Preliminary Results May 2015 Disclaimer This presentation - - PowerPoint PPT Presentation

Preliminary Results

May 2015

This presentation (hereinafter "this document") has been prepared by Hibernia REIT plc (the "Company") and WK Nowlan REIT Management Limited ("WNRML"), the Company’s investment manager, 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, WNRML 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

Disclaimer

3

Market update Acquisitions and developments Portfolio management Conclusion and outlook

Highlights

Financial results

Agenda

Overview

• Highly active but disciplined period of investment
• Central Dublin portfolio assembled and well positioned to deliver rental increases
• Already delivering excellent financial performance and final dividend of 0.5c declared
• Proposed internalisation of management team

4

5

Delivery of new space early in the cycle

• Residential: Block 3, Wyckham Point
• Office: Windmill Lane, SJRQ and Cumberland House
• Longer term: Harcourt Square and Gateway

Driving rental growth through active management, refurbishment and rent reviews

• Average office rent €34.5psf with avg. 2.8 years to review(1)
• Commerzbank House, Observatory live/work units

Further investment

• €139m of cash at 31 March (€96m net of Hardwicke option)
• Substantial debt capacity
• Multiple opportunities being assessed

Lots to come

(1) To earlier of rent review or lease expiry

6

Agenda

Market update Acquisitions and developments Portfolio management Conclusion and outlook Highlights

Financial results

31-Mar 30-Sep Investment Properties (1) 641,296 438,060 Assets Held for Sale 18,499 – Loans 152 67,365 Current Assets (2) 148,094 7,318 Current Liabilities (12,210) (67,149) Non-Current Liabilities (42,697) (42,681) Net Assets 753,134 402,913 Diluted EPRA NAV per share (cent) 111.8 104.7

7

• 16.0% increase in EPRA NAV since March 14 driven by

valuation gains

• 6.8% increase in EPRA NAV since Sept 14 impacted by

effects of second equity issue

• Performance fee due under IMA is non-cash item as it is

settled in shares

• Final dividend of 0.5c per share declared bringing total for

year to 0.8c per share

Financial highlights

Balance sheet highlights Summary income statement

Y/E 31-Mar 6 mths to 31-Mar-15 6 mths to 30-Sep-14 Revenue 18,769 13,011 5,758 Property outgoings (725) (588) (137) Property income 18,044 12,423 5,621 IM base fee (4,690) (2,829) (1,861) IM performance fee accrual (5,772) (5,772) – Administrative expenses (1,584) (865) (717) Operating profit 5,998 2,957 3,043 Finance income 399 161 238 Finance expense (1,974) (1,771) (203) Rental profit 4,423 1,347 3,078 Revaluation/disposal gains: Investment properties 85,768 56,898 28,869 Non-core disposals (net) 2,041 2,040 – Total revaluation/disposal gains 87,809 58,938 28,869 Net income 92,232 60,285 31,947 Diluted IFRS EPS (cent) 18.3 10.0 8.3

(€ in thousands) (€ in thousands) (1) €636.2m at 31-Mar after Windmill option (in current liabilities) (2)

• Excl. non current assets held for sale

8

EPRA NAV per share movement since 30 Sep 14

EPRA NAV per share movement since 30 Sep 14

104.7 96.4 7.5 1.0 0.6 0.1 ( 1.9 ) ( 0.3 ) 0.1 111.8 95 100 105 110 115 120 Sep-14 Investment properties reval. Development properties reval. Profit on sale of non core assets EPRA EPS Secondary equity issue Dividends paid Other Mar-15 Mar-14 EPRA NAV cents per share

Valuation uplift: 8.5 +16%

+7%

9

Balance sheet remains robust

Current financial capacity Incremental investment capacity

Net cash as at 31 March 15 139 Existing BoI revolving credit facility 100 Hardwicke and Montague deferred consideration (43) Current cash & committed facilities 196

c.€400m of capacity for development and acquisitions

(€ in millions) (€ in millions)

Incremental new debt capacity @ 35% LTV 300 Estimated Income from Non-Core Sales 18 Estimated committed and near term capex: (see following page for more detail) (125) Further incremental investment capacity 193

10

Forecast capital expenditure for committed and near term developments and refurbishments

Forecast capital expenditure by financial year

Observatory Live/Work €1.5m Wyckham Point €11.5m Commerzbank House €10m Windmill Lane €21m Windmill Lane €21m Windmill Lane €10m SJRQ €4m SJRQ €23m SJRQ €23m €0.0m €10.0m €20.0m €30.0m €40.0m €50.0m €60.0m March 2016 March 2017 March 2018 Committed Near Term

€48m €44m €33m

Committed Wyckham Point €11.5m(1) Commerzbank House €10m(2) Observatory Live/Work €1.5m Windmill Lane €52m(3) Near Term 1-6 SJRQ €50m(3) Total €125m

(1) €13.5m has already been spent (2) €7.9m net of dilapidations received (3) Assumes 100% interest

11

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

(1) Excludes rent reviews and Cumberland House (2) Net rental income (3) Commercial units only/based on 100% interest (4) ERV of the 55k sq. ft. currently being refurbished

€22.7m €3.7m Wyckham Point(2) €2.5m Commerzbank House(4) €5.1m Windmill Lane(3) Observatory Live/Work €0.4m €4.9m 1-6 SJRQ(3) €0.0m €5.0m €10.0m €15.0m €20.0m €25.0m €30.0m €35.0m €40.0m €45.0m Contracted rent roll as at 31 March 2015 Committed refurb / development Near term development Proforma +€16.6m +73% €39.3m

Based on CBRE estimated rental values, March 2015(1)

Expect committed and near term developments/refurbishments to add c.€17m to rent roll by mid 2018

12

• All 16 team members to move to Company
• Proposed at no material additional cost to Hibernia compared to retaining existing structure for remaining 3.5 years of initial

term

• Expected benefits to Company including broadening potential investor universe, simplifying the structure and transparency and

enhancing accountability

• Upfront payment (50:50 cash and shares and subject to 3yr lock-up/earn out provisions)

– NPV of base fees on 31 March 15 NAV for remaining 3.5yrs less costs assumed by REIT (c. €14m) – Book value of net assets of Investment Manager (c. €2m at 31 March 15 excl. performance fee)

• Potential deferred payments in shares for

– True-up payments to base fee if NAV increases at 31 March 2016, 2017, 2018 – Any JV fees due to IM on Windmill Lane/SJRQ – Performance fees as per existing IMA (15% set aside for non shareholder employees)

• Transaction subject to approval by shareholders and regulatory approvals
• Expected treatment under IFRS 3 as a business combination

Proposed internalisation of Investment Manager

13

Market update

Acquisitions and developments Portfolio management Conclusion and outlook Highlights Financial results

Agenda

2012 2013 2014 2015F 2016F Government (2.1%) 1.4% 0.1% 1.0% 2.0% Investment 5.0% (2.4%) 11.3% 12.5% 14.0% Consumption (12.0%) (0.8%) 1.1% 2.6% 2.6% Domestic demand (0.2%) (0.7%) 2.9% 4.4% 5.1% Exports 4.7% 1.1% 12.6% 5.6% 4.1% Imports 6.9% 0.6% 13.2% 5.4% 4.9%

14

Irish economic outlook positive

Irish GDP growth continues to recover… …supported by increasing investment, consumption and domestic demand

Source: Central Bank of Ireland (1) Excludes financial intermediation

New lending to SMEs(1) growing Broad based recovery in Irish economy

• 4.8% GDP growth in 2014 and Ireland expected to be

fastest growing Euro area economy again in 2015

• Drivers of Irish recovery broadening
• Domestic demand, investment and consumption playing

an increasing role

• 8%
• 6%
• 4%
• 2%

0% 2% 4% 6% 8% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015F 2016F

Source: CSO, Goodbody Source: CSO, Goodbody

€0.0m €0.5m €1.0m €1.5m €2.0m €2.5m €3.0m €3.5m Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14

€0 €200 €400 €600 €800 €1,000 €1,200 €1,400 €1,600 €1,800 Q1 98 Q4 98 Q3 99 Q2 00 Q1 01 Q4 01 Q3 02 Q2 03 Q1 04 Q4 04 Q3 05 Q2 06 Q1 07 Q4 07 Q3 08 Q2 09 Q1 10 Q4 10 Q3 11 Q2 12 Q1 13 Q4 13 Q3 14 € per Sq Ft

15

Commercial and residential property markets recovering strongly

Source: CBRE

€350 €450 €550 €650 €750 €850 €950 €1,050 Q1 11 Q1 12 Q1 13 Q114 Q1 15 € per Sq Ft Data released since IPO

Source: CBRE Source: Central Statistics Office, Residential Property Price Index (2005 = 100) (1) All residential properties (Houses & Apartments) Residential Property Price Index (2005 = 100)

50 70 90 110 130 150 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 National excl. Dublin Dublin Peak 128.8 Sep-07 134.5 Feb-07 Trough 66.1 Mar-13 57.3 Aug-12 Current 75.3 Mar-15 82.5 Mar-15 Peak to Trough

• 49%
• 57%

Current % away from peak 42% 39% National excl. Dublin Dublin Data released since IPO

Commercial property is continuing its recovery Capital values are growing strongly Residential(1) property prices are recovering, led by the Dublin region Residential(1) prices still considerably off peak levels

16

Rental market: Dublin office dynamics

(1): CBRE forecasts March 2015

CBRE forecasting prime rents to peak at c.€65psf in 2017(1)

4 9 8 10 2 1 16 8 7 3 1 2 3 1 5 10 15 20 25 < 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 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 Q1 2015 Millions Sq Ft Take Up 20 Year Average 0.0 1.0 2.0 3.0 4.0 10 20 30 40 50 Q4 00 Q4 01 Q4 02 Q4 03 Q4 04 Q4 05 Q4 06 Q4 07 Q4 08 Q4 09 Q4 10 Q4 11 Q4 12 Q4 13 Q4 14 Q1 15 Millions Sq Ft Millions Sq Ft Occupied Stock Vacant Stock Completions 0% 5% 10% 15% 20% Dublin 1/3/7 Dublin 2/4Dublin 6/8 IFSC City Centre Suburban South Suburbs Overall Vacancy Rate Grade A Vacancy Rate

Number of Grade A vacant buildings in Dublin Dublin office take-up in 2014 was c.2.4m sq. ft. Dublin vacancy rates Q1 2015 Vacancies reducing and limited new supply

Source: CBRE Source: CBRE Source: CBRE Source: CBRE

17

Dublin office expected development pipeline

0.5m 1.8m 2.3m 0.4m 0.2m 0.2m 0.3m

• 0.3m
• 0.3m

0.2m 0.4m

• 0.2m

1.1m 2.0m 3.0 0.4m 0.2m

• 0.5

1.0 1.5 2.0 2.5 3.0 3.5 2015 2016 2017 2018 2019 TBC Millions Sq Ft Spec New Build Spec Refurb Pre - Let

• Sq. Ft.

Former Veterinary College Site 175k New Build Burlington House 165k New Build Former BoI HQ (Miesian Plaza) - Phase 2 134k Refurbishment Former BoI HQ (Miesian Plaza) - Phase 1 86k Refurbishment The One Building 45k Refurbishment McConnell House 44k New Build 76 Lower Baggot Street 40k Refurbishment 23 Shelbourne road 25k Refurbishment 16-18 Pembroke St. Lower 18k Refurbishment Station Building, Park Place 15k Refurbishment Windmill Lane & SJRQ 225k New Build Total Available 976k Pre-Let 366k Total Under Construction 1.3m

Source: CBRE/Management estimates

Estimated development/refurbishment pipeline Estimated pipeline under construction

Total estimated supply pipeline of c.6.9m sq. ft., of which, 1.3m sq. ft. is currently under construction

18

Investment market: high transaction levels expected

Significant investment market activity expected in 2015

Source: CBRE (1) Total is sum of direct investment sales and loan sales

• Direct property sales totalled €4.6bn in 2014 and are expected to fall slightly in 2015 to c. €4bn (source: CBRE)
• Loan sales reached €20.8bn in 2014 and are expected to decrease to c. €15bn (source: CBRE)
• Supply pipeline in 2015 remains strong, with NAMA and private equity funds expected to be the most significant sellers
• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015F € million Direct investment sales Loan sales (price paid) Average direct property Total(1): €25bn Total(1): €19bn

19

Agenda

Market update

Acquisitions and developments

Portfolio management Conclusion and outlook Highlights Financial results

20 Harcourt Square:

• Acquired for €70m in February 2015
• Fully let to OPW generating passing

rent of €4.9m per annum

• Site of 1.9 acres within 700m of St.

Stephen’s Green and potential for significantly enhanced density of

• ffice space in the region of 300k sq.

ft.

• Discussions ongoing regarding near

term lease extension

• Phase 1 planning application

submitted in early April for 134k sq.

• ft. NIA new office space
• Planning notification due in late May

35 – 37 Lower Camden St:

• Acquired for €1.6m in April 2015
• Currently leased to private retailers
• Enhances optionality around future

redevelopment of the site by providing a second access point

Harcourt Square and Lower Camden Street acquisitions

21

Cumberland House acquisition

Date acquired: March 2015 Purchase Price: €49m Existing NIA: 112,000 sq. ft Site area: 1.64 acres, with planning for 250,000 sq. ft. NIA of new offices Rationale:

• Very substantial site with existing planning

permission

• City centre location close to Merrion Square

and Pearse Street railway station

• Options to refurbish or redevelop: active

discussions ongoing with potential occupiers

CONCEPT IMAGE

22

8/9 Hanover Street East:

• Acquired in February 2015 for price of

€3.2m

• Existing NIA of 12,700 sq. ft. of offices
• Passing rent of €110k p.a.

11a Lime Street:

• Acquired in May 2015 for price of €1.4m
• Refurbished house

Rationale:

• Puts Hibernia in a strong position to

actively participate in the regeneration

• f the South Docks area
• Close to Hibernia’s Windmill Lane

quadrant

Lime Street acquisitions

23

Summary of near term developments and refurbishments

Sector NIA post completion (sq ft) Full purchase cost

• Est. Capex
• Est. total cost €

psf/p.unit ERV(1) Comments Fit out or refurbishment Block 3, Wyckham Point Residential 213 units €32m(2) €25m(3) €275k per 2 bed €3.7m(4)

• On budget and ahead of schedule.
• First completed units delivered April 15.
• Project to finish in Q3 2015.
• 35 units let to date and a further 43 bookings

secured Commerzbank House Office 71k(8) €47m(5) €10m(6) €760psf(5) €3.3m(5)

• Refurbishment scheduled to complete

by early 2016

• Active discussions ongoing with

potential tenants Observatory Live/work Office 9.5k office 2k retail €2m €1.5m €280psf €0.4m

• Conversion from Live/Work units to office

accommodation

• Expected completion Q1 2016
• Near agreement to lease entire space

Development Windmill Lane Office 121k office 7k retail 15 resi. Units €8m €52m €425psf(7) €5.1m(7)

• Demolition commenced
• Construction scheduled to start by Q3 2015
• Scheduled completion by end of Q4 2017
• Increase in specification vs. previous

estimates 1-6 SJRQ Office 102k office 5k retail 3 resi. Units €18m €50m €590psf(7) €4.9m(7)

• Revised planning application to be submitted

by end of May 2015

• Demolition commenced
• Expect to complete construction by mid 2018
• Increase in building size and specification vs.

previous estimates Total 304k office 14k retail 231 units €107m €138.5m €17.4m

(1) Per CBRE valuation at 31 March 2015 (2) Includes VAT on acquisition (3) €13.5m spent to 31 March 2015

CONCEPT IMAGE CONCEPT IMAGE

(4) Net (5) For entire (6) €7.9m net of dilapidation charge received. (7) Commercial only (8) 55k sq. ft. of 71k sq. ft. being refurbished plus all common areas

24

• Purchased in Feb 14 for price of €28m
• 213 partially completed units

– 39 x 1 beds – 134 x 2 beds – 40 x 3 beds

• 70 units completed with remainder expected to be completed by

end of Sept 2015

• 35 units let to date and a further 43 bookings secured at average
• f 9% ahead of Sept 14 ERV
• Remains on budget with €25m estimated cost of which €13.5m

has been spent as at 31 March 2015

• Estimated net rent at completion:

€3.7m

• Estimated net yield on cost:

>6%

• Expected profit on cost:

>28%

• Expected unleveraged IRR:

>25%

Block 3, Wyckham Point fit-out

25

Windmill Lane

• 1 acre site purchased for €7.5m
• Planning for 121k sq. ft. of office,

7k sq. ft. of retail and 15 residential units

• Estimated capex of €52m:

increased specification vs. previous estimates

• Demolition commenced and

construction to start by Q3 2015

• Expected completion by end
• f 2017

Windmill Lane and SJRQ developments

1-6 SJRQ

• 0.75 acre site purchased for

€17.8m

• Existing planning for 102k sq. ft. of
• ffice, 5k sq. ft. of retail and 3

residential units

• Revised planning application to be

submitted by end of May 2015 for c.10% larger building

• Estimated capex of €50m reflecting

larger building size and improvements in specification

• Demolition commenced
• Expected completion by mid 2018

CONCEPT IMAGE CONCEPT IMAGE

1-6 SJR Quay Windmill Lane Before 1-6 SJR Quay Windmill Lane

CONCEPT IMAGE

After

26

Summary of development pipeline

Name Sector Current NIA (sq. ft.) NIA post completion (sq. ft.) Purchase Price Comments Cumberland House Office 112k on 1.6 acres Existing planning for 250k sq. ft. new build office €49.0m

• In active discussions with

potential tenants

• Both refurbishment and

redevelopment options being assessed Gateway Logistics 178k on 14.1 acres See right €10.1m

• Expect to submit planning

application for interchange connection road to improve access by Q3 2015

• Assessing site

intensification/change of use

• ptions

Harcourt Square Office 117k on 1.9 acres 285k sq. ft. €70.0m

• Phase 1 planning application

submitted for 134k sq. ft. NIA of

• ffices
• Discussions ongoing regarding

near term lease extension Total 407k on 17.6 acres 535k sq. ft.(1) €129.1m

(1) excludes Gateway

CONCEPT IMAGE

27

Agenda

Market update Acquisitions and developments

Portfolio management

Conclusion and outlook Highlights Financial results

Traditional Core 240k sq. ft. 34% South Docks 179k sq. ft. 26% IFSC 277k sq. ft. 40%

28

Portfolio statistics

Portfolio by sector (value)

(1) Including capex (2) Pre full ownership of Hardwicke and Montague

Office portfolio by net lettable area

EPRA portfolio net initial yield as at 31 March 2015 of 4.4%

Office IFSC €204m 32% Office South Docks €108m 17% Office Traditional Core €164m 26% CBD Office Development/Refurb €84m 13% Industrial €10m 2% Residential €67m 10% % uplift since Sept 14 without purchases since Sep 14 Value at 31 March 15 (all assets)

• excl. acq.

Costs(1)/ with acq. costs % uplift since acquisition (all assets) Yield

• n cost

Passing rent & yield on cost(2) % uplift since Sept 14 with purchases since Sep 14 Dublin CBD Office Portfolio 14% €476m 19% / 16% €18.8m 5.1% 11% Dublin CBD Office Development / Refurb 25% €84m 12% / 8% €0m 0% 7% Dublin Residential 12% €67m 37% / 23% €0m 0% 12% Dublin Industrial / Logistics 2% €10m 2% / 0% €0.5m 5.1% 2% Whole investment property portfolio As at 31 March 14% €636m 20% / 16% €19.3m 3.8% 11%

€.0m €1.0m €2.0m €3.0m €4.0m €5.0m €6.0m Sept-15 Mar-16 Sept-16 Mar-17 Sept-17 Mar-18 Sept-18 Mar-19 Sept-19 Mar-20 Sept-20 Contracted Rent Six months ended

29

Existing schedule of office rent reviews(1)

To earlier of rent review or lease expiry

(1) To earlier of rent review or lease expiry. Excludes Block 3, office developments and refurbishments and Gateway. Also excludes Morgan Stanley, various parking, Open Hydro, Eurospar and Parkrite (2) % of total office rent Sept 16 total: €4.0m % of total rent(2): 18%

• Avg. rent:

€39psf Mar 17 total: €1.8m % of total rent(2): 8%

• Avg. rent:

€28psf Sept 18 total: €2.4m % of total rent(2): 11%

• Avg. rent:

€27psf Mar 20 total: €3.2m % of total rent(2): 15%

• Avg. rent:

€37psf Sept 20 total: €0.8m % of total rent(2): 4%

• Avg. rent:

€46psf Sept 15 total: €1.3m % of total rent(2): 6%

• Avg. rent:

€29psf Sept 17 total: €0.8m % of total rent(2): 3%

• Avg. rent:

€30psf Sept 19 total: €1.2m % of total rent(2): 5%

• Avg. rent:

€26psf Mar 18 total: €0.1m % of total rent(2): 0.4%

• Avg. rent:

€24psf

Weighted average period to rent review or lease expiry of 2.8 years

Mar 19 total: €5.3m % of total rent(2): 24%

• Avg. rent:

€33psf

Key refurbishments

30

• Commerzbank lease surrender delivered 55,000 sq. ft. back to

Hibernia for €2.4m premium and a dilapidations charge

• Space is being refurbished to Grade A standard

–

Estimated cost €10m or €7.9m net of dilapidations received

–

Expected completion in Q1 2016

• In active discussions with potential tenants on refurbished space
• Estimated profit on cost upon repositioning:

>20%

• Acquired live/work units plus 2,000 sq. ft. of retail space as part of

Observatory acquisition

• Planning permission granted in Q1 2015 for conversion to office use

providing 9,500 sq. ft. NIA office accommodation

• ERV of €380k
• Close to agreement with tenant to lease space
• Allocated cost in acquisition:

€1.7m

• Cost to complete conversion:

€1.5m

• Project completion due:

Q1 2016

• GDV as per March 15 valuation:

€5.3m

• Expected profit on cost:

>65%

CONCEPT IMAGE CONCEPT IMAGE

Commerzbank House Observatory live/work units

Sold or contracted at year end Units Carrying value(1) Sales price Profit Residential assets 18 5,268 5,564 296 Commercial assets 3 850 1,212 362 Development sites 2 6,250 9,415 3,165 CGT estimate (690) Total 23 12,368 16,191 3,133 Sale agreed or committed at year end Units Carrying value(1) Price agreed Expected profit Residential assets 19 4,541 5,467 926 CGT & Sales Cost Estimate (315) Total 19 4,541 5,467 611 Remaining non-core assets Units Carrying value(1) Residential assets 43 11,107 Commercial assets 3 2,310 Total 46 13,417

31

Progress on sale of Dorville non-core assets

Progress on sale of Dorville non-core assets

(€ in thousands) (1) Excludes stamp duty and other purchasing costs

Aiming to complete sale of non-core assets by December 2015

32

Agenda

Market update Acquisitions and developments Portfolio management

Conclusion and outlook

Highlights Financial results

33

 Strategy of disciplined investment in central Dublin delivering strong

returns

 Lots to come from active management of reversionary portfolio and

delivery of development projects

 Dublin market backdrop supportive and pipeline of assets for sale

remains high

Conclusion and outlook

35

Appendix

Location of Hibernia portfolio(1)

Dublin overview 36 Central Dublin portfolio(1)

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

3 1

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

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

Key: Office Residential Industrial Development

Office properties all within CBD; ex-CBD acquisitions both with good transport links

Source: Google Maps, Visit Dublin, Jones Lang LaSalle (1) Property assets > €5m in value Croke Park Fairview Park Alexandra Basin River Liffey Herbert Park Kings Inns

• St. Stephens

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

37

Portfolio Summary

Sold or contracted at year end Value as at March 15 (all assets) % uplift since Sep 14 without purchases since Sep 14 % uplift since Sep 14 with purchases since Sep 14 % uplift since acquisition (all assets)

• excl. costs(1) / inc. costs
• 1. Dublin CBD Offices

Traditional Core 164 10% 4% 14% / 11% IFSC 204 11% 11% 16% / 14% South Docks 108 25% 24% 35% / 32% Total Dublin CBD Offices 476 14% 11% 19% / 16%

• 2. Dublin CBD Office

Development/Refurbishment 84 25% 7% 12% / 8%

• 3. Dublin Residential

67 12% 12% 37% / 23%

• 4. Industrial

10 2% 2% 2% / 0% Total Investment Properties 636 14% 11% 20% / 16%

(€ in millions) (1) Includes capex

Tenant Breakdown

38

• Office portfolio represents 98% of contracted rent
• Average contracted rent per sq. ft. of office portfolio: €34.5
• Weighted average period to rent review or expiry: 3 years
• WAULT to earlier of break or expiry: 4 years
• WAULT to expiry: 8 years

€5.5m 24% €2.9m 13% €2.8m 13% €2.2m 10% €2.0m 9% €1.2m 5% €1.0m 5% €0.7m 3% €0.7m 3% €0.5m 2% Remainder €3.2m 14% Banking & capital markets €8.0m 35% Government €5.5m 24% Insurance & Reinsurance €3.6m 16% TMT €2.3m 10% Other €1.8m 8% Professional services €1.3m 6% Retail €.2m 1%

€22.7m Tenant breakdown by industry Top 10 tenants by contracted rent €22.7m

€0.6bn €3.8bn €3.1bn €3.6bn €7.7bn €0.8bn €0bn €5bn €10bn €15bn €20bn €25bn 2010 2011 2012 2013 2014 Q1 2015 €20bn Development 20% Retail 19% Office 15% Residential 15% Industrial 3% Land 17% Hotel & Leisure 6% Non Real Estate 4% Other 1%

Opportunities remain within the NAMA portfolio

€20bn of NAMA disposals since 2010 39 NAMA portfolio by sector (Dec-14)

NAMA expected to continue to bring assets to market in order to reach deleveraging target of €7.4bn of loans

• ver 2015/2016

Dublin €7.7bn 69% Urban Centre €1.7bn 15% Commuter Belt €1.0bn 9% Rest of ROI €0.8bn 7%

Remaining NAMA Irish portfolio (€11.1bn) (Dec-14)

Source: NAMA

Growth of capital and rental values by sector

40

• 4%
• 2%

0% 2% 4% 6% 8% 10% 12% Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Retail Office Industrial Data released since IPO

• 4%
• 2%

0% 2% 4% 6% 8% 10% 12% Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Retail Office Industrial Data released since IPO

Source: IPD

Quarterly change in capital values by sector Quarterly change in rents by sector

Source: IPD

41

Management fees(1)

• Scaling fee for invested EPRA NAV paid quarterly in three tranches:

–

On invested EPRA NAV up to €450m, 0.25% of invested EPRA NAV (quarterly payment)

–

On incremental invested EPRA NAV above €450m but below €600m, 0.2% of invested EPRA NAV (quarterly payment)

–

On incremental invested EPRA NAV above €600m, 0.15% of invested EPRA NAV (quarterly payment)

–

For uninvested proceeds, 0.125% of total balance (paid quarterly) Performance fees(2)

• Calculated annually on both an absolute and a relative basis. Each basis has a 50% weighting in the overall performance fee (i.e. fees calculated separately on a 100%

basis and then halved)

• Absolute basis (50% of total): calculated based on outperformance of the following hurdle rates:

–

15% fee of EPRA NAV total return(3) above 10% hurdle, and

–

20% fee of EPRA NAV total return(3) above 15% hurdle

–

Hurdle resets annually based on closing EPRA NAV and is subject to a high watermark

• Relative basis (50% of total): calculated based on outperformance benchmarked against the IPD Ireland index:

–

30% fee of total annual property return (increase in gross asset value plus rental income)(4) above IPD Ireland index hurdle

–

Hurdle resets annually based on IPD Ireland returns and is subject to a rolling IPD Ireland-driven high watermark

• All performance fees paid through the issue of shares, subject to a staggered 3-year lock-up release, with 1/3rd released after the first, second and third anniversaries of

the financial reporting year-end

–

Lock-up release will be temporarily suspended if EPRA NAV falls below the gross IPO proceeds Management contract

• 5 years (from Nov-13), following which automatically extended on a rolling 3 year basis unless terminated
• 12 month notice period applicable to Hibernia REIT and Investment Manager (earliest termination is at end of initial 5 year period)
• Key person termination rights to be included

Conflicts

• Hibernia REIT to have first refusal on all property investments offered to W.K. Nowlan & Associates
• Manager employees will not be involved in a similar vehicle without Board approval
• Manager employees will not advise any investor in competition with Hibernia REIT
• All conflicts of interest to be disclosed to Hibernia REIT

Summary of IMA

(1) Management fee calculated by reference to EPRA NAV at the end of each quarter. (2) For both management and performance fees, intra-year acquisitions and disposals of property will be assumed to have taken place on the first day of the financial year in which the acquisition/disposal occurred. (3) EPRA NAV total return = EPRA NAV increase + dividends declared for year, adjusted to exclude effects of any share issues. (4) Calculation excludes proceeds that have not yet been invested (i.e. calculated on value of property assets only until fully invested).

Summary of Irish REIT regime Established

• Introduced by Finance Act 2013

Legal form

• Irish incorporated PLC company with an allotted share capital of not less than €38,092

Shareholder requirements

• No closely held company; 10% threshold for corporate shareholders

Listing requirements

• Listed on the main market of a stock exchange in an EU Member State

Business restrictions

• >75% of aggregate income derived from property rental business
• >75% of portfolio market value must relate to property rental business
• Within 3 years of commencement, the REIT must hold at least 3 separate assets, none of which having a market value

>40% of total portfolio

• Irish and non-Irish assets
• Authorised sectors: commercial properties, industrial properties, residential properties

Leverage restrictions

• Profit financing ratio of at least 1.25 : 1
• Profit financing ratio = property income plus property finance costs divided by property finance costs

Tax

• Tax exemption for certain income from property rental business, 12.5% for non property rental income
• Tax exemption for capital gains, 33.0% for non property rental assets
• Dividend withholding tax of 20.0%
• Irish stamp duty of 1.0% apply to the purchase of shares in a REIT

Distribution requirements

• Property income: 85%
• Capital gains: no distribution obligation

42

Overview of the Irish REIT regime

Summary of Irish REIT regime

Source: European Public Real Estate Association.

43

Highly experienced management team…

WK Nowlan REIT Management

Kevin Nowlan Chief Executive Officer

>20 years of experience in the Irish property market Previous positions include Senior Portfolio Manager at NAMA, Portfolio Manager at Treasury Holdings and Assistant Manager at Anglo-Irish Bank plc >40 years of experience advising on investment in Irish commercial property Previously Head of Property Investment of Irish Life from 1985 to 1995, the largest property fund manager in Ireland. Established WK Nowlan in 1995, one

• f the largest property

asset managers in Ireland >35 years of experience in the Irish and US property markets Founder and CEO of Willett Companies LLC, boutique investment company which managed, developed and/or owned 2 million sq. ft. of real estate >20 years of experience in the Irish property market Previously, manager of WK Nowlan Property Management Division, covering Irish and UK properties Previously worked for 9 years at Credit Suisse in the Investment Banking Division with a particular focus on corporate finance in the real estate sector Qualified as a Chartered Accountant at PwC in 2005 >7 years of experience in the Irish property market Previous senior positions within Clancourt Group and Michael McNamara & Company Spent three years working in corporate finance with BDO where he qualified as a Chartered Accountant

Tom Edwards-Moss Chief Financial Officer Frank O’Neill Chief Operations Officer Frank Kenny Development Director Bill Nowlan Investment Director Richard Ball Chief Investment Officer

Breadth of skill set and experience encompassing institutional property management and development in prime and value add space, with strong relationships with key decision makers in banking and property

44

…with overview from a highly qualified Board and supported by WK Nowlan

• WK Nowlan is a property asset management company staffed by 26 full time property, financial and support staff
• Team has a broad mix of skills covering all the key professional aspects of property management and development: surveyors and valuers,

architects, engineers, portfolio managers and financial analysts

• Capacity to execute multiple transactions simultaneously
• Ability to manage complex commercial and residential projects
• Selected clients include:

Governance

Hibernia REIT plc

Support

WK Nowlan Property Colm Barrington Senior Independent Non-Executive Director Non-Executive Chairman

• f Aer Lingus plc, Non-

Executive Director of IFG Group plc and CEO & Director of Fly Leasing Ltd Previously MD of Babcock and Brown in Ireland Danny Kitchen Non-Executive Chairman Non-Executive Chairman

• f Workspace Group plc

and Non-Executive Director of LXB Retail Properties plc Previously Finance Director of Green Property plc Stewart Harrington Independent Non- Executive Director Non-Executive Director

• f the parent company
• f BWG Group and of

Stafford Holdings and Director of Killeen Properties Previously a Partner in Jones Lang Wootton (now JLL) Founding Partner of Harrington Bannon Chartered Surveyors Terence O’Rourke Independent Non- Executive Director Non-Executive Director

• f The Irish Times and

Chairman of Enterprise Ireland Previously a board member of the Chartered Accountants Regulatory Board and Managing Partner of KPMG Ireland Bill Nowlan Non-Executive Director Previously Head of Property Investment of Irish Life from 1985 to 1995, the largest property fund manager in Ireland