Preliminary Results May 2018
Disclaimer This presentation (hereinafter "this document") has been prepared by Hibernia REIT plc (the "Company“ or “Group”) 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 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. Pictured on cover: 1WML Reception, Windmill Quarter 2
Agenda Highlights Financial results Market update Disposals and acquisitions Developments Portfolio management Conclusion and outlook 3
Results summary 12 months to Mar-18 12 months to Mar-17 Portfolio value (1) +6.6% +9.9% Excluding stamp duty increase (1,2) +10.9% Total property return (“TPR”) (3) +11.6% +14.5% TPR vs. IPD Ireland Index +4.8% +3.3% EPRA NAV per share +8.7% +11.9% Excluding stamp duty increase (2) +14.0% EPRA earnings +29.4% +192.5% (1) Like-for-like change (excl. finance costs) (2) Stamp duty on commercial property transactions increased from 2% to 6% in Budget 2018 effective 11 Oct 17 (3) Excl. acquisition costs 4
Business highlights • Development programme delivering and pipeline bolstered – Two schemes completed, delivering 197k sq.ft. and profit on cost of >65% (1) – Three committed schemes delivering 222k sq. ft., mainly in 2018 – Longer term pipeline schemes progressing – Acquisition of further land at Gateway • Income and WAULT increasing due to new lettings and rent reviews – Contracted rent roll of € 56.0m (2) , +16% since Mar-17 and +13% in H2 – Letting of committed developments expected to add c. € 13m (3) Acquired in-place offices reversionary potential c. € 6m (3) (avg. 2.6yrs to review/expiry) – – WAULT to break/expiry of in-place offices now 7.3yrs, +9% since Mar-17 and +6% in H2 • Disciplined and profitable recycling of capital – Three smaller assets sold in H2 for € 35.8m, in aggregate 21% ahead of Sept-17 valuation – Acquisitions totalling € 39.1m, enhancing portfolio • Financial strength to fund further investment – Net debt of € 203m (4) , LTV 15.5% – Cash and undrawn facilities net of commitments of € 120m • Dividend growing as income increases – 1.9c final dividend proposed taking dividend for year to 3.0c, +36% on prior year (1) At practical completion (2) Contracted rent incl. net residential rent and excl. Iconic Offices arrangement in Clanwilliam (3) At valuers ’ ERV at 31 March 2018 (4) Excl. cash held relating to tenant deposits and service charge accounts 5
Looking ahead • Strong occupier demand in Dublin for offices and residential accommodation – Broad-based Irish economic growth and favourable demographics – FDI and “latent Brexit” also contributing – Limited new supply in both office and residential sectors • More to come from portfolio in near term – 172k sq. ft. of new offices on track for delivery in 2018, completing Windmill Quarter – 50k sq. ft. office scheme at Cumberland Place now committed, expected completion in H1 2020 – 21% reversionary potential within acquired in-place portfolio and average 2.6 years to review/expiry • Substantial longer term development pipeline – Three office schemes adding up to 227k sq. ft. of incremental new office space – Potential for mixed-use scheme at Gateway • Expect recycling of capital to continue • Hibernia well positioned – Clear strategy and talented team – Cash and undrawn facilities of € 120m (1) (1) Net of committed capex 6
Agenda Highlights Financial results Market update Disposals and acquisitions Developments Portfolio management Conclusion and outlook 7
Financial highlights Balance sheet Mar-18 Mar-17 Change (1) Portfolio value €1,308.7m €1,167.4m +6.6% Net debt €202.7m €155.3m +30.5% Loan to value 15.5% 13.3% +16.5% Net assets €1,111.7m €1,013.9m +9.6% EPRA NAV per share 159.1c 146.3c +8.7% Income statement Mar-18 Mar-17 Change Net rental income €45.7m €39.7m +15.1% Revaluation and disposal gain €87.8m €103.5m (15.2%) Net profit €107.1m €118.6m (9.7%) EPRA earnings €19.4m €15.0m +29.4% EPRA EPS 2.8c 2.2c +27.3% Full year dividend per share 3.0c 2.2c +36.4% (1) Like-for-like change (excl. finance costs) 8
EPRA NAV per share movement in since 31 March 17 Strong uplift in EPRA NAV per share in year to Mar-18 despite stamp duty impact 2.8c 170 Valuation uplift: 19.3c 0.9c 8.1c (2.5c) 165 1WML EPRA NAV cent per share 159.1c 160 1SJRQ ( 7.7c ) 11.2c IFSC 2WML South 155 Docks +9% Traditional 150 Core 146.3c Other (1) 145 +5.7% (2,3) (c.100% yield impact) Like-for-like in-place office valuation: 140 Mar-17 Investment Development Disposal gains EPRA earnings Dividends paid Est. stamp duty Mar-18 properties reval. properties reval. impact (1) Residential/Gateway (incl. land) (2) 5.7% excluding stamp duty increase impact. 1.8% including impact of stamp duty increase (3) Represents c. € 30m of the net property valuation uplift in the period excluding the impact of the stamp duty increase (c. € 10m including impact of stamp duty increase). Excl. 2DC, Clanwilliam, Marine & Harcourt on the basis that capex was spent on the property or the valuation assumptions changed during the period 9
EPRA earnings movement since 31 March 17 Uplift in EPRA earnings since 31 March 2017 Developments completed in € 3.7m Promote fees paid (1) € 2.3m prior year Performance related pay ( € 0.7m) € 25m 1WML € 2.5m Other admin ( € 0.7m) € 0.9m 2DC ( € 0.4m) € 0.2m € 5.8m ( € 0.6m) € 19.4m € 20m ( € 1.9m) EPRA earnings € m +29% € 15.0m € 15m Acquisitions & disposals € 0.8m € 10m New lettings & rent reviews € 1.7m Promote fees (net of tax) (1) ( € 2.3m) Lease expiries & other ( € 2.3m) Other losses € 0.4m € 5m € 0m Mar-17 New lettings In-place lease Admin costs Finance costs Other Mar-18 on completed events/acquisitions (net) developments (1) Promote fee received and paid in prior year related to Windmill Lane joint venture 10
Growth in distributable income Net rental income growth EPRA EPS and dividend growth 154% increase in NRI in last three years Interim DPS Final DPS EPRA EPS 50 3.5 45 3.0 40 2.5 35 30 1.9 Per share (c) 2.0 NRI ( € m) 25 € 45.7m 1.5 1.45 20 € 39.7m 0.8 15 € 30.3m 1.0 10 € 18.0m 0.5 1.1 0.5 0.75 5 0.7 0.3 0 0.0 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Growing rental income driving increases in dividend: expect 85%-90% payout in future 11
Substantial financial capacity in place Financial capacity • New interest rate hedging put in place in Sep-17, taking total 400 hedged from € 144m to € 244m (all at 1% Euribor) • RCF used to repay secured facility on 1WML in Feb-18: total 350 Remaining inv. LTV 27% (1) repayment € 17.5m capacity € 120m 300 • Looking at options to diversify debt sources and maturity dates Net debt and LTV progression 250 Debt capacity ( € m) Committed capex • RCF LTV 20% (1) € 77m • 250 20% € 400m • Nov- 20 200 maturity 200 • 205bps margin 15% • Floating charge 150 Net debt ( € m) 150 Hedged LTV (%) € 244m 10% Net debt € 203m 100 LTV 16% 100 € 203m € 181m € 155m 5% 50 € 111m 50 € 53m 0 0 0% Facility Drawings Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Through-cycle LTV target remains 20-30% (1) Forecast LTV based on valuers ’ estimates of GDV at Mar -18 12
Recommend
More recommend
