Ireland-focused Hibernia REIT has reported a 5.2% rise in the value of its investment portfolio, as the Dublin market is buoyed by Brexit-related activity.
In its interim results for the six months to 30 September 2017, the company said that its total property investment return was 7.2%, and it was committed to several new schemes. The net asset value per share crept up from March, from €148,000 to €156,000.
Three committed schemes covering 247,000 sq ft of offices will complete by the end of 2018, followed by a near-term and longer-term pipeline of five schemes totalling 660,000 sq ft of office space.
The company said that Dublin was already starting to see the benefits of companies relocating following the UK’s vote to leave the EU. It predicted a bumper year for overall take-up in the Irish capital, although it cautioned that there would be an immediate financial impact from the trebling of stamp duty in Ireland, introduced in October.
Hibernia’s profit before tax was €70.6m, signifcantly up from September 2016, when the REIT posted €32.4m profit.
Kevin Nowlan, chief executive of Hibernia, said: “Demand from domestic and international occupiers for office space in Dublin remains very strong: 2017 is likely to be close to a record year for office take-up and we have started to see some Brexit-related lettings occurring. In the longer term Dublin is expected to have one of the highest growth rates in office-based employment among major European cities, which bodes well for future tenant demand.
“We remain optimistic about our prospects: our portfolio is rich in opportunity, we expect to recycle capital and we have flexible, low-cost funding available to support further developments and acquisitions as appropriate.”
To send feedback, e-mail nick.johnstone@egi.co.uk or tweet @n_johnstone or @estatesgazette
