Hibernia’s NAV up by 1.4% despite ‘softening’ Irish market

Hibernia has posted a 1.4% increase in its net asset value per share, while sounding a note of caution as leasing deals slow in Ireland. The firm’s EPRA NAV per share grew to 175.7 cents in the six months to 30 September 2019, compared with 173.3 cents in March. Its portfolio value also remained stable at €1.4bn, up 0.6% in the period. The firm boosted its dividend to 1.75 cents per share, up 16.7% on the previous year. During the period, it expanded its 2 Cumberland Place office development in Dublin by 12% to 56,000 sq ft, with completion now expected by the third quarter of next year. It also secured provisional planning for a 152,000 sq ft redevelopment of Clanwilliam Court in the Irish capital, subject to appeal. Its net debt and loan-to-value ratio also remained broadly unchanged at €221.5m and 15.6% respectively. However, chief executive Kevin Nowlan said the firm was somewhat cautious about market conditions. “While Ireland continues to have one of the fastest growing economies in the EU, business and consumer sentiment have softened in recent months, consistent with global trends. “We have also seen some evidence of smaller occupiers deferring decisions on leasing space given the current geopolitical uncertainty. Nonetheless, overall tenant demand for offices and apartments in Dublin remains high, and job creation from foreign direct investment is near record levels.” He also highlighted potential challenges due to recent tax changes, following the recent hike in the rate of stamp duty on commercial real-estate transactions in Ireland from 6% to 7.5%. “It remains to be seen how the Irish property investment market reacts to the tax changes announced by the government in the recent budget.” To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette