Preliminary Results May 2017

Transcription

1 Preliminary Results May 2017

2 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/Town Hall 2

3 Agenda Highlights Financial results Market update Acquisitions and developments Portfolio management Conclusion and outlook 3

4 Highlights Strong financial performance, driven by developments Portfolio value of 1.2bn, up 9.9% in the year (1) (developments up 47.2% (1) ) and 7.4% in H2 (1) 12 month total property return of 14.5% vs IPD Ireland Index up 11.2% EPRA NAV per share of 146.3c, up 11.9% in year EPRA earnings up 192.5% (2) to 15.0m, dividend for year of 2.2c up 46.7% Development programme making excellent progress and enhanced by acquisitions Three schemes completed, delivering 191k sq. ft. and profit on cost of 50% Four committed schemes delivering 354k sq. ft. of offices over period to late 2018 Pipeline expanded to 5 schemes (660k sq. ft.) with acquisition of Clanwilliam Court Income and WAULTs increased significantly through leasing activity 320k sq. ft. of new office lettings/lease extensions in the year Contracted rent roll now 48.3m, +24% in the year WAULT to break of in-place offices now 6.7yrs, +56% in the year Asset management initiatives Building management department formed Flexible workspace arrangement with Iconic Offices established Modest leverage and flexible funding in place Net debt 155.3m, LTV 13.3% (March %) Cash & undrawn facilities 288.9m, 149.5m net of committed capex and anticipated repayment of 1WML facility (1) Net of capex and acquisition costs (2) Excl. 4.9m surrender premium 4

5 Portfolio overview as at 31 March 2017 Portfolio by sector (by value) Office and development portfolio (by net lettable area) CBD Office Development 14% Industrial 1% Office Traditional Core 38% Residential 10% Office IFSC 22% In-place office portfolio 915k sq. ft. Total: 1.2bn Office South Docks Total: 1.7m sq. ft. (1) 15% Committed developments (pre-let) 73k sq. ft. Committed developments (to let) 280k sq. ft. Near term pipeline 50k sq. ft. (2) Longer term pipeline 336k sq. ft. (3) Portfolio key statistics Number of In-place office rent properties Portfolio rent (4) and ERV (4) In-place office WAULT (4) In-place office vacancy 28 properties Passing: Contracted: 42.2m 48.3m Contracted: 40psf ERV: 48psf (5) To review/expiry: 3.5yrs To break/expiry: 6.7yrs 3% (1) Office areas only (i.e. excl. retail, basement space, gym, townhall etc.) (2) Cumberland Place (Phase 2) (3) Incl. incremental additional sq. ft. from Harcourt Square, Clanwilliam Court, Marine House, Earlsfort Terrace and Gateway (c.115k sq. ft. of office.) Note that there is also further development potential at Gateway for c.130k sq. ft. of offices (4) Excl. arrangement with Iconic Offices in Block 1, Clanwilliam Court (5) ERV as per Mar 17. Note: CBRE assume c. 18.2m capex to achieve this ERV 5

6 Strategic priorities Increase rental income and duration Delivery of development projects and preparation of pipeline of future developments Deploy capital into selective acquisitions or new developments Maintain an efficient balance sheet (target LTV 20%-30%) Recycle capital to monetise gains and enhance forward returns Deliver improvements in environmental efficiency of portfolio Good progress made in the year with more to come 6

7 Looking ahead Lots to come from portfolio in near term 354k sq. ft. of offices being delivered through four schemes in next 18 months o Includes Hanover Building now added to committed schemes: 71k (1) sq. ft. to deliver by late 2018 Acquired in-place portfolio is 24% reversionary and has 3.2 years to rent review/expiry and longer term Pipeline of five further developments with potential to add up to 386k sq. ft. of net new office space 56% of pipeline already planning approved Irish economy remains strong, Brexit still an unknown Growth expectations raised Expect Brexit movers will start to make decisions on destinations in H2 Hibernia well positioned Talented team Clear strategy 149.5m of cash and undrawn facilities (2) Hibernia well positioned (1) 59k sq. ft. offices, 12k sq. ft. gym (2) net of committed developments and anticipated repayment of 1WML facility 7

8 Agenda Highlights Financial results Market update Acquisitions and developments Portfolio management Conclusion and outlook 8

9 EPRA NAV per share (cent) Financial highlights Highlights EPRA NAV per share progression Strong NAV growth in H2 due to development activity and new lettings Letting activity and acquisitions have driven a substantial uplift in net rental income and EPRA earnings 150c 140c 130c +52% 130.8c 146.3c 1.45c final dividend proposed taking total for year to 2.2c 120c 110c 111.8c Net debt increased to 155.3m, LTV of 13.3% 100c 96.4c 90c Mar-14 Mar-15 Mar-16 Mar-17 Income statement ( 000) 12 months to 31-Mar months to 31-Mar-16 % change Net rental income (1) 39,681 25,389 56% Revaluation gain 103, ,056-17% Net profit 118, ,797-13% EPRA earnings (1) 14,989 5, % EPRA EPS (1) 2.2c 0.8c 193% Balance sheet ( 000) 31-Mar Mar-16 % change Portfolio value 1,167, ,656 (2) 26% Net debt 155,257 52, % Loan to value 13.3% 5.7% 133% Net assets 1,013, ,574 13% EPRA NAV per share (cent) 146.3c 130.8c 12% Dividend per share 2.2c 1.5c 47% Substantial uplift in recurring distributable income due to letting activity (1) 12 months to Mar-16 figures excl. receipt of 4.9m (FBD surrender) (2) Including capex & acquisitions 9

10 EPRA NAV cent per share EPRA NAV per share movement since 31 March 16 Strong uplift in EPRA NAV per share since 31 Mar Valuation uplift: 14.9c Cumberland (Phase 2) 9.1c 1SJRQ (1.6) Cumberland (1) 140 1WML +12% Other 5.8c 135 South Docks IFSC Traditional Core 130 Like-for-like in-place office valuation (2) : +2.8% All via ERV growth; negligible yield impact 125 Mar-16 Investment properties reval. Development properties reval. EPRA EPS Dividends paid Mar-17 (1) Cumberland Phase 1 (completed refurbishment in Sep 16) and Phase 2 (potential additional 50k sq. ft. on front site) both included in development properties for the period. From 30 Sep 16, Phase 1 is classified as investment property and Phase 2 remains as development property (2) Represents c. 440m of properties excl. Harcourt Square, 1DC, 2DC & Clanwilliam Court 10

11 EPRA earnings 000 EPRA earnings movement since 31 March 16 Significant uplift in EPRA earnings since 31 Mar 16 ( 000) 25,000 20,000 Acquisitions in in current current year year 2,380 2,380 Acquisitions in in prior prior year year 7,160 Lease Lease renewals Lease expiries & & other ( 720) 9,720 Performance fee 163 Other admin ( 4,074) 15,000 ( 3,911) ( 1,574 ) ( 290 ) 14,989 10,000 10,024 5, % +193% 5,000 ( 4,900 ) 0 Mar-16 Surrender premium New lettings on completed schemes Lease events/ acquisitions Admin costs Finance costs (net) Other (1) Mar-17 (1) Net of income received i.e. Starwood promote fee (in Other Gains & Losses ), which was net neutral for Hibernia 11

12 Committed capex 95m Substantial financial capacity in place Hedged Hedged 100m (1) 44m (2) Sources of funds IPO 372m P+OO 286m RCF 400m 44m Remaining inv. capacity excl. DB debt 150m Uses of funds Net cash invested 813m DB 1WML Debt 44m 0m 200m 400m 600m 800m 1000m 1200m Current LTV of 13.3%: if RCF fully invested, LTV would be 28% (3) (1) 100m hedged from Nov 16 to Nov 20. Hedging instruments are a combination of interest rate caps and swaptions with strike rates of 1% (reference rate is 3M Euribor) (2) Facility fully hedged per expected drawing schedule using interest rate caps with a 1% strike rate (reference rate is 3M Euribor) (3) Excl. 1WML facility 12

13 m of capital expenditure Expected LTV (%) Forecast capital expenditure and LTV (1) for committed development schemes Forecast capital expenditure by financial year committed developments Project Est. total capex m Spent at Mar-17 m (2) (2) Left to spend m 1WML 53m 34m 19m 80m 1SJRQ 58m 14m 44m Two Dockland Central 11m 1m 10m (3) 25% Hanover Building 22m - 22m 70m Total committed 144m 49m 95m 10m 60m Maintenance capex 1m 16m 18% 20% 20% 50m 1m 15% 40m 14m 13% 30m 31m 10% 20m 34m 6m 5% 10m 19m 13m 0m To Y/E March 2017 (A) Y/E March 2018 (F) Y/E March 2019 (F) 1WML 1SJRQ Hanover Building Two Dockland Central LTV (RHS) 0% (1) LTV based on valuers estimates of GDV at Mar-17 (2) Hibernia est. all in cost of 1WML on 100% basis is 77m (i.e. 24m all-in land cost (see slide 15) plus 53m total capex). Hibernia s financial accounts show that the cost of acquiring 100% of 1WML was 36m which incl. the vendor s 50% share of capex spent to date of acquisition of 13m. There was c. 28m of capex remaining (based on est. total capex of 53m) to be spent at date of acquisition. Therefore, the total cost of the project is 77m ( 36m + 28m + 13m = 77m) (3) 9.4m net of dilapidations received 13

14 Potential incremental rent roll from committed developments and rent reversion Based on CBRE estimated rental values, Mar 17 75m 72m 65m 2.9m 1.2m Hanover 2DC 64.0m 1.4m Vacant (2) space Potential incremental rent roll 55m 5.2m 1WML m +45% m +63% Total contracted rent: 48.3m (1) 6.4m 1SJRQ 45m 1DC Cumberland 35m SOBO 44.1m 2.9m 6.9m 0.4m 1.1m 2.1m 2.1m Completed developments 1WML 2DC Incremental Harcourt Square 25m 15m Contracted in-place rent roll at 31 Mar 17 Let To let Proforma Committed Vacant space (3) In-place office reversion (1,3) Total potential rent roll (3) Substantial increase in rent roll expected as developments are let and from asset management (1) Excl. Iconic Offices arrangement in Brickhouse (Clanwilliam Court, Block 1) (2) Excl. Camden St. and space occupied by Hibernia in South Dock House. Incl. vacant parking at valuers ERV (3) At valuers ERV 31 Mar 17/ Valuers ERV assumes capex of 18.2m Average office ERVs of To Let space as per CBRE Mar 17: 1SJRQ: 53.25psf (ground floor and above only) Windmill Lane: 50.70psf (excl. townhall) 2DC: 52.35psf Hanover: 47.45psf 14

15 Avg. ERV Potential development profits to come from committed schemes (1) Scheme Area post completion (sq. ft.) 1WML Office: 122k Retail/Reception: 13k 1SJRQ Office: 115k Retail/Café/Amenity: 6k Purchase price (incl. costs) ( m) Est. total capex ( m) Capex to spend at Mar-17 ( m) m ERV (2) Office (3) (To Let) psf 24m (4) 53m (4) 19m 7.3m (5) m 58m 44m 6.4m DC Office: 73k (6) 46m 11m (7) 10m 4.1m (6) Hanover Building Office: Gym: 59k 12k Total Office: 369k (6) Other: 31k Profit left to come based on valuers current yields/ervs 21m 22m (8) 22m (8) 3.0m (8) (8) 109m 144m 95m 20.8m Sensitivity of development profits to come from committed schemes (excl. Hanover) (9) Yield 5.75% 5.50% 5.30% 5.00% 4.75% 4.50% 47.50psf ( 12m) ( 4m) 3m 14m 25m 37m 50.00psf ( 3m) 6m 13m 25m 37m 49m 52.17psf 4m 13m 20m 33m 45m 58m 55.00psf 14m 23m 31m 44m 57m 71m 57.50psf 22m 32m 41m 55m 67m 82m 60.00psf 31m 41m 50m 65m 78m 93m 62.50psf 41m 51m 61m 76m 90m 104m (1) Assuming valuers estimate of GDV at Mar-17 (7) 9.4m net of dilaps (2) Per valuers ERV at Mar-17 average (8) Valuers ERV is based on assumption of capex budget of 13.8m vs. Hibernia expectation of 22m (3) Office areas ground floor and above only (9) At 31 March 2017 CBRE, the independent valuer, had an average estimated rental value for the unlet office space (4) Refer to footnote (2) on slide 13 (221,000 sq. ft.) in our three committed schemes at that point (1WML, 1SJRQ, Two Dockland Central) of 52.17psf and (5) Incl. net residential rent at valuers ERV at Mar-17 were assuming an average yield of 5.30% upon completion: based on these assumptions they expect a further c. 20m (6) 57k sq. ft. of entire 2DC (73k sq. ft.) is refurbished space. ERV for refurbished space only is 3.2m of development profit (ex. finance costs) to be realised through the completion and letting of the unlet space in these schemes. 15

16 Key financial messages Strong financial performance EPRA NAV +12% to 146.3c Lettings increasing NRI (+56% (1) to 39.7m) and contracted rent Outperformance of targets generating performance fee payments Absolute: NAV per share growth >10% 2.6m fee Relative: TPR of 14.5% vs IPD Ireland 11.2% 3.3m fee Dividend increasing as earnings rise 1.45c final dividend proposed, 2.2c for the year Building management department fully operational Small cost impact in year In future intended to be net cost neutral but expect gross up revenue by 5m- 6m: no material impact on net rental income Substantial financial capacity remains Current LTV of 13.3% Cash and undrawn facilities of 289m: 150m including committed capex and anticipated repayment of DB facility (1) Excl. 4.9m surrender premium (31% incl. surrender) 16

17 Agenda Highlights Financial results Market update Acquisitions and developments Portfolio management Conclusion and outlook 17

18 (f) 2018(F) 2019(f) 2020(f) Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Economic outlook PMIs recovering after initial softening post UK referendum Source: 50 = no change on previous month Manufacturing PMI Construction PMI Bloomberg/Markit Brexit vote, Jun-16 Services PMI No change Strong Irish employment fundamentals expected to remain with healthy core domestic demand growth forecast F 2018F Consumption 1.7% 4.5% 3.0% 2.6% 2.7% Government 5.4% 1.1% 5.3% 2.5% 2.0% Investment 18.2% 32.7% 45.5% -20.9% 5.8% Core investment* 14.4% 14.7% 2.3% 9.3% 9.9% Domestic Demand 6.2% 11.2% 16.4% -6.4% 3.6% Core Domestic Demand* 4.2% 5.4% 3.2%** 3.7% 3.7% GDP 8.5% 26.3% 5.2% 4.1% 3.3% Source: CSO, Goodbody *excl. R&D and aircraft leasing **estimate due to suppressed data on R&D and aircraft leasing by CSO in Q and Dublin continues to outperform 2.2m 2.1m 2007 peak employment = 2.2m 2012 peak unemployment = 15.2% 16% 14% 12% Dublin Rest of country Employment* (since 2010) +11% +7% 2.0m 10% New FDI Jobs** (NET, since 2010) +29k +25k 1.9m 1.8m 8% 6% 4% Office employment* (since 2010) +10% +4% Employed in same region as residence* 97% 83% Population under 40yrs old* 52% 46% Numbers in employment (LHS) Unemployment rate (RHS) Source: CSO/EY/Oxford Economics/European Commission *Source: CSO/Hibernia **Source: IDA Ireland 18

19 Q Millions Sq Ft Rental market: Dublin office dynamics Overall Dublin vacancy rate now 7.0% with the grade A vacancy rate at 3.1% in D2/4 (core CBD location) 14% 12% 10% 8% 6% 4% 2% 0% Dublin 1/3/7 Dublin 2/4 Dublin 6/8 Overall vacancy rate Source: 31 Mar 17 IFSC City Centre South Suburbs Dublin office take-up of 2.6m sq. ft. in 2016 North Suburbs Grade A vacancy rate West Suburbs 47% of take-up* is for space less than 20k sq. ft. 50k - 100k sq. ft. 16% >100k sq. ft. 12% 20k - 50k sq. ft. 25% Source: 31 Mar 17 *total gross take-up over the period Q to Q < 5k sq. ft. 13% Occupier active demand remains broad based 5k - 10k sq. ft. 17% 10k - 20k sq. ft. 17% Annual Dublin office take up 10 Year Average Undisclosed 25% Public sector 3% Financial services 14% Active Sep 16: 2.7m sq. ft. TMT 21% Other 22% Professional services 15% Source: 31 Mar 17 Source: Cushman & Wakefield/Hibernia Undisclosed 24% Public sector 4% Financial services 13% Active Mar 17: 3.8m sq. ft. TMT 24% Other 21% Professional services 14% Prime Grade A rents now 62.50psf on back of broad-based demand 19

20 Potential sq. ft. Expected Dublin office development and refurbishment supply 50% of anticipated supply in 2017 is pre-let, expecting lower completion in m 3.0m CBRE 2016 take-up = 2.6m sq. ft. 2.5m 2.0m CBRE 10yr avg. take-up = 1.9m sq. ft. 2.1m 1.5m 1.8m 1.8m 1.5m CBRE 10yr avg. CBD take-up = 1.3m sq. ft. 1.1m 1.0m 0.5m 0.2m 0.0m 2015 (A) 2016 (A) 2017 (F) 2018 (F) 2019 (F) 2020 (F) Expected year of completion Completed Under construction Probability weighted pipeline Pre-let/let Hib. all potential schemes (1) Funding constraints likely to limit speculative development Source: CBRE/Hibernia (1) non-probability weighted 20

21 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Investment market update Real estate yields attractive relative to bonds 15% 10% 5% Prime Dublin office yields Ireland 10yr Government bond yield German 10yr Government bond yield 360bps Investment volumes likely to move back towards long term trend 5.0bn 4.0bn 3.0bn 2.0bn 1.0bn Recent active funds 0% 0.0bn Q % Office Retail Mixed use Industrial Residential Other Source: CBRE/Bloomberg Mar 17 Source: Mar 17 Dublin prime office yields in a European context Highlights 7% 6% 5% 4% 3% 2% 4.65% Spread between prime Dublin office yields and government bonds remains very wide Strong demand from international investors in Irish real estate expect investment volumes to normalise Prime Dublin office yields are attractive in a European context Source: Mar 17 Investment volumes expected to return towards long term trend 21

22 Agenda Highlights Financial results Market update Acquisitions and developments Portfolio management Conclusion and outlook 22

23 Summary of committed development schemes Sector Completed schemes in 12 months to 31 Mar 17 One Dockland Central Total NIA post completion (sq. ft.) Full purchase price Capex/Est. capex Est. total cost Office ERV (incl. land) psf ERV (1) psf (1) Expected PC Date Office 74k (2) 46m 10m (3) 736psf (4) 4.0m 50.40psf Completed in May 2016 SOBO Works Office 11k 2m 1.3m 275psf 0.4m 37.10psf Completed in April Cumberland Place Office 122k (5) 51m 31m 668psf (6) 6.9m 51.05psf (7) Completed in Sept 2016 Total completed 207k 99m 42.3m (8) 11.3m Committed schemes Two Dockland Central Office 73k (9) office 46m 11m (10) 765psf (4) 4.1m 52.10psf Q WML Office 122k office 7k retail 6k reception 14 resi. units Hanover Building Office 59k office 12k gym 1SJRQ Office 115k office 5k retail CONCEPT IMAGE 1k amenity Total committed CONCEPT IMAGE 369k office 24k retail/gym 14 units 7k other 24m (11) 53m (11) 557psf (7) 7.3m (12) 51.95psf (7) mid m 22m (13) 680psf (7) 3.0m (13) 47.40psf (13) late m 58m 639psf (7) 6.4m 53.25psf mid m 144m (14) 20.8m (1) Per CBRE valuation at 31 Mar 17 (2) 58k sq. ft. refurbished out of total 74k sq. ft. (3) 7.9m net of dilapidation charge received (4) Est. total cost psf. is net of dilaps (5) Excl. additional basement areas (7.5k sq. ft.) and potential new block (c.50k sq. ft.) but incl. rentalised reception (2k sq. ft.) (6) No cost attributed to basement area (7) Office demise only (8) 40.2m net of dilapidation charge received (9) 57k sq. ft. is committed refurbishment of entire 73k sq. ft. (10) 9.4m net of dilapidations charge received (11) Refer to footnote (2) on slide 13 for workings (12) Commercial (incl. reception/townhall) and residential (13) CBRE valuation assumes capex of 13.8m vs. Company planned capex of 22m. CBRE office ERV of 47.40psf based on 13.8m capex (14) 142.4m net of dilapidations charge received 23

24 Acquisition and committed development: 1WML Acquired full control with purchase of 50% interest from Starwood in December 2016 for 33m On budget and completion date brought forward to mid-2017 Pre-let top two floors (35k sq. ft.) to Informatica on 17yr lease with 12yrs certain at rent of 2.1m ( 57.60psf) Large reception and townhall areas attracting tenants and part of focus on campus approach with surrounding four Hibernia properties 24

25 Committed development: 1SJRQ 115k sq. ft. office development on schedule for mid-2018 completion Good early tenant interest Part of SOBO campus facilities to be shared 25

26 Committed development: Two Dockland Central (formerly Guild House) Refurbishment of 57k sq. ft. in 2DC commenced in early 2017 Estimated cost of 11m ( 9.4m net of dilaps (1) ) Expected completion late 2017 Pre-let 38k of the 57k sq. ft. (67%) under refurbishment: HubSpot to occupy 32k sq. ft. (2 nd and 3 rd floors) on two separate 19yr leases (break at 10.5yr) at a rent of 52.50psf ( 1.8m p.a.) ENI to occupy 6k sq. ft. (4 th floor) on a 20yr lease (break at 12yr) at a rent of 55psf ( 0.3m p.a.) (1) Dilaps received in FY

27 Committed development: Hanover Building Hanover Building redevelopment approved Full redevelopment and extension to create 73k sq. ft.: o o 59k sq. ft. Grade A office space Large 12k sq. ft. fitness centre on ground floor for use by whole Hibernia campus Est. capex budget of 22m Expected start Q and completion late 2018 Completes Hibernia s c.400k sq. ft. SOBO campus 27

28 Development pipeline Sector Current NIA (sq. ft.) NIA post completion (sq. ft.) Full purchase price Comments Near term Cumberland Place (front block) Office 0k c.50k 0m (1) Full planning approval received from DCC Likely to be 2018 commencement CONCEPT IMAGE Total near term 0k c.50k 0m Longer term One Earlsfort Terrace Office 22k >28k 20m Planning permission is in place for two extra floors which would add c.6k sq. ft. to the NIA Potential for redevelopment as part of the wider Earlsfort Centre scheme Harcourt Square Office 117k on 1.9 acres Blks 1, 2 & 5 Clanwilliam Court and Marine House 277k 72m Potential development of 277k sq. ft. of office space and ancillary space Full planning approval received New 6yr lease granted to OPW until Dec 22 Office 135k c.190k 80m Longer term refurbishment/redevelopment opportunity Potential opportunity to add up to 40% to existing NIA across all 4 blocks Gateway Logistics/Office 14.1 acres (2) c.115k office (3) 10m Strategic transport location Full or partial redevelopment potential subject to planning Total longer term 274k 610k 182m (1) 51m (incl. costs) paid for existing block which was refurbished and completed in Sep 16. No land value attributed to new block at acquisition (2) Currently 178k sq. ft. of industrial/logistics (3) Planned new offices of c.115k sq. ft. plus potential to add a further c.130k sq. ft. of offices 28

29 Near term development: Cumberland Place (Phase 2) Full planning received for 50k sq. ft. office block in front of existing building Will take total area of Cumberland Place to c.180k sq. ft. Reception of existing building constructed with Phase 2 in mind Likely to start in 2018 once current committed schemes further de-risked 29

30 Agenda Highlights Financial results Market update Acquisitions and developments Portfolio management Conclusion and outlook 30

31 Portfolio summary 1. Dublin CBD Offices Value as at Mar 17 (all assets) Yield on Value % % uplift since % uplift since % uplift since Mar 16 Mar 16 acquisition % of portfolio excl. new acquisition (1) incl. new acquisition (1) incl. new acquisition (1) Initial Equivalent Reversionary Passing Rent ( m) Traditional Core 439m 38% 6.9% 6.8% 29.6% 4.1% 5.3% 5.7% 20.3m (2) IFSC 254m 22% 5.7% 5.7% 36.7% 3.7% 5.1% 5.3% 9.9m (5) (5) (5) (3) South Docks 177m 15% 3.1% 3.1% 31.7% 2.9% 5.3% 5.7% 6.1m (5) (5) (5) Total Dublin CBD Offices 870m 75% 5.7% 5.7% 32.0% 3.7% 5.3% 5.6% 36.3m 2. Dublin CBD Office Development (4) 168m 14% 45.8% 47.2% 86.7% 3. Dublin Residential 116m 10% 2.6% 2.6% 23.7% 4.3% 4.6% 4.6% 5.2m 4. Industrial 13m 1% 6.1% 6.1% 26.0% 6.2% 6.5% 6.8% 0.7m Total Investment Properties (incl. offices) 1,167m 100% 8.5% 9.9% 36.8% 3.8% 5.2% 5.5% 42.2m (5.6) (5,6) (5,6) Equivalent yields remain broadly stable (1) Includes capex in acquisition costs (2) Includes full value of 2DC in IFSC (even though under refurbishment) (3) Excludes the value of space occupied by Hibernia in South Dock House. Incl. full value of Hanover Building (4) 1 Cumberland Place in Traditional Core but value of site (Phase 2) in Dublin CBD Office Development (5) Harcourt Square yield is the yield on the existing building (91% of property value) (6) Excl. all CBD office developments but includes Hanover and 2DC in CBD Dublin Offices 31

32 In-place office portfolio statistics In-place office portfolio statistics Contracted rent Mar-15 Mar-16 Mar m +23% 27.3m +39% 38.0m Industry split of in-place tenants Top 10 tenants of in-place portfolio (by contracted rent) Other 4% Insurance & Reinsurance 2% Professional Services 11% TMT 32% Remainder 33% 17% 38.0m 38.0m 13% Banking & Capital Markets 24% Government Agency 27% 3% 3% 4% 4% 4% 5% 6% 8% 32

33 In-place office portfolio statistics (cont d) In-place office portfolio statistics Contracted rent ( m/ psf) ERV ( m/ psf) WAULT to review (1) (yrs) WAULT to break/expiry (yrs) % of rent upwards only (2) % of next rent review cap & collar % of rent MTM (3) at next lease event Acquired in-place office portfolio 27.8m( 37psf) 34.6m( 47psf) 3.2yrs 5.2yrs 38% 0% 62% Completed office developments (4) 10.2m( 49psf) 10.4m( 50psf) 4.4yrs 10.7yrs 0% 83% 17% Whole in-place office portfolio 38.0m( 40psf) 45.0m( 48psf) (5) 3.5yrs 6.7yrs 28% 22% 50% Pre-let committed schemes (6) 4.1m( 54psf) 4.1m( 54psf) 5.3yrs 11.6yrs 0% 8% 92% Whole office portfolio 42.1m( 41psf) 49.1m( 48psf) 3.7yrs 7.2yrs 25% 21% 54% Lettings (esp. developments) significantly extending WAULTs (1) To earlier of review or expiry (2) Incl. small amount (<1%) of CPI linked (3) Mark to Market (4) Cumberland, SOBO, 1DC (5) CBRE assume c. 18.2m capex to achieve this ERV (6) 2DC, 1WML 33

34 Office leases agreed since March 2016 Office leases agreed since Mar 16 Type Tenant Building Contracted rent m Contracted rent psf % of Group rent To expiry Term To break Notes Pre-let 1WML 2.1m 55.00psf 4% 17yrs 12yrs 57.60psf incl. townhall Pre-let Pre-let Letting Letting Two Dockland Central Two Dockland Central Cumberland House One Dockland Central 1.8m 52.50psf 4% 19yrs 11yrs Lease expected to commence: August m 55.00psf <1% 20yrs 12yrs Lease expected to commence: September m 53.85psf 4% 25yrs 11yrs Lease commenced in November m 50.00psf 3% 20yrs 11yrs Lease commenced in July 2016 Letting Central Quay 0.6m 52.50psf 1% 10yrs 3yrs Lease commenced in April 2016 Letting SOBO Works 0.4m 35.70psf (1) <1% 13yrs (2) 6yrs Lease commenced in April 2016 Letting The Chancery 0.2m 37.20psf (3) <1% 15yrs 7yrs Lease commenced in June 2016 Letting Harcourt Square 1.1m (4) 46.70psf 2% 6yrs 6yrs Deed of renunciation signed giving certainty on timing of vacant possession Rent Review Observatory 0.5m (4) 48.50psf 1% 10yrs 10yrs Jan 2017 rent review agreed at 48.50psf. Term extended by 5yrs to 2027 and break option in 2017 removed Arrangement Clanwilliam Court (Block 1) Total 10.4m 22% (1) Average: stepped rent for 4yrs (2) Weighted average. Main office lease is for 15yrs (3) Incl. mezzanine area (4) Incremental rent N/A N/A N/A See next page 34

35 Asset management: Flexible workspace arrangement Five year arrangement with Iconic Offices occupying 21k sq. ft. of Block 1, Clanwilliam Court Hibernia provides office and gets majority of rent up to 45psf Iconic manages the operation and gets majority of rent above this Gives Hibernia access to a different type of tenant and insight into a fast growing area Pictured: Iconic Offices at The Brickhouse, Clanwilliam Court (Block 1) 35

36 Agenda Highlights Financial results Market update Acquisitions and developments Portfolio management Conclusion and outlook 36

37 Conclusion and outlook Strong performance in the year and plenty still to come from development programme Positive economic backdrop in Ireland Brexit decisions on destinations likely in H2 Hibernia well positioned with clear strategy, talented team and low leverage Creating value through active management 37

38 38

39 Appendix 39

40 Location of portfolio Dublin Overview (1) Central Dublin portfolio (1) N3/M3 Blanchardstown Clondalkin N7/M7 Northwest Business Park Castleknock N4/M4 Palmerstown 3 Tallaght Ballymount The Ward M50 N2/M2 M50 Phibsborough Kimmage Dublin N81 Rathfarnham Ballymun Dublin Airport Drumcondra 1 &16 M1 Beaumont CBD Ballsbridge Dundrum Clontarf Northern Cross Blackrock M50 N11 Portmarnock Sutton North Bull Island Glenageary Howth 3 Kings Inns 6 15 St. Stephens Green Croke Park River Liffey Fairview Park 17 1 Wyckham Point 2 New Century House 3 Gateway Site 4 Montague House 5 Hardwicke House 6 Chancery Building and Chancery Apartments 7 Hanover Building 8 1WML 9 Observatory 10 Guild House (Two Dockland Central) 11 One Dockland Central 12 The Forum 13 1SJRQ 14 Cumberland House 15 Harcourt Square 16 Dundrum View 1 Wyckham Place 3 Gateway Site 16 Dundrum View Herbert Park 17 Central Quay 18 One Earlsfort Terrace 19 Marine House & Clanwilliam Court Source: Google Maps, Visit Dublin, Jones Lang LaSalle (1) Property assets > 5m in value as at 31 Mar &16 Key: Office Residential Industrial Office development 40

41 Summary financial statements Balance sheet highlights ( in thousands) 31-Mar Mar-16 Investment property (1) 1,167, ,656 Assets held for sale 385 3,921 Other non current assets 13,604 14,977 Cash and cash equivalents 18,148 23,187 Trade and other receivables 10,108 18,880 Gross assets 1,209, ,621 Current liabilities (24,642) (19,323) Financial liabilities (171,138) (72,724) Net assets 1,013, ,574 Equity share capital 678, ,398 Retained earnings 346, ,172 Dividends paid (20,755) (10,132) Other reserves 9,759 6,136 Total equity 1,013, ,574 IFRS NAV per share (cents) Diluted IFRS NAV per share (cents) EPRA NAV per share (cents) Summary income statement ( in thousands) 12 mths to 31-Mar mths to 31-Mar-16 (2) Revenue 46,372 32,786 Rental income 42,519 32,786 Direct property costs (2,838) (2,497) Property Income 39,681 30,289 Performance related fees (8,215) (6,069) Administrative expenses (12,770) (8,696) Net finance (costs) (5,661) (4,087) Net rental profit 13,035 11,437 Revaluation/other income: Investment properties 103, ,056 Other income/ (costs) (3) 2,476 (171) Tax (expense)/ credit (450) 475 Total revaluation/other income: 105, ,360 Profit for the financial period 118, ,797 Diluted IFRS EPS (cents) EPRA Earnings 14,989 10,024 EPRA EPS (cents) (1) Prior year figures incl. 50% interest in Windmill Lane only (2) Figures inclusive of surrender premium ( 4.9m) (3) Profits arising on disposal of non-core properties, development management & promote fees earned and fair value movements on shares issued 41

42 Potential sq. ft. Expected Dublin office development and refurbishment supply Estimated development/refurbishment pipeline 3.5m 3.0m CBRE 2016 take-up = 2.6m sq. ft. 3.0m 2.7m 2.6m 3.2m 2.5m 2.4m 2.0m 1.5m CBRE 10yr avg. take-up = 1.9m sq. ft. CBRE 10yr avg. CBD take-up = 1.3m sq. ft. 1.6m 1.8m 2.1m 1.7m 1.6m 1.3m 1.1m 1.1m 1.0m 0.5m 0.0m Mar 16 Sep Mar 16 Sep Mar 16 Sep 16 Expected year of completion Mar 16 Sep not 2020 not 2020 analysed analysed at Mar 16 at Sep 16 Completed Under Construction Planning Granted Planning Applied Pre-Planning Pre-let Source: Hibernia/CBRE estimates 42

43 Contracted Rent Schedule of rent reviews (1) for in-place office tenants To earlier of rent review or lease expiry Current in-place office contracted rent: 38.0m 12.0m Valuers' 31 Mar m Avg. rent: 47psf 8.0m 6.0m Avg. rent: 30psf Avg. rent: 34psf 4.0m Avg. rent: 25psf Avg. rent: 38psf Avg. rent: 47psf Avg. rent: 52psf 2.0m Avg. rent: 44psf Avg. rent: 26psf Avg. rent: 31psf 0m Six months ended Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Weighted average period to rent review or lease expiry of 3.2yrs excl. completed developments (2) (1) To earlier of rent review or lease expiry. Excludes various parking licenses, retail space in office buildings, Parkrite in the Forum/Clanwilliam, Crossfit, Roof Antenna & AIB ATM. Also excludes any rent review dates or expiries prior to Mar 17 (2) i.e. the acquired in-place office portfolio (3) Note: Harcourt Square lease ( 6.1m) expiry in Dec-2022 (y/e Mar-23) is excluded from the chart as well as current rent reviews 43