Hibernia REIT PLC Hibernia REIT plc Trading Update (9530L)
25 July 2017 - 4:01PM
UK Regulatory
TIDMHBRN
RNS Number : 9530L
Hibernia REIT PLC
25 July 2017
Hibernia REIT plc Trading Update
25 July 2017
Hibernia REIT plc ("Hibernia") issues a trading update relating
to the period from 1 April 2017 to date, in advance of its Annual
General Meeting being held at 11.30am today.
Highlights
-- Dublin office take-up over 1.6m sq. ft. in H1 2017 following
very strong leasing activity in Q2
-- Practical completion at 1 Windmill Lane ("1WML") expected in August 2017
-- Two Dockland Central and 1 Sir John Rogerson's Quay ("1SJRQ")
developments both remain on schedule and Hanover Building
redevelopment due to commence shortly
-- Hibernia in-place office portfolio vacancy rate below 3%:
various parties interested in the majority of the remaining vacant
space
Occupational market update
Office leasing activity in the quarter ended June 2017 was
exceptionally high at over 1.0m sq. ft., bringing take-up for the
first half of 2017 to over 1.6m sq. ft. and reducing Dublin office
vacancy rates to 6.5% overall and to 2.0% for Grade A space in
Dublin 2/4. Encouragingly, there was a further 1.0m sq. ft. of
office accommodation reserved as at 30 June 2017. Prime Grade A
headline rents remained at EUR62.50 (source: CBRE).
Developments and refurbishments
1WML is now close to practical completion, which is expected to
occur on schedule in August 2017. 29% of the building was pre-let
to Informatica in March and discussions are on-going with a number
of parties regarding additional potential lettings. Associated
works on the surrounding streetscape are also expected to be
substantially completed in August.
Two Dockland Central and 1SJRQ remain on track for their
expected delivery dates in late 2017 and mid-2018, respectively,
and in both cases discussions continue with potential tenants. As
announced in May, following further pre-lets to HubSpot and ENI,
Two Dockland Central is now c.75% let.
Work on the redevelopment of the Hanover Building is expected to
commence on site shortly with scheduled completion in late 2018:
the building is to be re-named 2 Windmill Lane ("2WML"). We are
also working on our plans for the projects in our development
pipeline (e.g. Cumberland Phase 2, Gateway, Clanwilliam Court,
Harcourt Square).
Asset management
The vacancy rate in our in-place office portfolio is below 3%
and discussions are on-going with various parties regarding the
majority of the remaining vacant space in the portfolio.
The flexible workspace arrangement with Iconic Offices
("Iconic") in 21,000 sq. ft. in Clanwilliam Court continues to
perform well, with over 85% of the workstations and over 70% of the
available co-working memberships contracted as at the end of June
2017, significantly ahead of budgeted performance.
Balance sheet
At 30 June 2017 Hibernia had net debt of EUR167m and cash and
undrawn facilities of EUR277m. Net of committed development spend,
anticipated repayment of the 1WML loan facility and the upcoming
final dividend payment, cash and undrawn facilities totalled
EUR140m.
Kevin Nowlan, Chief Executive Officer of Hibernia, said:
"We continue to make good progress with our committed
development schemes and 1 Windmill Lane is now close to
completion.
"The quarter ended June 2017 saw a large amount of office
leasing activity in Dublin, bringing take-up for the first half of
the year to more than 1.6m sq. ft., and we are seeing good levels
of tenant interest for the available space within our
portfolio.
"With an exciting pipeline of developments, a well-capitalised
balance sheet and a talented team we remain optimistic for the
future."
ENDS
Contacts:
Hibernia REIT plc +353 1 536 9100
Kevin Nowlan, Chief Executive Officer
Tom Edwards-Moss, Chief Financial Officer
Murray Consultants
Doug Keatinge: +353 86 037 4163,
dkeatinge@murrayconsultants.ie
Jill Farrelly: +353 87 738 6608,
jfarrelly@murrayconsultants.ie
About Hibernia REIT plc
Hibernia REIT plc is an Irish Real Estate Investment Trust
("REIT"), listed on the Irish and London Stock Exchanges, which
owns and develops Irish property. All of Hibernia's portfolio of
properties is in Dublin and it specialises in city centre
offices.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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