Hibernia REIT plc (HBRN)
Hibernia REIT plc Trading Update
Ahead of its Annual General Meeting being held at noon today, Hibernia REIT plc ("Hibernia" or the "Group") issues a trading update relating to the period from 1 April 2021 to date.
Highlights
Market update Ireland remains on track to have fully vaccinated its adult population in the coming weeks and many employers are planning to re-open their offices in September. Occupier activity has picked up as COVID restrictions have eased and since building inspections were allowed again from May 2021. This is yet to be reflected in Dublin office take-up, with 0.2m sq. ft. leased in the second quarter (Q2 2020: 0.1m sq. ft.), representing almost the entirety of take-up in the first half of 2021 of 0.2m sq. ft. (H1 2020: 0.9m sq. ft.). The vacancy rate for Grade A office space in Dublin's city centre rose from 9.8% to 10.9% in the quarter ended June 2021 and the overall Dublin office vacancy rate increased from 9.9% to 10.6%. The majority of this increase was due to the completion of new office developments. Prime Grade A office headline rents in the city centre remained unchanged at €57.50 per sq. ft. in the quarter (source: Knight Frank). Investment transaction volumes have continued to recover, totalling €2.8bn in the first half of 2021 (H1 2020: €1.1bn), of which of €1.5bn occurred in the second quarter (Q2 2020: €0.4bn), and heading into the second half of the year agents are reporting a good pipeline of prospective deals. Yields for prime offices in central Dublin remain around 4% (source: Knight Frank). Residential tenants[2]
Developments and refurbishments 2 Cumberland Place, our 58,000 sq. ft. office development scheme, reached practical completion in late July 2021 and the long lease to 3M of 24,000 sq. ft. is expected to commence in August 2021. The refurbishment of 50 City Quay, a 4,500 sq. ft. office building in our Windmill Quarter, is due to complete imminently. As announced separately today, we have agreed non-binding heads of terms for a pre-let of the majority of our 337,000 sq. ft. development at Harcourt Square for the long-term. There is no certainty an agreement for lease will be concluded.
"It has been encouraging to see investor and occupier activity picking up, though this is yet to be reflected in take-up figures. Visibility on the pace and shape of the economic recovery remains low but we are well-positioned with a clear strategy, low leverage and a high-quality tenant base. We continue to focus on preparing our exciting major office developments for commencement in the near term and the potential pre-let at Harcourt Square announced this morning is an important step in this regard."
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@murraygroup.ie Andrew Smith: +353 83 076 5717, asmith@murraygroup.ie About Hibernia REIT plc Hibernia REIT plc is an Irish Real Estate Investment Trust ("REIT"), listed on Euronext Dublin and the London Stock Exchange. Hibernia owns and develops property and specialises in Dublin city centre offices. [1] Approximately 90% of Group contracted rent per annum [2] Approximately 10% of Group contracted rent per annum [3] The space in 2 Cumberland Place let to 3M is not included in the vacancy rate. Including Marine House & Clanwilliam Court, where leases are being allowed to expire for redevelopment, the vacancy rate is 11% [4] Including Marine House & Clanwilliam Court the vacancy rate at 31 March 2021 was 9% |
ISIN: | IE00BGHQ1986 |
Category Code: | TST |
TIDM: | HBRN |
LEI Code: | 635400MHRA4QVVFTON18 |
Sequence No.: | 118518 |
EQS News ID: | 1221783 |
End of Announcement | EQS News Service |
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