4. Industrial/Land

€60m 4% 2.3%(8) 2.4%(8) 2.3%(8) €1.5m €1.6m €1.5m Total Investment Properties (incl. offices) €1,424m 100% 3.5%(2,7,8,9) 4.5%(2,7,8,9) 4.6%(2,7,8,9) €53.5m(10) €62.0m €74.8m(12)

slide-30
SLIDE 30

Hibernia REIT plc INTERIM RESULTS | NOV 2019 30

Portfolio performance since March 2019

(1) Including acquisition costs (2) Excludes the value of space occupied by Hibernia in South Dock House (3) During the period, fit out commenced on the space in 1WML which will become Hibernia’s head office and it is therefore recognised as owner occupied property in the financial statements. The space currently occupied by the Group in South Dock House (“SDH”) has been leased to a tenant from from late 2019 (signed Sep-19). Upon Hibernia’s head office relocation this space (in SDH) will be transferred to investment property. These transfers are recognised at fair value on the date of transfer. For the purpose of the above table, the transfer is a deemed disposal and the subsequent transfer of SDH to investment property will be a deemed purchase for the year ending Mar-20 (4) Note: differences in summation of totals in the above table are due to rounding Value (all assets) Capex Acquisitions(1) Disposals H1 Reval Transfers Value (all assets) LFL change (€m) LFL change (%) Mar-19 Sep-19 Sep-19 (pro forma stamp duty)

  • 1. Dublin CBD Offices

Traditional Core €444m €1m €1m

  • (€5m)
  • €441m

€430m (€5m) (1.2%) IFSC €207m

  • €206m

€203m

  • South Docks

€522m(2) €4m €7m (€5m)(3) €11m

  • €540m(3)

€533m(3) €12m(3) 2.3%(3) Total Dublin CBD Offices €1,173m €5m €8m (€5m) €6m

  • €1,187m(3)

€1,166m(3) €7m(3) 0.6%(3)

  • 2. Dublin CBD Office Development

€16m €5m

  • €1m
  • €22m

€21m €1m 4.5%

  • 3. Dublin Residential

€153m

  • €1m
  • €1m
  • €155m

€155m €1m 0.5%

  • 4. Industrial/Land

€53m

  • €9m
  • (€2m)
  • €60m

€60m

  • 0.1%

Total Investment Properties (incl. offices) €1,395m €10m €18m (€5m) €6m

  • €1,424m(3)

€1,402m(3) €9m(3) 0.6%(3)

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SLIDE 31

Hibernia REIT plc INTERIM RESULTS | NOV 2019 31

Office leases agreed and rent reviews settled

Tenant Building Area (sq. ft.) Lease type Contracted rent €m Contracted rent vs. Mar-19 ERV % of Group rent To break To expiry Notes 2WML 13k New lease €0.8m +20% 1% 3yrs 5yrs

  • Sep-19 commencement

Observatory 8k New licence €0.6m(1) N/A 1% 3yrs 3yrs

  • Oct-19 commencement

Irish plc South Dock House 10k New lease €0.6m +2% 1% 10yrs 20yrs

  • Dec-19 commencement

Total 31k €2.0m +12% 3% 5yrs 9yrs Building Review date

Rent @ review Rent achieved Contracted rent vs. expected rent(2)

Montague House May-18 €1.2m €2.5m Modestly ahead Observatory Jul-19 €1.0m €2.0m In line Hardwicke House Jul-18 €0.5m €0.8m Modestly ahead Marine House Jun-18 €0.1m €0.2m In line Total €2.8m €5.5m +2%

(1) Projected average annual net licence fee receivable by Hibernia for the term (2) Per valuer’s assessment at review date

€2.7m incremental new rent

Office leases agreed since Mar-19 Office rent reviews settled since Mar-19

€2.0m incremental new rent

slide-32
SLIDE 32

Hibernia REIT plc INTERIM RESULTS | NOV 2019 32 1,142k sq. ft. 56k sq. ft. 260k sq. ft. Longer-term pipeline Committed development In-place office portfolio

35%

19% 11% 9% 5% 4% 4% 4% 3% 3% 3%

Office portfolio statistics(1)

(1) Office areas only (i.e. excl. retail, basement space, gym, townhall etc.)

Portfolio by area

1.5m sq. ft.(1)

Riot Games ComReg BNY Travelport ESB Informatica Autodesk Twitter OPW HubSpot Remainder

Sep-18 Mar-19 Sep-19 All office contracted rent(1) €54.0m

  • 7%

€50.4m +8% €54.3m In-place office contracted rent(1) €47.3m +7% €50.4m +8% €54.3m In-place office WAULT(2) 7.1yrs +6% 7.5yrs

  • 8%

6.9yrs In-place office vacancy(3) 3% +9pp 12%

  • 12%

(1) Excl. arrangement with Iconic Offices at Block 1 Clanwilliam (2) To earlier of break or expiry (3) By net lettable office area. Office area only (i.e. excl. retail, basement space, gym, Townhall etc.)

Top 10 tenants of in-place portfolio

€54.3m

53% 19% 13% 8% 3% 2%

Industry split of in-place tenants

€54.3m

Insurance & Reinsurance Other Co-working Professional Services Banking & Capital Markets Government Agency TMT 2%

      

slide-33
SLIDE 33

Hibernia REIT plc INTERIM RESULTS | NOV 2019 33

Vacant offices and office leases under review

Building Area (sq. ft.) % of portfolio vacancy Sep-19 ERV (€) Sep-19 ERV (€psf) Comment 2WML 48k 4% €2.8m €57.00

  • In discussions on all vacant space

The Forum 47k 4% €2.4m €47.50

  • In discussions with various parties

Central Quay 28k 3% €1.5m €52.40

  • Substantially all vacant space under offer

Other 11k 1% €0.7m –

  • Marketing space

Total 134k 12% €7.4m

(1) Incl. residential, industrial and retail space

Vacant office space at Sep-19 Office leases currently under review

Building Review date Area (sq. ft.) Contracted rent €m % of Group contracted rent Expected uplift Notes Hardwicke House Jul-18 23k €1.0m 2% Double digit %

  • One rent review active

Total 23k €1.0m 2%

ERV of vacancy in whole portfolio(1) of €7.8m and revisionary potential of €1.1m

slide-34
SLIDE 34

Hibernia REIT plc INTERIM RESULTS | NOV 2019 34 Note 1: To reconcile with “Total potential rent roll” on slide 13: Whole in-place office portfolio contracted rent (€54.3m; from above table) plus residential & industrial rent (€6.1m & €1.6m; see slide 29) plus vacant residential (€0.4m; see footnote 12 on slide 29), vacant industrial (€0.1m; see footnote 12 on slide 29) & vacant office (€10.6m; see above €7.4m + €3.2m) plus in-place office reversion (from above: €55.4m - €54.3m = €1.1m) i.e. €54.3m + €6.1m + €1.6m + €0.4m +€0.1m + €10.6m + €1.1m = €74.2m Note 2: To reconcile with “Total Dublin CBD Offices” ERV on slide 29: €66.0m (from above table) - €3.2m (committed office –unlet) = €62.8m (1) To earlier of review or expiry (2) Mark-to-market (3) 1 Cumberland Place, SOBO Works, 1&2DC, 1WML, 2WML, 1SJRQ (4) 2 Cumberland Place

Office portfolio statistics II

Office portfolio statistics

Contracted rent (€m/€psf) ERV (€m/€psf) WAULT to review(1) (yrs) WAULT to break/expiry (yrs) % of rent upwards only % of next rent review cap & collar % of rent MTM(2) at next lease event Acquired in-place office portfolio €25.9m (€46psf) €26.7m (€47psf) 2.6yrs 3.7yrs 17%

  • 83%

Completed office developments(3) €28.4m (€54psf) €28.6m (€54psf) 3.2yrs 9.8yrs

  • 25%

75% Whole in-place office portfolio €54.3m (€50psf) €55.4m (€51psf) 2.9yrs 6.9yrs 8% 13% 79% Vacant in-place office

  • €7.4m (€50psf)
  • Committed office – unlet
  • €3.2m (€56psf)(4)
  • Whole in-place office portfolio

(after vacancy)

  • €66.0m (€51psf)
  • Rent from offices developed or refurbished by Hibernia comfortably exceeds that of those acquired
slide-35
SLIDE 35

Hibernia REIT plc INTERIM RESULTS | NOV 2019 35

Agenda

Highlights Financial results Market update Developments Portfolio management Conclusion and outlook

Pictured: façade 1SJRQ

slide-36
SLIDE 36

Hibernia REIT plc INTERIM RESULTS | NOV 2019

Conclusion and outlook

✓ Growing earnings and dividends

  • Rental income increasing, costs reduced

✓ More to come from portfolio

  • Near term: ERV of unlet space(1) of €11m
  • Longer term: exciting pipeline of development opportunities

✓ Occupier demand remains strong

  • FDI job creation near record levels; some slowdown in take-up by smaller occupiers
  • Residential demand strong
  • Supply still limited

✓ Hibernia well-positioned with clear strategy, talented team and low leverage

  • Impact of recent tax changes on investment market unclear as yet but Hibernia can capitalise on any opportunities this brings

(1) Incl. 2 Cumberland scheme 36

slide-37
SLIDE 37

Hibernia REIT plc INTERIM RESULTS | NOV 2019 37

slide-38
SLIDE 38

Hibernia REIT plc INTERIM RESULTS | NOV 2019 38

Appendix

Pictured: lift lobby 1WML

slide-39
SLIDE 39

Hibernia REIT plc INTERIM RESULTS | NOV 2019 39

Location of portfolio

Dublin overview Central Dublin portfolio(1)

Key: Residential Industrial Office development Croke Park Fairview Park

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

1 Wyckham Point 2 Gateway & Lands 14 Dundrum View 18 Cannon Place 19 129 Slaney Road 20 Malahide Road

1 2

CBD

18 20 Croke Park Fairview Park River Liffey Kings Inns St. Stephens Green 7 5 6 10 11 3 4 9 8 13 2 15 16 17 Herbert Park 12 Office 19 19 20 20 14 1 14

1 Wyckham Point 2 Gateway & Lands 3 Montague House 4 Hardwicke House 5 2WML 6 1WML 7 Observatory 8 Two Dockland Central 9 One Dockland Central 10 The Forum 11 1SJRQ 12 Cumberland Place & Development Asset 13 Harcourt Square 14 Dundrum View 15 Central Quay 16 One Earlsfort Terrace 17 Marine House & Clanwilliam Court 18 Cannon Place 19 129 Slaney Road 20 Malahide Road

Source: Google Maps, Visit Dublin, Jones Lang LaSalle (1) Property assets > €8m in value as at 30 September 2019

18

slide-40
SLIDE 40

Hibernia REIT plc INTERIM RESULTS | NOV 2019 40

Summary of tax changes in Budget 2020

Tax changes directly impacting Group

  • At present the Finance Bill is still subject to review and possible amendment. The final Finance Act is expected to be signed in December 2019.

Overview Type of change Effective from Impact for Hibernia

Stamp duty increased from 6% to 7.5% on all commercial property transactions in Ireland Market change 9-Oct-19 (unless a binding contract was in place before this and completes by 31 Dec 19)

  • C&W estimates a proforma reduction in value of the Group’s

portfolio at Sep-19 by 1.6% (€22m) which equates to a proforma 1.8% (3.3c) reduction in Group NAVPS @ Sep-19 Increase in the rate of dividend withholding tax (“DWT”) to 25 for all dividends paid by Irish companies Market change 1 January 2020

  • The change affects shareholders directly
  • The impact will vary depending on the individual circumstances of

each shareholder and whether relief is available under a tax treaty Where an entity ceases to be a REIT, there will no longer be a deemed disposal and reacquisition of the assets at market value, unless the REIT has been in existence for 15 years or more. REIT change 9 October 2019

  • No immediate change for Hibernia
  • If Hibernia ceased to be a REIT before the expiration of the 15 year

period (Dec-28), the original tax basis in the assets would apply to subsequent disposals, not the market value at the date of cessation.

  • This could create latent tax for any bidder and reduce the price it

would be prepared to pay to acquire Hibernia 85% of any proceeds from the sale of a rental property not reinvested within a three year window (one year before and two years afterwards) or distributed to shareholders within two years (and thus subject to DWT)

  • f sale will be taxed at 25% (effective rate of

21.25% on the proceeds) REIT change 9 October 2019

  • No immediate impact
  • Longer term impact uncertain until full terms of this change are clear

Tax changes not directly impacting the Group

  • Irish Real Estate Investment Funds (“IREFs”): anti-avoidance rules have been introduced for IREFs. Broadly these seek to counteract perceived aggressive tax

planning by some IREFs by disincentivising the use of high levels of debt as a means of reducing profits liable to IREF tax. While the rules do not directly impact the Group, with almost €17bn of property held within IREF structures at the end of 2017 (source: Central Bank of Ireland) any changes which negatively impact IREFs may indirectly affect the wider property market

  • Schemes of arrangement: stamp duty on corporate acquisitions undertaken by scheme of arrangement increased to 1% (previously 0%)
slide-41
SLIDE 41

Hibernia REIT plc INTERIM RESULTS | NOV 2019 41 Source: Hibernia

Top 10 Hibernia office occupiers by contracted rent Top 10 Dublin office lettings in 9 months to Sep-2019

Hibernia top tenants plus main lettings in market

Tenant Business Sector Contracted Rent (€m) % of Office Rent Unexpired Term (years) Hubspot Ireland Ltd TMT 10.5 19.3% 11.7 OPW

  • Govt. Agency

6.0 11.0% 3.3 Twitter Int’l Company TMT 5.1 9.4% 9.0 Autodesk Ireland Operations TMT 2.8 5.2% 10.5 Informatica Ireland EMEA TMT 2.1 3.9% 10.3 Riot Games TMT 2.0 3.7% 4.8 Electricity Supply Board Government Agency 1.9 3.5% 1.7 Travelport Digital Limited TMT 1.8 3.3% 8.1 BNY Mellon Fund Services Banking & Capital Markets 1.6 2.9% 5.4 ComReg Government Agency 1.6 2.9% 7.8 Top 10 tenants 35.4 65.1% 8.1 Remaining tenants 18.9 34.9% 4.7 Whole office portfolio 54.3 100.0% 6.9 Tenant Industry Building Area (sq. ft.) % of total take-up Salesforce TMT Spencer Place, D1 430k 21% Central Bank State 4 & 5 Dublin Landings, D1 201k 10% OPW State The Distillers Building, D8 182k 9% Facebook TMT Nova Atria, Sandyford 174k 8% Docusign TMT 5 Hanover Quay, D2 99k 5% Paddy Power Other Belfield Office Park, Co Dublin 90k 4% Elavon TMT Cherrywood Business Park, D18 68k 3% VHI Insurance Hampstead Building, Carrickmines, D18 58k 3% OPW State Bishops Square, D2 47k 2% Genesis Aviation Finance Block I, Central Park, D18 25k 1% Total 1,374k 66%

Source: Knight Frank

slide-42
SLIDE 42

Hibernia REIT plc INTERIM RESULTS | NOV 2019 42

Balance sheet highlights Summary income statement

Summary financial statements

€ '000 30-Sep-19 31-Mar-19 Investment properties 1,423,737 1,395,418 Assets held for sale

  • 534

Other non current assets 22,344 14,024 Cash and cash equivalents 25,327 22,372 Trade and other receivables 6,133 40,164 Gross assets 1,477,541 1,472,512 Current liabilities (26,759) (22,378) Liabilities (non-current) (239,160) (231,595) Net assets 1,211,622 1,218,539 Equity share capital 700,499 694,242 Retained earnings 602,780 577,270 Dividends paid/Share Buy-back (94,994) (62,130) Other reserves 3,337 9,157 Total equity 1,211,622 1,218,539 IFRS NAV per share (cent) 175.9 174.7 Diluted IFRS NAV per share (cent) 175.5 173.2 EPRA NAV per share (cent) 175.7 173.3 € '000 6 mths to 30-Sep-19 6 mths to 30-Sep-18 Revenue 33,717 30,656 Rental income 29,749 28,134 Property expenses (1,171) (1,502) Net rental income 28,578 26,632 Performance related fees

  • (2,841)

Administrative expenses (5,753) (7,603) Net finance (costs) (3,586) (3,390) Revaluation & other income/(expense): Investment properties revaluation gains 6,288 48,734 Investment property disposal gain

  • 2,397

Other gains/ (losses) (28) 34 Tax (expense) 26 (3) Total revaluation/other income: 6,286 51,162 Profit for the period 25,525 63,960 Diluted IFRS EPS (cent) 3.7 9.2 EPRA earnings 19,284 12,849 EPRA EPS (cent) 2.8 1.8

slide-43
SLIDE 43

Hibernia REIT plc INTERIM RESULTS | NOV 2019 43

Brexit announcements to date

Dublin ranks highest by Brexit move announcements Financial & legal firms dominate mix of Brexit announcements

Source: Knight Frank @ October 2019

Asset management 32% Finance 20% Fintech 12% Insurance 19% Legal 8% Other 9% 95 66 54 51 42 16 16 Dublin Luxembourg Paris Amsterdam Frankfurt Madrid Brussels

Source: Knight Frank @ October 2019

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SLIDE 44

Hibernia REIT plc INTERIM RESULTS | NOV 2019 44

Expected Dublin office development supply at Mar-19

Dublin CBD (22m sq. ft.) office development pipeline Total Dublin (43m sq. ft.) office development pipeline (incl. suburbs)

Source: Knight Frank/Hibernia

Completed Under construction Probability weighted pipeline Pre-let/let All potential schemes 1.1m 1.4m 2.1m 1.8m 1.6m 2.4m 1.9m 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2016 2017 2018 2019 2020 2021 2022 Potential sq. ft. (m) Expected year of completion 1.0m 0.9m 1.7m 1.3m 0.8m 1.9m 1.1m 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2016 2017 2018 2019 2020 2021 2022 Potential sq. ft. (m) Expected year of completion Knight Frank 2018 take-up: 3.9m sq. ft. Knight Frank 10yr avg. take-up: 2.3m sq. ft. Knight Frank 2018 CBD take-up: 2.8m sq. ft. Knight Frank 10yr

  • avg. CBD take-

up: 1.3m sq. ft. Forecast Actual Forecast Actual

slide-45
SLIDE 45

Hibernia REIT plc INTERIM RESULTS | NOV 2019 45

Gateway/Newlands Cross

45

20 mins

Park & Ride City Centre <30 mins

N7

To Cork

Owned at Sep-19

  • Hibernia’s total holding is 143.7 acres acquired at

an initial cost of €45m(1)(2)

  • Mostly zoned agricultural with some “enterprise &

employment”

  • 8km from central Dublin and has excellent

transport links

  • Long term potential for mixed-use development

(1) Pre-transaction costs (2) Upon re-zoning Hibernia will need to pay one of the former owners an amount totaling 44% of the combined value of the lands, less the €27m already paid, subject to potential minimum payments