The depths to which the Irish property market sank in the wake of the financial crisis can be gauged by the astonishing renaissance since. Hibernia Reit (HBRN), the property company floated in December 2013 to exploit the recovery in property values, experienced an astonishing upward valuation in its property portfolio in the half year to September of €63.6m (£89.6m), compared with €18.8m in the previous first half.
And with the Irish economy showing the fastest rate of growth in the eurozone, this recovery is expected to continue. For while capital values in prime office property in Dublin grew by 26 per cent year on year, they remain over 30 per cent below peak levels. However, the pace of appreciation in capital values is expected to slow, and rental growth is expected to be the main growth driver.
New lets secured in the first half included 85,000 sq ft at Cumberland House, and a pre-letting agreement on 27,500 sq ft on One Dockland Central, currently being refurbished. All in all, the contracted rent roll has risen 52 per cent to €34.4m since the March year-end.
Analysts at Cantor Fitzgerald expect net asset value of 127¢ per share by March 2016, from 112¢ in 2015.
| HIBERNIA REIT (HBRN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 133¢ | MARKET VALUE: | €903m | |
| TOUCH: | 128-136¢ | 12-MONTH HIGH: | 137¢ | LOW: 105¢ |
| DIVIDEND YIELD: | 0.9% | DEVELOPMENT PROPERTIES: | nil | |
| PREMIUM TO NAV: | 8% | |||
| INVESTMENT PROPERTIES: | €739m | NET CASH: | €115m | |
| Half-year to 30 Sep | Net asset value (¢) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2014 | 105 | 31.9 | 8.3 | 0.3 |
| 2015 | 123 | 73.7 | 11.0 | 0.7 |
| % change | +18 | +131 | +33 | - |
Ex-div: tba Payment: tba £1=€1.41 | ||||
