Pretax profits jump at property group Hibernia Reit

First-half pretax profits more than doubled at Hibernia Reit, the property investment group said on Thursday as it announced the signing of a new €400 million revolving credit facility.

The group recorded a profit before tax of €73.7 million for the six months to the end of September, which includes revaluation surplus and gains on disposals. This compares to a pretax profit of €31.9 million for the same period a year earlier.

The company declared an interim dividend of 0.7 cents per share, up from 0.3 cents last year.

It reported good progress on a number of developments it is working on including the refurbishment of Cumberland House, which is to be let to Twitter for an annual rent of €4.6 million.

Hibernia said its contracted rent toll is now at €34.4 million, up 52 per cent compared to March 31st.

The group also said it had net cash of €115 million at the end of September versus €139 million at the end of March.

"We are pleased with the performance for the first half of the year: we have made significant progress on our development portfolio and signed two major pre-lets. Hibernia's strategy and skillset - allowing us to access off-market deals, loan portfolio opportunities and to take on major development and refurbishment projects - is clearly delivering," said chief executive Kevin Nowlan.

“The Dublin property market is well supported by the economic growth Ireland is enjoying and with new, flexible funding in place allowing us to act quickly as opportunities arise we are optimistic for the future,” he added.

Hibernia also announced a new €400 million revolving credit facility with a syndicate of three banks to replace the existing €100 million one that was due to mature in August 2017.

The new facility, which is being provided by Bank of Ireland Corporate Banking, Barclays Bank Ireland and Ulster Bank, has a reduced margin compared to the previous facility and the same financial covenants. The banks are acting as joint bookrunners and arrangers and participating in the following proportions: BoI €190 million, Barclays €140 million and Ulster Bank €70million.

“We are delighted to have agreed this facility, continuing our relationship with Bank of Ireland and welcoming Barclays and Ulster Bank as new lenders. This secures competitively priced and flexible financing for Hibernia for five years and will enable us to move quickly to take advantage of investment opportunities as well as to fund our development pipeline,” said chief financial officer Tom Edwards-Moss.