Hibernia REIT (HBRN) was floated in late 2013 with a view to exploiting the recovery in property values in Dublin, and the year to March 2017 was another of significant progress. Higher operating expenses and a more modest valuation uplift on the portfolio may have dented headline profits, but net rental income jumped by 56.3 per cent to €39.7m (£34.3m), which helped to boost adjusted net asset value (NAV) by 11.9 per cent to 146¢.
In a market where demand continues to outstrip supply, Hibernia completed three schemes delivering 191,000 sq ft of office space, with another 295,000 sq ft in three schemes set for completion by mid-2018. All in all, the near-term and longer-term pipeline comprises five schemes covering 660,000 sq ft.
The contracted rent roll is now up a quarter on the previous year at €48.3m, while recently completed lettings have extended the average remaining lease length to 10.7 years. Finances remain in pretty good shape; for example, €289m of cash and undrawn facilities, while net debt of €155m equates to a loan-to-value ratio of just 13.3 per cent.
Vacancy rates in the Dublin market were marginally higher at 7 per cent as new supply comes on stream, but rental growth remains strong, with prime rents rising from €57.5 per sq ft in the first quarter of 2016 to €62.5 this year.
| HIBERNIA REIT (HBRN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 132¢ | MARKET VALUE: | €905m | |
| TOUCH: | 130.75-132¢ | 12M HIGH | 144¢ | LOW: 114¢ |
| DIVIDEND YIELD: | 1.7% | TRADING STOCK: | €0.39m | |
| DISCOUNT TO NAV: | 11% | |||
| INVEST PROPERTIES: | €1.17bn | NET DEBT:n | 15% | |
| Year to 31 Mar | Net asset value (¢) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2014* | 96 | -0.8 | -0.2 | nil |
| 2015 | 112 | 93 | 18.4 | 0.8 |
| 2016 | 132 | 136 | 20.2 | 1.5 |
| 2017 | 148 | 119 | 17.4 | 2.2 |
| % change | +12 | -13 | -14 | +47 |
Ex-div: 6 Jul Payment: 31 Jul *13 Aug 2013 to 31 Mar 2014 | ||||
