Hibernia Reit property values rise 4% in six months to €1.33bn
Firm confirms it has let 1 Sir John Rogerson’s Quay to software firm Hubspot
1 Sir John Rogerson’s Quay has been let to software multinational Hubspot.
Real estate investment trust Hibernia Reit’s shares rose in Dublin on news that the value of its properties increased almost 4 per cent to €1.33 billion in the six months to September 30th.
The news came as the Dublin-listed company confirmed that it had let one of its new developments, 1 Sir John Rogerson’s Quay, to software multi-national, Hubspot.
Hibernia said on Tuesday that the value of its properties rose 3.9 per cent to €1.33 billion in the six-month period, the first half of its financial year.
The news prompted a near 1.5 per cent jump in Hibernia’s shares to €1.38 shortly after business began on the Dublin market. They were trading around 1.18 per cent ahead at €1.376 shortly before 1:00pm.
Profit before tax, which includes a gain from revaluing its assets, fell almost 10 per cent to €64 million from €70.6 million during the same six months last year.
Hibernia’s net rental income rose 21.5 per cent over the first half to €26.6 million from €21.9 million in the comparable period in 2017.
The figures mean that it generated total returns on its properties of 5.9 per cent in the first half, ahead of the market, which grew by 4.4 per cent.
Hibernia announced on Tuesday that it will let all the office space in 1 Sir John Rogerson’s Quay, a block the company built itself, to Hubspot, which makes sales and marketing software.
Hubspot, which already occupies 73,000 sq ft in Hibernia’s 1 and 2 Dockland Central properties, will take 112,000 sq ft in Sir John Rogerson’s Quay.
The building is one of six that make up the Windmill Quarter developed by Hibernia on Dublin’s south quays.
Justin Dowling, Hibernia’s head of asset management, said that the deal built on the strong relationship that the company has developed with Hubspot over the past three years.
During its first half, Hibernia sold New Century House in Dublin for €65.3 million, modestly ahead of its value in March.
The company also spent €9.7 million buying property, including 5.8 acres at Gateway, close to Newlands Cross, on Dublin’s outskirts, 129 Slaney Road and 50 City Quay.
More recently it announced that it was spending €27 million on buying 92.5 acres at Gateway.
Hibernia declared an interim dividend of 1.5 cent a-share for the period, up 36.4 per cent on the 1.1 cent paid last year.
Kevin Nowlan, chief executive, said that the first half had been a successful six months for Hibernia.
“We look forward to the future with confidence: there is a high level of demand for office and residential space in Dublin, both from tenants and investors and the Irish economy is growing strongly,” he added.