Hibernia swings to profit as Dublin office market picks up

Hibernia REIT has swung back into profit in its half-year results, its chief executive welcoming rising activity in the Dublin office market but warning that government advice to reintroduce home working will now hit sentiment. The company, which invests in offices in the Irish capital, posted a profit of €21.2m (£17.8m) for the six months to 30 September after reporting a €34.2m loss a year ago. The team pinned the turnaround on rental profit. Net tangible assets per share were almost unchanged, dipping by just 0.1% to 172.5 cents. The value of the company’s portfolio grew by 0.4% to €1.45bn. During the six months the REIT completed its schemes at 2 Cumberland Place and 50 City Quay and since the end of the half-year has offloaded its Dockland Central development to Commerz Real. Its successes on the leasing front include advanced discussions with accountancy group KPMG over taking space at its Harcourt Square scheme. Chief executive Kevin Nowlan said: “It has been pleasing to see the pick-up in activity in the Dublin office market since we reported in May, with particular interest in prime, ESG-efficient, city centre space. “While the government’s decision this week to advise a temporary return to working from home is likely to impact activity in the near-term, with our clear strategy, an exciting development pipeline ready to start in 2022 and the team and funding in place to deliver it, we remain optimistic about our longer-term prospects.” To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews