Preliminary Results May 2018

Transcription

1 Preliminary Results May 2018

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, Windmill Quarter 2

3 Agenda Highlights Financial results Market update Disposals and acquisitions Developments Portfolio management Conclusion and outlook 3

4 Results summary 12 months to Mar months to Mar-17 Portfolio value (1) Excluding stamp duty increase (1,2) +6.6% +10.9% +9.9% Total property return ( TPR ) (3) TPR vs. IPD Ireland Index +11.6% +4.8% +14.5% +3.3% EPRA NAV per share Excluding stamp duty increase (2) +8.7% +14.0% +11.9% EPRA earnings +29.4% % (1) Like-for-like change (excl. finance costs) (2) Stamp duty on commercial property transactions increased from 2% to 6% in Budget 2018 effective 11 Oct 17 (3) Excl. acquisition costs 4

5 Business highlights Development programme delivering and pipeline bolstered Two schemes completed, delivering 197k sq.ft. and profit on cost of >65% (1) Three committed schemes delivering 222k sq. ft., mainly in 2018 Longer term pipeline schemes progressing Acquisition of further land at Gateway Income and WAULT increasing due to new lettings and rent reviews Contracted rent roll of 56.0m (2), +16% since Mar-17 and +13% in H2 Letting of committed developments expected to add c. 13m (3) Acquired in-place offices reversionary potential c. 6m (3) (avg. 2.6yrs to review/expiry) WAULT to break/expiry of in-place offices now 7.3yrs, +9% since Mar-17 and +6% in H2 Disciplined and profitable recycling of capital Three smaller assets sold in H2 for 35.8m, in aggregate 21% ahead of Sept-17 valuation Acquisitions totalling 39.1m, enhancing portfolio Financial strength to fund further investment Net debt of 203m (4), LTV 15.5% Cash and undrawn facilities net of commitments of 120m Dividend growing as income increases 1.9c final dividend proposed taking dividend for year to 3.0c, +36% on prior year (1) At practical completion (2) Contracted rent incl. net residential rent and excl. Iconic Offices arrangement in Clanwilliam (3) At valuers ERV at 31 March 2018 (4) Excl. cash held relating to tenant deposits and service charge accounts 5

6 Looking ahead Strong occupier demand in Dublin for offices and residential accommodation Broad-based Irish economic growth and favourable demographics FDI and latent Brexit also contributing Limited new supply in both office and residential sectors More to come from portfolio in near term 172k sq. ft. of new offices on track for delivery in 2018, completing Windmill Quarter 50k sq. ft. office scheme at Cumberland Place now committed, expected completion in H % reversionary potential within acquired in-place portfolio and average 2.6 years to review/expiry Substantial longer term development pipeline Three office schemes adding up to 227k sq. ft. of incremental new office space Potential for mixed-use scheme at Gateway Expect recycling of capital to continue Hibernia well positioned Clear strategy and talented team Cash and undrawn facilities of 120m (1) (1) Net of committed capex 6

7 Agenda Highlights Financial results Market update Disposals and acquisitions Developments Portfolio management Conclusion and outlook 7

8 Financial highlights Balance sheet Mar-18 Mar-17 Change Portfolio value 1,308.7m 1,167.4m +6.6% Net debt 202.7m 155.3m +30.5% Loan to value 15.5% 13.3% +16.5% Net assets 1,111.7m 1,013.9m +9.6% EPRA NAV per share 159.1c 146.3c +8.7% (1) Income statement Mar-18 Mar-17 Change Net rental income 45.7m 39.7m +15.1% Revaluation and disposal gain 87.8m 103.5m (15.2%) Net profit 107.1m 118.6m (9.7%) EPRA earnings 19.4m 15.0m +29.4% EPRA EPS 2.8c 2.2c +27.3% Full year dividend per share 3.0c 2.2c +36.4% (1) Like-for-like change (excl. finance costs) 8

9 EPRA NAV cent per share EPRA NAV per share movement in since 31 March 17 Strong uplift in EPRA NAV per share in year to Mar-18 despite stamp duty impact c 165 Valuation uplift: 19.3c 8.1c 1WML 0.9c (2.5c) 160 1SJRQ 159.1c 11.2c (7.7c) 155 IFSC South Docks 2WML +9% 150 Traditional Core 146.3c Other (1) 145 Like-for-like in-place office valuation: +5.7% (2,3) (c.100% yield impact) 140 Mar-17 Investment properties reval. Development properties reval. Disposal gains EPRA earnings Dividends paid Est. stamp duty impact Mar-18 (1) Residential/Gateway (incl. land) (2) 5.7% excluding stamp duty increase impact. 1.8% including impact of stamp duty increase (3) Represents c. 30m of the net property valuation uplift in the period excluding the impact of the stamp duty increase (c. 10m including impact of stamp duty increase). Excl. 2DC, Clanwilliam, Marine & Harcourt on the basis that capex was spent on the property or the valuation assumptions changed during the period 9

10 EPRA earnings m EPRA earnings movement since 31 March 17 Uplift in EPRA earnings since 31 March m Developments completed in prior year 1WML 2DC 3.7m 2.5m ( 0.4m) 0.9m Promote fees paid (1) Performance related pay Other admin 2.3m ( 0.7m) ( 0.7m) 20m 5.8m 0.2m ( 0.6m) 19.4m ( 1.9m) 15m 15.0m +29% 10m Acquisitions & disposals 0.8m New lettings & rent reviews 1.7m Promote fees (net of tax) (1) ( 2.3m) Lease expiries & other ( 2.3m) Other losses 0.4m 5m 0m Mar-17 New lettings on completed developments In-place lease events/acquisitions Admin costs Finance costs (net) Other Mar-18 (1) Promote fee received and paid in prior year related to Windmill Lane joint venture 10

11 NRI ( m) Per share (c) Growth in distributable income Net rental income growth EPRA EPS and dividend growth % increase in NRI in last three years 3.5 Interim DPS Final DPS EPRA EPS m 45.7m m m FY15 FY16 FY17 FY FY15 FY16 FY17 FY18 Growing rental income driving increases in dividend: expect 85%-90% payout in future 11

12 Net debt ( m) LTV (%) Debt capacity ( m) Substantial financial capacity in place Financial capacity 400 New interest rate hedging put in place in Sep-17, taking total hedged from 144m to 244m (all at 1% Euribor) 350 Remaining inv. capacity 120m LTV 27% (1) RCF used to repay secured facility on 1WML in Feb-18: total repayment 17.5m 300 Looking at options to diversify debt sources and maturity dates RCF 400m Nov- 20 maturity 205bps margin Floating charge Hedged 244m Committed capex 77m Net debt 203m LTV 20% (1) LTV 16% Net debt and LTV progression m m 181m 203m 20% 15% 10% 5% 53m 0 Facility Drawings 0 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 0% Through-cycle LTV target remains 20-30% (1) Forecast LTV based on valuers estimates of GDV at Mar-18 12

13 m of capital expenditure Forecast capital expenditure and LTV (1) for committed development schemes LTV (%) Forecast capital expenditure by financial year committed developments 70 25% 60 6m 20% 20% m 7m 4m 18m 16% 2m 18m 19% Est. total Spent at Left to Project capex Mar-18 spend (2) 1WML 53m 49m 4m Two Dockland Central (3) 11m 9m 2m 1SJRQ 58m 31m 27m 2WML 22m 4m 18m Cumberland Place Ph. 2 27m 1m 26m Total committed 171m 94m 77m Maintenance capex 3m Completed scheme 15% 10% 20 27m 5% 10 15m 20m 0 4m Y/E March 2018 (A) Y/E March 2019 (F) Y/E March 2020 (F) 0% 1WML 1SJRQ 2WML Two Dockland Central Cumberland Phase 2 LTV (RHS) (1) Forecast LTV based on valuers estimates of GDV at Mar-18 (2) Hibernia est. all in cost of 1WML on 100% basis is 78m (i.e. 25m all-in land cost plus 53m total capex). In the prior year, Hibernia s financial accounts show that the cost of acquiring 100% of 1WML was 37m which included the vendor s 50% share of the capex spent to the 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 78m ( 37m + 28m + 13m = 78m) (3) 9.4m net of dilapidations received 13

14 Rent m Potential incremental rent roll from committed developments and rent reversion Based on Cushman & Wakefield (C&W) estimated rental values, Mar m Cumberland Place Phase m m (1) 1.7m (2) 5.7m Potential incremental rent roll c. 6.0m (3) 63.7m + 7.7m +14% 3.4m 6.6m 2WML 1SJRQ m +36% m 1WML 0.3m currently under review m 2DC m from rent reviews m 30 Contracted rent roll at 31 Mar 18 Vacant unlet Reversion Investment pro-forma Committed developments Total potential rent roll Significant uplift in rent roll expected from reversion and committed schemes (1) Excl. Iconic Offices arrangement in Brickhouse (Clanwilliam Court, Block 1). Incl. net residential rent (2) Excl. Camden St. and space occupied by Hibernia in South Dock House. Incl. vacant parking at valuers ERV (3) At valuers 31 Mar 18 Average office ERVs of development space as per Mar 18: 1SJRQ: 56.19psf (ground floor and above only) 2WML: 53.00psf (office only) Cumberland Ph. 2: 54.48psf (office only) 14

15 Avg. ERV Potential profits to come from committed schemes (1) Scheme 1SJRQ 2WML Cumberland Place Phase 2 Total Office: Retail/Café/Amenity: Office: Gym: Area post completion (sq. ft.) 112k 8k 60k 12k Purchase price (incl. costs) ( m) Est. total capex ( m) Capex to spend at Mar-18 ( m) m ERV (2) Office (3) (To Let) psf 18m 58m 26m 6.6m m 22m 18m 3.4m Office: 50k 0m 27m 26m 2.7m Office: Other: 222k 20k 39m 107m 70m 12.7m Sensitivity of development profits to come from committed schemes (4) Yield 5.25% 5.00% 4.87% 4.75% 4.50% 4.25% 4.00% 50.00psf ( 16m) ( 6m) 0m 5m 18m 32m 47m 52.50psf ( 7m) 4m 9m 15m 28m 43m 59m 54.94psf 2m 13m 19m 25m 39m 54m 71m 57.50psf 11m 23m 29m 36m 50m 66m 84m 60.00psf 20m 32m 39m 46m 61m 77m 96m 62.50psf 30m 42m 49m 56m 71m 89m 108m Profit left to come based on valuers current yields/ervs (1) Assuming valuers estimate of GDV at March 18 (2) Per valuers ERV at March 18 average (3) Office areas only (4) At 31 March 18 C&W, the independent valuer, had an average estimated rental value for the unlet office space (222,000 sq. ft.) in 1SJRQ, 2WML and Cumberland Place Phase 2 of 54.94psf and were assuming an average yield of 4.87% upon completion: based on these assumptions they expect a further c. 19m 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 performance, delivering returns above Dublin market EPRA NAVPS +8.7% to 159.1c TPR of 11.6% vs IPD Ireland Index of 6.8% Profitable recycling of capital delivered gain of 1.2c (1) performance fee of 6.6m Transition to fully internalised cost structure in coming year Five year IMA expires in Nov-18 New remuneration structure to be voted on by shareholders at AGM Dividend increasing as earnings rise 1.9c final dividend proposed (+31%), 3.0c for the year (+36%) Expect 85%-90% payout in future Substantial financial capacity LTV of 15.5%, cash and undrawn facilities of 120m (2) Looking at options to broaden funding and extend maturities Through-cycle LTV target remains 20-30% Developments and asset management likely to remain the key drivers of future valuation gains (1) Including gains on acquisitions and sales over carrying value at date of sale (2) Net of committed capex 16

17 Agenda Highlights Financial results Market update Disposals and acquisitions Developments Portfolio management Conclusion and outlook 17

18 Change in employment ('000) Population (rebased to 100) f 2019f 2020f 2021f 2022f 2023f 2024f 2025f Population (rebased to 100) Economic outlook Favourable Irish demographics and robust Irish economic growth expectations % IRE population under 35yrs of age 39% EU population under 35yrs of age Source: European Commission, 2000=100 Ireland rebalancing towards service based employment Source: CSO: Q to Q IRE SWE UK AT ES FR NL EU IT GER PT Source: CSO, Goodbody *excl. R&D and aircraft leasing f 2018f 2019f Consumption 2.0% 4.2% 3.3% 2.2% 3.1% 2.8% Investment 18.1% 27.9% 61.2% -19.5% 5.9% 4.8% Core Investment* 13.4% 10.8% 13.6% 5.2% 10.5% 7.9% Government 4.8% 1.8% 5.3% 2.2% 2.0% 2.5% Domestic Demand 6.3% 10.1% 21.4% -6.7% 3.9% 3.5% Core Domestic Demand* 4.2% 4.8% 5.4% 2.8% 4.3% 3.7% GDP 8.3% 25.6% 5.1% 8.1% 3.1% 3.1%...but labour remains competitive* in international context *labour costs (compensation of employees plus taxes minus subsidies) in the following sectors: financial & insurance, real estate, scientific & technical and administrative & support activities Source: European Commission; Q to Q4 2017, Q4 2007=100 AT GER SWE EU UK FR IT ES NL IRE PT 18

19 Vacancy rate (%) Q Millions Sq Ft Dublin office rental market 2017 a record year for take-up in Dublin Majority of take-up* remains for space less than 50k sq. ft >100k sq. ft. 17% 50k sq. ft k sq. ft. 15% <5k sq. ft. 12% 5k sq. ft. to 10k sq. ft. 16% Source: Knight 31 Mar 18 Annual Dublin office take up 10 Year Average Overall Dublin vacancy rate now 6.2% with the Grade A vacancy rate at 3.9% in Dublin city centre 20k sq. ft. to 50k sq. ft. 24% 10k sq. ft. to 20k sq. ft. 16% Source: Knight 31 Mar 18 *gross take-up since Q1 2011; 68% of gross take-up since Q is for space <50k sq. ft. High levels of active demand % 3.6% 3.9% 4.3% City centre Fringe South suburbs Overall vacancy rate Source: Knight 31 Mar % 6.7% 5.6% 5.7% North suburbs 14.1% 11.7% West suburbs Grade A vacancy rate 6.2% 5.4% Overall Dublin Source: Undisclosed 24% Public sector 4% Financial services 13% Active Mar 17: 3.8m sq. ft. TMT 24% Other 21% Cushman & Wakefield/Hibernia Professional services 14% Undisclosed 33% Financial services 8% Other 13% Active Mar 18: 5.8m sq. ft. Despite the large lettings completed in 2017, the majority continue to be less than 50k sq. ft. Public sector 5% Professional services 10% TMT 31% 19

20 Potential sq. ft. Potential sq. ft. Expected Dublin office development and refurbishment supply pipeline Dublin CBD office development pipeline 4.0m 3.5m Total Dublin office development pipeline (incl. suburbs) 4.0m 3.5m Knight Frank 2017 take-up = 3.6m sq. ft. 3.0m 3.0m 2.5m 2.0m 1.5m 1.0m Knight Frank 2017 CBD take-up = 2.2m sq. ft. Knight Frank 10yr avg. CBD take-up = 1.1m sq. ft. 1.0m 0.9m 1.8m 1SJRQ: 2WML: 112k sq. ft. 60k sq. ft. 1.1m 1.8m 2.5m 2.0m 1.5m 1.0m Knight Frank 10yr avg. take-up = 2.1m sq. ft. 1.1m 1.4m 2.3m 1.7m 2.0m 1.4m 0.5m 0.2m 0.5m 0.5m 0.2m 0.0m 2015 (A) 2016 (A) 2017 (A) 2018 (F) 2019 (F) Expected year of completion 2020 (F) 2021 (F) 0.0m 2015 (A) 2016 (A) 2017 (A) 2018 (F) 2019 (F) Expected year of completion 2020 (F) 2021 (F) Completed Under construction Probability weighted pipeline Pre-let/let All potential schemes City centre development remains stable: suburban supply may increase Source: Knight Frank/Hibernia 20

21 Volumes ( bn) Dublin investment market Yields tightening in Dublin office and residential * Mar 18 vs Mar 17 Source: (1) Knight Mar 18; (2) Mar 18 Change yoy* Mar-17 Sep-17 Mar-18 bps % Office (1) Prime 4.50% 4.25% 4.00% -50bps 12.50% Secondary asset; prime location 5.00% 4.88% 4.75% -25bps 5.26% Secondary asset; secondary location 6.00% 5.75% 5.50% -50bps 9.09% Residential (2) Prime (% net) 4.80% 4.50% 4.25% -55bps 12.94% Industrial (2) Prime 5.50% 5.50% 5.50% - - Investment volumes trending down towards long run avgs. Source: Q Office Retail Mixed use Industrial Residential Other CBRE to Dec-16; Knight Frank post Dec-16 65% of households <35yrs of age are renting Top 15 lettings: c.50% of total take-up in 2017 was TMT 4% over 65 9% 87% 3% 55 to 64 15% 81% 45 to 54 4% 21% 75% 35 to 44 5% 35% Other 61% 8% Rented under 35 27% 65% Owner 0% 20% 40% 60% 80% 100% Source: CSO Tenant Industry Take-up (sq. ft.) 1 Microsoft TMT 300k (1) 2 Indeed TMT 211k 3 LinkedIn TMT 175k 4 Facebook TMT 170k 5 AIB Financial services 158k 6 LinkedIn TMT 152k 7 Department of Health Public sector 143k 8 J.P Morgan Financial services 128k (1) 9 AIB Financial services 115k 10 WeWork Co-working 90k 11 Fleetmatics TMT 75k 12 Avolon Financial services 67k 13 NTMA Public sector 61k 14 Delphi TMT 58k 15 Zendesk TMT 56k Total 1,959k (1) Owner occupied Source: Knight Mar 18 Competition for assets has led to further yield compression, particularly for prime assets 21

22 Agenda Highlights Financial results Market update Disposals and acquisitions Developments Portfolio management Conclusion and outlook 22

23 Disposals Chancery, D8 Hanover Street East & 11a Lime Street, South Docks Samuel Beckett Bridge 11a Lime Street Hanover St. East Sale price: 23.8m (office capital value of 645psf) Sale price: 12m Disposal date: December 2017 Disposal date: February 2018 Asset details: 35k sq. ft. office and 4 apartments Asset details: 13k sq. ft. office (with p.p. for 20k sq. ft.) and a house Investment period: Asset management: 3.5 years Increased WAULT on offices from 2 to 8 years Returns: IRR 17% Sale price was >1.3% ahead of Sep-17 valuation Sale rationale: Completed all material asset management events for the medium term Investment period: 3.0 years Returns: IRR 40% Sale price was >95% ahead of Sep-17 valuation Sale rationale: The price received gave the majority of any development upside with no risk 23

24 Acquisition 77 Sir John Rogerson s Quay 34k sq. ft. South Docks office building acquired for 30.7m (incl. costs) in February 2018 Simultaneously let to IWG plc on a 25-year lease, with 15 year term-certain and 9 month rent-free Rent of 1.8m p.a. ( 50psf) achieved, giving an NIY of 5.8% (rising to 6.3% post-fixed uplift in year 5) 12% valuation uplift since acquisition (incl. costs) Inset: 77SJRQ Location St. Stephens Green South Docks River Liffey 77 24

25 Agenda Highlights Financial results Market update Disposals and acquisitions Developments Portfolio management Conclusion and outlook 25

26 Summary of committed development schemes Sector Total area post completion (sq. ft.) Schemes completed in 12 months to 31 March 18 1WML Office 124k office 8k retail (2) 7k reception 14 resi. units Full purchase price Capex/Est. capex Est. total cost (incl. land) psf ERV (1) Office ERV psf (1) Expected PC Date 25m (3) 53m (3) 554psf (4) 7.6m (5) 52.59psf (4) Completed Aug 2017 Delivered profit on cost of >80% (6) Now 96% let Two Dockland Central Total completed Office 73k (7) office 46m 11m (8) 760psf (9) 4.1m 52.37psf (10) Completed Nov 2017 Delivered profit on cost >35% (6) Now fully let 197k office 71m 64m (11) 11.7m 8k retail (2) 7k reception 14 resi. units Committed schemes 2WML Office 60k office 12k gym 21m 22m 678psf (4) 3.4m 53.00psf Q SJRQ Office 112k office 8k food & beverage 18m 58m 639psf (4) 6.6m 56.19psf Q Cumberland Place Phase 2 Office 50k office 0m 27m 540psf (4) 2.7m 54.48psf H Total committed 222k office 20k retail/gym 39m 107m 12.7m (1) Per C&W valuation at 31 March 18 (2) Incl. 1k sq. ft. basement store (3) Refer to footnote (2) on slide 13 (4) Office demise only (5) Commercial (incl. reception/townhall) and net residential (6) Assuming 6% stamp duty and no finance Sep-17 values (7) 57k sq. ft. is completed refurbishment of entire 73k sq. ft. (8) 9.4m net of dilapidations received (9) Est. total cost psf is net of dilaps (10) For entire 73k sq. ft. (11) 62.4m net of dilapidations received 26

27 Committed developments Windmill Quarter: 1SJRQ & 2WML Windmill Quarter will complete with delivery of 1SJRQ and 2WML in H Comprises c.400,000 sq. ft. of office space plus gym, retail (food & beverage) and residential units across five buildings 3 Focus on communal space, centred around Townhall in 1WML, proving popular with tenants First example of clustering: potential to repeat in Clanwilliam and Harcourt redevelopments 4 1 Windmill Quarter: Hibernia-owned properties 1. 1SJRQ 3. 2WML 2. 1WML & 4. Observatory Inset: 1WML Townhall Hanover Mills 27

28 Committed development Cumberland Place Phase 2 Commencement of Cumberland Place Phase 2 development approved by Board in May 2018 Will deliver 50k sq. ft. of Grade A office space, with potential to interlink with existing building Estimated capex budget 27m Expected construction start Q and completion H

29 Development pipeline Sector Current area (sq. ft.) Area post completion (sq. ft.) Full purchase price Comments Longer term offices Blocks 1, 2, & 5 Clanwilliam Court and Marine House Office 139k 200k 80m Refurbishment/redevelopment opportunity post 2020/2021 Potential to add significantly to existing NIA across all four blocks and create an office cluster similar to Windmill Quarter Have applied for planning to refurbish Marine House Harcourt Square Office 117k on 1.9 acres 277k 72m Lease to OPW until Dec 2022 Site offers potential to create cluster of office buildings and shared facilities Planning in place for 277k sq. ft. redevelopment Seeking revised planning for up to 322k. sq. ft. One Earlsfort Terrace Office 22k >28k 20m Current planning permission for two extra floors Also potential for redevelopment as part of wider Earlsfort Centre scheme Total longer term offices 278k >505k 172m Mixed use Gateway & Gateway Lands 45.4 acres (1) Unclear 17m Strategic transport location Potential for future mixed-use redevelopment Have applied for planning for new access road Total mixed use 45.4 acres (1) Unclear 17m (1) Currently 178k sq. ft. of industrial/logistics on 14.1 acres & 31.3 acres of agricultural land 29

30 Longer term development: Gateway Lands N7 Gateway Lands Gateway Proposed new road layout 20 mins Hibernia now owns 45.4 acres at Newlands in South Dublin (cost 17m) 14.1 acre Gateway site (zoned enterprise ) 31.3 acres of adjacent land (zoned agricultural ) Area has excellent transport links <30 minutes on Luas to city centre and <20 minutes to new children s hospital Have applied for planning for new road across Gateway site to gain access to the M50 and N7 Longer term potential to change use Park & Ride City Centre <30 mins

31 Agenda Highlights Financial results Market update Disposals and acquisitions Developments Portfolio management Conclusion and outlook 31

32 Portfolio summary 1. Dublin CBD Offices Value as at Mar-18 (all assets) % uplift since % uplift since Yield on Value % Mar 17 Mar 17 % of portfolio excl. new acquisitions (1) incl. new acquisitions (1) Initial Equivalent Reversionary (2) Passing Rent ( m) (3) (3) (3) Traditional Core 436m 33% 3.7% 3.6% 4.8% 5.3% 5.5% 21.6m IFSC 261m 20% (0.1%) (0.1%) 4.3% 5.1% 5.2% 12.2m (4) South Docks 322m 25% 9.8% 9.9% 2.7% 4.8% 5.0% 10.1m (3) (3) (3) Total Dublin CBD Offices 1,019m 78% 4.3% 4.5% 4.0% 5.1% 5.3% 43.9m (5) 2. Dublin CBD Office Development 134m 10% 19.8% 19.8% (6) (7) (7) (7) 3. Dublin Residential 138m 11% 13.4% 13.3% 3.8% 4.2% 4.2% 5.6m (10) (8) (8) 4. Industrial 18m 1% (3.7%) (8.7%) 3.7% 3.7% 3.7% 0.7m Total Investment Properties (incl. offices) (3,7,9) (3,7,9) (3,7,9) 1,309m 100% 6.6% 6.6% 4.0% 5.0% 5.1% 50.2m (10) Yield tightening since March 2017 focused on prime assets (1) Includes capex (7) These are the net yields assuming 80% net-to-gross. C&W has valued Wyckham Point, Dundrum View, (2) Yields on unsmoothed values and excluding the adjustment for South Dock House owner-occupied space Cannon Place & 1WML residential on a gross yield basis ex acquisition costs: gross initial yield is 4.9% (3) Harcourt Square yield is the yield on the total value which includes residual land value and gross reversion is 5.2% (4) Excludes the value of space occupied by Hibernia in South Dock House (8) Current rental value assumed as ERV as these assets are now being valued on a price per acre basis (5) Includes 2WML, 1SJRQ & Cumberland Place Phase 2 (9) Excl. all CBD office developments (6) Includes 1WML residential element (Hanover Mills) (10) Residential rent on a net basis 32

33 Office portfolio statistics Mar-16 Mar-17 Mar-18 In-place office contracted rent (1) 27.3m +39% 38.0m +31% 49.6m In-place office WAULT (2) 4.3yrs +56% 6.7yrs +9% 7.3yrs In-place office vacancy (3) 6% -3pp 3% - 3% (1) Excl. arrangement with Iconic Offices at Block 1 Clanwilliam (2) To earlier of break or expiry (3) By net lettable office area. Office area only (i.e. excl. retail, basement space, gym, townhall etc.) Portfolio by area Industry split of in-place tenants Top 10 tenants of in-place portfolio In-place office portfolio 1,067k sq. ft. 1.5m sq. ft. (1) Committed developments (to let) 222k sq. ft. Co-working 4% Other 2% Banking & Capital Markets 21% 49.6m Insurance & Reinsurance 2% TMT 42% Remainder 39% 49.6m 12% 10% 7% Longer term pipeline 227k sq. ft. Government Agency 21% Professional Services 8% 4% 4% 4% 4% 4% 6% 6% TMT (1) Office areas only (i.e. excl. retail, basement space, gym, townhall etc.) 33

34 In-place office portfolio statistics 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 % of next rent review cap & collar % of rent MTM (2) at next lease event Acquired in-place office portfolio 29.1m( 39psf) 35.1m( 48psf) 2.6yrs 5.1yrs 37% 0% 63% Completed office developments (3) 20.5m( 51psf) 20.6m( 52psf) 4.1yrs 10.4yrs 0% 35% 65% Whole in-place office portfolio 49.6m( 43psf) 55.7m( 49psf) 3.2yrs 7.3yrs 22% 14% 64% (1) To earlier of review or expiry (2) Mark-to-market (3) 1 Cumberland Place, SOBO Works, 1&2DC, 1WML New lettings (esp. developments) growing income and extending WAULTs 34

35 Office leases agreed and rent reviews settled Office leases agreed since Mar 17 Tenant Building Area (sq. ft.) Lease type Contracted rent m Contracted rent vs. ERV at Mar-17 % of Group rent To expiry TMT Tenant 1WML 49k New lease 2.8m +11% 5.0% 20yrs 12yrs To break Notes Jul-18 & Mar-19 commencement 77 SJR 34k New lease 1.8m N/A 3.2% 25yrs 15yrs Apr-18 commencement Media 1WML 24k New lease 1.4m +6% 2.5% 21yrs 12yrs Aug-17 commencement 2DC 19k New lease 0.7m +3% 1.3% 18yrs 10yrs Dec-17 commencement 1WML 10k New lease 0.6m +5% 1.1% 20yrs 10yrs Nov-17 commencement Break Apartments 1WML N/A New lease 0.4m +9% 0.7% 5yrs 5yrs Jan-18 commencement ESB Marine House 7k New lease 0.3m -5% 0.5% 3yrs 3yrs Oct-17 commencement 2DC 4k New lease 0.2m +3% 0.4% 15yrs 7yrs Feb-18 commencement 1WML 7k New lease 0.2m -3% 0.4% 20yrs 10yrs Jul-17 commencement Other (1) Various (1) 9k (1) New lease 0.5m -9% 0.9% Total 163k 8.9m +6% (2) 16.0% Rent reviews settled since Mar 17 Review review review Rent achieved Tenant Building date m psf m psf m psf Media Observatory Feb m m m 53 Observatory Jan m m m 49 Term extended by 5yrs at review Marine House Dec m m m 45 Actuaries Clanwilliam Court Aug-16 < 0.1m m m 45 Total 0.6m 1.3m 1.3m review was + 0.7m (+138%) above contracted rent Rental uplifts achieved were in line with ERVs in spite of extending term on Realex Notes (1) Contracted rent c. 0.5m. Comprises 5 leases: Fountain Healthcare (2k sq. ft.; 2DC), Fragomen (3k sq. ft..; Central Quay), Park Rite (50CPS; Clanwilliam Court), ESB (2k sq. ft.; Clanwilliam Court), Aldee Investments (2k sq. ft.; Marine House) (2) Excl. 77 SJRQ 35

36 Agenda Highlights Financial results Market update Disposals and acquisitions Developments Portfolio management Conclusion and outlook 36

37 Conclusion and outlook Excellent performance in the year and exciting development pipeline Cumberland Place Phase 2 commenced, holding at Gateway increased Recycling of capital likely to continue Occupational market remains favourable Constrained supply of new offices, especially in central Dublin Irish economic momentum and latent Brexit driving demand Hibernia well-positioned with a clear strategy, talented team and funding capacity 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 20 Ballsbridge Dundrum Clontarf Northern Cross Blackrock N11 Portmarnock Sutton North Bull Island Glenageary Howth 3 Kings Inns 15 St. Stephens Green Croke Park River Liffey Fairview Park Wyckham Point 2 New Century House 3 Gateway & Lands 4 Montague House 5 Hardwicke House 6 77SJRQ 7 2WML 8 1WML 9 Observatory 10 Two Dockland Central 11 One Dockland Central 12 The Forum 13 1SJRQ 14 Cumberland Place Harcourt Square 16 Dundrum View 1 Wyckham Point 3 Gateway & Lands 16 Dundrum View 20 Cannon Place Source: Google Maps, Visit Dublin, Jones Lang LaSalle (1) Property assets > 5m in value as at 31 March 2018 M50 1 &16 Herbert Park 17 Central Quay 18 One Earlsfort Terrace 19 Marine House & Clanwilliam Court 20 Cannon Place Key: Office Residential Industrial Office development 40

41 Results summary 12 months H2 H1 Portfolio value (1) Excl. of stamp duty increase (1,2) +6.6% +10.9% +1.4% +5.6% +5.2% Total property return ( TPR ) (3) TPR vs. IPD Ireland Index +11.6% +4.8% +4.1% +2.4% +7.2% +2.4% EPRA NAV per share Excl. of stamp duty increase (2) +8.7% +14.0% +2.4% +7.4% +6.2% EPRA earnings +29.4% +15.0% +13.1% (1) Like-for-like change (excl. finance costs) (2) Stamp duty on commercial property transactions increased from 2% to 6% in Budget 2018 effective 11 Oct 17 (3) Excl. acquisition costs 41

42 Summary financial statements Balance sheet highlights ' Mar Mar-17 Investment properties 1,308,717 1,167,387 Assets held for sale Other non current assets 13,438 13,604 Cash and cash equivalents 22,521 18,148 Trade and other receivables 7,239 10,108 Gross assets 1,352,449 1,209,632 Current liabilities (21,501) (24,642) Financial liabilities (non-current) (219,218) (171,138) Net assets 1,111,730 1,013,852 Equity share capital 686, ,110 Retained earnings 453, ,738 Dividends paid (38,411) (20,755) Other reserves 9,620 9,759 Total equity 1,111,730 1,013,852 IFRS NAV per share (cents) Diluted IFRS NAV per share (cents) EPRA NAV per share (cents) Summary income statement ' mths to 31-Mar mths to 31-Mar-17 Revenue 54,168 46,372 Rental income 49,075 42,519 Property expenses (3,352) (2,838) Net rental income 45,723 39,681 (1) Performance related fees (6,599) (8,215) Administrative expenses (13,517) (12,770) Net finance (costs) (6,236) (5,661) Net rental profit 19,371 13,035 Revaluation & other income/(expense): Investment properties revaluation gains 81, ,525 Investment properties disposal gains 6,425 - (1) Other gains/ (losses) (41) 2,476 Tax (expense) (31) (450) Total revaluation/other income: 87, ,551 Profit for the period 107, ,586 Diluted IFRS EPS (cents) EPRA Earnings 19,403 14,989 EPRA EPS (cents) (1) A promote fee was earned in the prior year in relation to the termination of the Windmill JV with Starwood 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: 49.6m 10.0m 9.0m Avg. rent: 47psf Avg. rent: 50psf 8.0m 7.0m 6.0m Avg. rent: 35psf 5.0m 4.0m Avg. rent: 30psf Avg. rent: 39psf Avg. rent: 47psf Avg. rent: 52psf Avg. rent: 55psf Avg. rent: 50psf Avg. rent: 55psf 3.0m 2.0m Avg. rent: 25psf Avg. rent: 31psf 1.0m TMT Tenant 0.0m Six months Sep-18 ended Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Mar-23 Sep-23 Mar-24 Weighted average period to rent review or lease expiry of 2.6yrs 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 & AIB ATM. Also excludes any rent review dates or expiries prior to Mar-18 (2) i.e. the acquired in-place office portfolio (3) Note: OPW ERV in Mar-23 is internal Hibernia assessment 43

44 Potential sq. ft. Potential sq. ft. Expected Dublin office development and refurbishment supply pipeline as at September 2017 Dublin CBD office development pipeline 4.0m Total Dublin office development pipeline (incl. suburbs) 4.0m 3.5m 3.5m 3.0m 3.0m 2.5m 2.5m CBRE 2016 take-up = 2.6m sq. ft. 2.4m 2.0m CBRE 2016 take-up = 2.1m sq. ft. 2.0m CBRE 10yr avg. takeup = 1.9m sq. ft. 1.9m 2.0m 1.5m 1.0m CBRE 10yr avg. takeup = 1.3m sq. ft. 1.0m 1.2m 1.6m 1.2m 1.4m 1.5m 1.0m 1.1m 1.3m 0.5m 0.2m 0.5m 0.2m 0.0m 2015 (A) 2016 (A) 2017 (F) 2018 (F) 2019 (F) 2020 (F) 0.0m 2015 (A) 2016 (A) 2017 (F) 2018 (F) 2019 (F) 2020 (F) Expected year of completion Expected year of completion Completed Under construction Probability weighted pipeline Pre-let/let All potential schemes Little change in overall supply from Sept-17 to Mar-18 Source: CBRE/Hibernia 44