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 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 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 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 Hibernia REIT plc INTERIM RESULTS | NOV 2019 2

Agenda Highlights Financial results Market update Developments Portfolio management Conclusion and outlook Pictured: Reception, Central Quay Hibernia REIT plc INTERIM RESULTS | NOV 2019 3

Results summary 6 months 6 months to Sep-19 (1) 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 portfol io 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 Hibernia REIT plc INTERIM RESULTS | NOV 2019 4

Business highlights 1. Growing income and reduced costs 4. Improving sustainability performance • Contracted rent €62.0m, +8% since Mar -19 • Three star GRESB rating in 2019, score +17pp on prior year • Net rental income €28.6m, +7% vs Sep -18 • Full-time Sustainability Manager joining in Jan-20 • EPRA EPS of 2.8c, +56% vs Sep-18 5. Increasing dividend 2. Making progress with developments • 1.75c interim DPS declared, +17% on Sep-18 • 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) (1) Incl. acquisition costs (2) Buyback programme completed on 11 November 2019 Hibernia REIT plc INTERIM RESULTS | NOV 2019 5

Looking ahead 1. Occupier demand remains strong 5. Hibernia still well positioned • FDI job creation near record levels • Impact of Budget 2020 tax changes on investment market unclear as yet • Some smaller tenants have deferred lettings • 15.6% LTV and €174m of cash and undrawn facilities • Supply still limited in office and residential sectors • Clear strategy and experienced team 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) (1) Incremental new Grade A office space is 260k sq. ft. with incremental ERV of €18m Hibernia REIT plc INTERIM RESULTS | NOV 2019 6

Agenda Highlights Financial results Market update Developments Portfolio management Conclusion and outlook Pictured: Atrium, 1SJRQ Hibernia REIT plc INTERIM RESULTS | NOV 2019 7

Financial highlights Sep-19 Balance sheet (pro forma stamp duty) (1) Sep-19 Mar-19 Change (2) +0.6% (3) Portfolio value €1,401.5m €1,423.7m €1,395.4m 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% Sep-19 Income statement (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% (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) Hibernia REIT plc INTERIM RESULTS | NOV 2019 8

EPRA NAV per share movement since 31 March 2019 178 2.8c 177 176 0.7c 175.7c 175 EPRA NAV per share (c) 1SJRQ (2.0c) Net valuation uplift: 0.9c +1.4% 0.1c 0.8c (1) 174 -1.8% 2 Cumberland 173.3c Other 173 Trad. core 172.4c (3.3c) 172 Like-for- like “in - place” office valuation: +1.4% (2) (c.85% ERV impact) 171 170 Mar-19 Investment Development EPRA earnings Dividends paid Share buyback Sep-19 Est. stamp duty Sep-19 properties reval. properties reval. impact (pro forma stamp duty) (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 Hibernia REIT plc INTERIM RESULTS | NOV 2019 9

EPRA earnings movement versus period ended 30 Sep 2018 Direct property costs €0.3m Admin costs (€1.4m) €22m Disposals (€2.1m) New lettings €1.4m (1) €6.2m Acquisitions €0.2m Rent reviews €1.1m (2) €20m €19.3m Lease (€1.2m) (€1.1m) terminations ( €0.2m ) €18m EPRA earnings 1SJRQ €2.2m €1.3m €16m +50% €2.2m €14m (€1.9m) €12.8m €12m €10m (3) Sep-18 Developments Leasing activity Disposals & IMA savings Operating costs Finance costs Sep-19 completed in prior acquisitions (net) year (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 Hibernia REIT plc INTERIM RESULTS | NOV 2019 10