Interim Results November 2017 1 Disclaimer This presentation - PowerPoint PPT Presentation

Interim Results November 2017 1

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: 1SJRQ under development, Windmill Quarter 2

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

Results summary 6 months to Sept-17 6 months to Sept-16 Portfolio value (1) +5.2% +2.4% Net of stamp duty increase (1,2) +0.8% Total property return (“TPR”) +7.2% +4.5% TPR vs. IPD Ireland Index +2.4% -0.8% EPRA NAV per share +6.2% +2.9% Net of stamp duty increase (2) +0.8% +54.4% (3) EPRA Earnings +13.1% (1) Net of capex and acquisitions (2) Stamp duty on commercial property transactions increased from 2% to 6% in Budget 2018 effective 11 Oct 17 (3) Prior year comparison excl. the surrender premium of €4.9m received from a previous tenant in 2015 4

Business highlights • Continued progress with development pipeline 1WML and 2DC (1) completed – – 1SJRQ and Hanover Building (renamed 2WML) on track for 2018 completions – Working to refine near and longer term pipeline of five schemes • New lettings increasing income and WAULT of portfolio, with further to go – Contracted rent roll of €49.5m (2) , +7% since Sept-16 — Letting of committed developments plus remainder of 1WML expected to add c.€15m — Acquired in- place offices reversionary potential c.€6m (avg. 2.9yrs to review/expiry) – WAULT to break of in-place offices now 6.9yrs, +17% since Sept-16 • Strong balance sheet with undrawn facilities available – Net debt of €181m, LTV 14.3% – Cash and undrawn facilities of €150m net of committed capex and planned repayment of 1WML facility • Growing dividend – 1.1c per share, +47% on prior year (1) 2DC completed post 30-Sept-17 (2) Contracted rent incl. net residential rent and excl. Iconic Offices arrangement in Clanwilliam 5

Looking ahead • Strong demand for office space in Dublin – Broad based growth in Irish economy – Continued FDI in Dublin – Brexit moves starting to be seen • Still plenty to come from portfolio in near term – Two committed schemes delivering 174k sq. ft. of offices in next 12 months – Likely to start 50k sq. ft. office scheme at Cumberland Place in 2018 – Acquired in-place portfolio is 23% reversionary and has 2.9yrs to review/expiry • Exciting longer term development pipeline – Four schemes with potential to add up to 336k sq. ft. net new office space – 49% planning approved: working to refine and improve schemes • Expect to recycle capital into new opportunities • Hibernia well positioned – Talented team with clear strategy – Cash and undrawn facilities of €150m (1) (1) Net of committed capex and planned repayment of 1WML facility 6

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

Financial highlights Balance sheet at 30 Sept 17 Proforma balance sheet incl. stamp duty change (1) (2) (2) (€ ’ 000) 30-Sept-17 31-Mar-17 % change (€ ’ 000) 30-Sept-17 31-Mar-17 % change Portfolio value 1,265,607 1,167,387 8% Portfolio value 1,211,927 1,167,387 4% Net debt 180,972 155,257 17% Net debt 180,972 155,257 17% Loan to value 14.3% 13.3% 8% Loan to value 14.9% 13.3% 12% Net assets 1,079,044 1,013,852 6% Net assets 1,025,364 1,013,852 1% EPRA NAV per share (cents) 155.3c 146.3c 6% EPRA NAV per share (cents) 147.5c 146.3c 1% Proforma income statement incl. stamp duty change (1) Income statement for 6 months to 30 Sept 17 6 months to 6 months to 6 months to 6 months to (€ ’ 000) 30-Sept-17 30-Sep-16 % change (€ ’ 000) 30-Sept-17 30-Sept-16 % change Net rental income 21,864 16,686 31% Net rental income 21,864 16,686 31% Revaluation gain 61,626 24,342 153% Revaluation gain 7,946 24,342 -67% Net profit 70,604 32,296 119% Net profit 16,924 32,296 -48% EPRA earnings 9,024 7,981 13% EPRA earnings 9,024 7,981 13% EPRA EPS 1.3c 1.2c 8% EPRA EPS 1.3c 1.2c 8% Interim dividend per share 1.1c 0.75c 47% Interim dividend per share 1.1c 0.75c 47% Strong performance in the period: stamp duty impact post period end (1) Stamp duty on commercial property transactions increased from 2% to 6% in Budget 2018 effective 11 Oct 17 (2) Including capex & acquisitions 8

EPRA NAV per share movement since 31 March 17 Strong uplift in EPRA NAV per share in period to Sept 17: stamp duty impact post period end 160 Valuation uplift: 9.0c 158 1.3c 156 2.6c 0.2c 155.3c EPRA NAV cent per share 1SJRQ (1.5c) 154 6.4c 1WML 152 IFSC Other (2) +6% South Docks 150 148 Traditional 147.5c Core (7.8c) +1% 146.3c 146 Other (1) 144 +4.9% (3) (c.80% yield impact) Like-for-like in-place office valuation: 142 140 Mar-17 Investment Development EPRA earnings Dividends paid Other Sept-17 Est. stamp duty Sept-17 properties reval. properties reval. impact (proforma incl. stamp duty) (1) Residential/Other (2) 2WML (3) Represents €30m of the net property valuation uplift in the period. Excl. 2DC, Clanwilliam, Marine & Harcourt on the basis that capex was spent on the property or the valuation assumptions changed during the period 9

EPRA earnings movement since 30 Sept 16 Uplift in EPRA earnings since 30 Sept 16 (€’000) €20,000 Acquisitions in prior year €1,160 Lease renewals/rent reviews €1,555 €18,000 Performance related pay (€2,179) Lease expiries & other (€1,465) Other admin (€222) €16,000 EPRA earnings ‘000 €14,000 €1,250 €4,015 €12,000 ( €2,401 ) ( €360 ) €10,000 €9,024 ( €1,461 ) +13% €7,981 €8,000 €6,000 Fair value loss on shares issued (€1,082) €4,000 Other gains (1) (€379) €2,000 €0 Sept-16 New lettings In-place lease Admin costs Finance costs Other Sept-17 on completed events/acquisitions (net) developments (1) Dev. mgmt. fees earned and gains on non core asset disposals that arose in the prior year 10

Substantial financial capacity in place Hedged Hedged €44m (2) €200m (1) RCF Net equity raised Sources of funds €44m €400m €658m Committed capex €69m Remaining inv. capacity excl. 1WML debt Net debt €150m €181m Net cash invested Uses of funds €839m 1WML Debt €44m €0m €200m €400m €600m €800m €1000m €1200m Current LTV of 14.3%: if RCF fully invested, LTV would be 27.0% (3,4) (1) €100m hedged from Nov 16 to Nov 20. A further €50m hedged from Nov 17 to Nov 21, rising to €100m from Feb 18. Hedging instrum ents are a combination of interest rate caps and swaptions with strike rates of 1% (reference rate is 3M Euribor) (2) Facility fully hedged per expected drawing schedule using interest rate caps with a 1% strike rate (reference rate is 3M Euribor) (3) Excl. 1WML facility 11 (4) Including the estimated impact of the stamp duty change, LTV would be 14.9% and 28.0% if RCF was fully invested (excl 1WML facility)