Preliminary results 2014

Hibernia REIT plc

Agenda

2

Operating and financial highlights

Market update

Acquisitions

Conclusion and outlook

Successful start to life as a REIT

3

OPERATING AND FINANCIAL HIGHLIGHTS

Key highlights from our first 140 days of operation:

Management team built out

– Four new hires bringing permanent staff to 10

– Three further hires in pipeline – CFO appointment imminent

– Continued support from the wider WKN team of 30 people

Finding attractive opportunities to spend our shareholders’ money in spite of competitivemarket

– Acquiring prime Dublin assets, mostly in CBD

– Reversionary potential and / or development angles

– Majority of transactions undertaken off-market

– Using loan acquisitions to gain access to property

– Exciting pipeline of deals still to come

Well ahead of run rate to deploy IPO proceeds within 18–24months

– Over €162m spent on 5 acquisitions so far, with a further €63m in committed spending

– 60% IPO proceeds already spent or committed

Our strategy

4

OPERATING AND FINANCIAL HIGHLIGHTS

Proposed investment criteria Target property types and locations

Balanced portfolio of property types

− Principally institutional quality, well located, income

producing commercial property

− Up to 30% of portfolio allocated to “value-added”

properties e.g. requiring refurbishment or tenanting

− Full scale development not envisaged other than in

special circumstances of limited risk and not above 15%

of portfolio

Primarily Dublin CBD and Greater Dublin area

Lot sizes – typically €10m–€50m

Targeting Total Shareholder Return of 10-15% p.a.

(pre-taxation) with a substantial income element when fully

invested

Ability to enter joint ventures

Gearing not to exceed 50% of portfolio (Irish REIT

limit) and not expected to exceed 40% of portfolio at

time of borrowing

Majority in Grade A or Grade B office buildings that can be acquired close to or below replacement cost

Appropriate allocation to

− Retail assets with low tenant risk e.g. in Dublin’s prime shopping districts that have historically performed well

− Industrial assets in prime locations close to good transport links and leased to strong tenant covenants

− Prime Dublin residential, infill residential schemes in close proximity to public transportation and within 6 miles of CBD

Illustrative targeted portfolio breakdown

Office Retail ResidentialIndustrial

Name LocationDate of acquisition

Initial investment Type

Gross initial yield

Acquisitiontype

Acquisition structure

Wyckham Place Dundrum,Dublin 16

17-Feb-14 €67m Primarily Residential

n/a Off-market Loan

New Century House Mayor Street, Dublin 1

11-Mar-14 €47m Office c.6%(1) Off-market Property

Gateway Site Newlands Cross, Dublin 22

03-Apr-14 €10.1m Industrial c.5% On-market Property

Montague House and Hardwicke House

Hatch Street Upper and Adelaide Road,Dublin 2

16-May-14 €18.25m Office c.8% Off-market Loan

Chancery Building and Chancery Apartments

Chancery Lane, Dublin 8

20-May-14 €16m Office c.7% Off-market Loan

TotalTotal including acquisition costs

€158m€162m

Summary of acquisitions to date

5

OPERATING AND FINANCIAL HIGHLIGHTS

Acquisitions to date

Since commencing operations in January 2014, have deployed €162m, with a further €63m committed

Notes(1) Once rent abatement period ends in October 2015

Financial highlights

6

OPERATING AND FINANCIAL HIGHLIGHTS

Gateway Site acquired [ ]

Loans acquired from Ulster Bank (Wyckham assets)

Principally cash + cash equivalents of [ ]

Financials reflect the fact most of the acquisitions did not close in the first 90 days of operations

Balance sheet31 March 2014

€’000 Notes

Loans 68,563 Loans acquired from Ulster Bank (Wyckham assets)

Current assets 303,337 Principally cash + cash equivalents of €291.7m

Current liabilities (934) Principally accrued acquisition costs and other trade payables

Net assets 370,966

EPRA NAV per share 96.4 cents

Financial highlights

Income statement 31 March 2014 Notes

Net loss (846) Reflects operating expenses of €1.2m and modest interest income on cash

deposits

Basic and diluted loss per share (0.22) cents

Agenda

7

Operating and financial highlights

Market update

Acquisitions

Conclusion and outlook

Irish economic backdrop supportive of continued recovery in property market

8

MARKET UPDATE

Domestic demand to contribute to growth in 2014 Employment growth has picked up strongly

PMIs are well into positive territory Consumer confidence has risen since the end of the bailout

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014f 2015f

% Y

oY

Domestic demand GDP

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

-4%

-3%

-2%

-1%

0%

1%

2%

Q2

2007

Q4

2007

Q2

2008

Q4

2008

Q2

2009

Q4

2009

Q2

2010

Q4

2010

Q2

2011

Q4

2011

Q2

2012

Q4

2012

Q2

2013

Q4

2013

Quarterly (LHS) Annual (RHS)Source: CSO, Goodbody Source: CSO

40

45

50

55

60

65

May

11

Jul

11

Sep

11

Nov

11

Jan

12

Mar

12

May

12

Jul

12

Sep

12

Nov

12

Jan

13

Mar

13

May

13

Jul

13

Sep

13

Nov

13

Jan

14

Mar

14

Composite Manufacturing Services

Source: Bloomberg, Markit Source: Factset

30

40

50

60

70

80

90

Jan

08

May

08

Sep

08

Jan

09

May

09

Sep

09

Jan

10

May

10

Sep

10

Jan

11

May

11

Sep

11

Jan

12

May

12

Sep

12

Jan

13

May

13

Sep

13

Jan

14

Index

ource:

Data released

since IPO

Data released

since IPO

Data released

since IPO

440

460

480

500

520

540

560

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

Capital valu

e index

0

200

400

600

800

1,000

1,200

1,400

1,600

1976

1980

1984

1986

1988

1990

1992

1994

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Capital valu

e index

Commercial property market recovering strongly, particularly office sector

9

MARKET UPDATE

Commercial property is continuing its recovery Capital values are currently at c.1999 levels

Quarterly change in capital values by sector Quarterly change in rents by sector

Source: Jones Lang LaSalle Source: Jones Lang LaSalle

Source: IPD Source: IPD

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

Quart

erly c

hange

Retail Office Industrial

-6%

-4%

-2%

0%

2%

4%

6%

8%

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

Quart

erly c

hange

Retail Office Industrial

Data released

since IPO

Data released

since IPO

Data released

since IPO

Dublin residential market also showing strong growth from depressed levels

10

MARKET UPDATE

Residential prices now growing across the country Average residential property prices

Source: CSO Source: ptsb/ESRI, CSO, Goodbody

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Jan-

00

Jan-

01

Jan-

02

Jan-

03

Jan-

04

Jan-

05

Jan-

06

Jan-

07

Jan-

08

Jan-

09

Jan-

10

Jan-

11

Jan-

12

Jan-

13

Jan-

14

Dublin ex Dublin

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14

% Y

oY

Dublin ex Dublin

Data released

since IPO

Data released

since IPO

Rental market: Dublin office dynamics

11

MARKET UPDATE

Grade A & B vacancy rates have reduced since IPO, particularly in Dublin CBD

Only c. 250,000 sq. ft. of prime city centre office space under construction and not expected to bedelivered until 2016.

Prime rents now headlining at €38–€42psf

CBRE forecasting prime rents at c.€60psf by 2020(1)

(1) CBRE Outlook 2014

0

1,000

2,000

3,000

4,000

5,000

IFSC Dublin 2 Dublin 4 Rest of Dublin

Th

ou

san

ds (

sq

.ft.

)

Number of Grade A vacant buildings in Dublin IFSC, 2 and 4

Source: Jones Lang LaSalle

Vacant space by geography and quality

Source: Jones Lang LaSalle

23

1

7

3

3

21 1 1

4

2

1

2

0

2

4

6

8

10

12

14

0 - 9,999sq.ft.

10,000 -19,999sq.ft.

20,000 -29,999sq.ft.

30,000 -39,999sq.ft.

40,000 -49,999sq.ft.

50,000 -59,999sq.ft.

60,000 -69,999sq.ft.

70,000 -79,999sq.ft.

80,000 -89,999sq.ft.

90,000 -99,999sq.ft.

100,000 -149,999

sq.ft

150,000sq.ft.+

Only 2 buildings of >50,000 sq. ft. currently vacant, down from 5 at end of

Q2 2013

Dublin City

IFSC

Dublin 2

Dublin 4

Grade A

Grade B

Grade C

12

MARKET UPDATE

Rental market: Dublin office dynamics (cont’d)

Dublin office take-up expected to be c.2m sq.ft. in 2014 Dublin geographic take-up

Source: Jones Lang LaSalle

0.0

0.5

1.0

1.5

2.0

2.5

3.0

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Q1 2

014

Million s

q.f

t.

Forecast Take Up 20 Year Average

0.0

1.0

2.0

3.0

4.0

5.0

0

10

20

30

40

Q4 2

001

Q4 2

002

Q4 2

003

Q4 2

004

Q4 2

005

Q4 2

006

Q4 2

007

Q4 2

008

Q4 2

009

Q4 2

010

Q4 2

011

Q4 2

012

Q4 2

013

Q1 2

014M

illion s

q.f

t.

Occupied Stock Vacant Stock Under Construction

52% 56% 59% 66%

48% 44% 41% 34%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 Q1 2014

City Centre Suburbs

Source: Jones Lang LaSalle

Vacancy reducing and no new supply Q1 2014 Dublin take-up by sector

CBD

Suburbs

TMT Transport and Storage

Insurance and Pension Funds Banking and Fin.

Other

203,241 sq.ft.

393,839 sq.ft.

Source: Jones Lang LaSalleSource: Jones Lang LaSalle

Investment market: volumes of transactions picking up sharply

13

MARKET UPDATE

Source: Jones Lang LaSalle

Note: Excludes IBRC loan sales of €9.3bn nominal value

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

€m

illions

Investment volume Loan sales Forecast 12 year average

Ø €1,152m

Investment market: volumes of transactions picking up sharply (cont’d)

14

MARKET UPDATE

(1) Source: Jones Lang LaSalle

Q1 2014(1)

€934m of direct asset sales in Ireland

€287m of loan sales

Dublin made up 95% of total sales volume

Hibernia transactions equated to c.10% of total sales volume in Q1

Q2 2014

Special liquidators of IBRC confirmed completed sales processes of Project Stone and Project Sand

Project Stone: 85% of €9.3bn nominally valued CRE loans originating through the Irish business of IBRC was sold to:

– Deutsche Bank

– Lone Star

– Carval

– Goldman Sachs

Hibernia management believes that this transaction and others will lead to secondary sale + JV opportunities

2014 – Strong sales of direct property and loans

Investment market: availability of assets

15

MARKET UPDATE

(1) Source: JLL Ireland Investment market report. April 2014

NAMA Current plan is to repay €7.5bn in bonds from 2014-2016 In February 2014 Finance Minister Michael Noonan asked NAMA to weigh up the pros and cons of selling off its property

more quickly During 2013 NAMA executed its first major Irish loan sale of €800m

Banks IBRC: Unexpected decision by government in February 2014 to liquidate the bank. 90% of loans were sold rather thantransferred to NAMA and this should result in faster disposal of underlying assets than previously estimated

Ulster Bank: Disposal of £9bn in Irish investment and development loans kicked off in February with €850m saleprocess for portfolio of commercial loans

Lloyds: Disposal programme continuing apace with £1.9bn (25% of total) Irish commercial loans sold in 2013 Permanent TSB: To sell commercial loan book of €2.1bn Domestic banks: continue to make selective loan sales

Other Private equity funds, active over last 18 months in Ireland, have become increasingly active in other EU markets andsome are exploring opportunities to exit Irish assets particularly where project management expertise is required

JV opportunities – NAMA has confirmed it will engage in JV opportunities with suitable partners, as have some PEfunds, and these opportunities will most likely emerge where project management expertise is required

JLL now forecasting direct property and commercial loan transactions totalling €5bn in 2014(1)

Expectations for the total value of commercial property transactions in 2014 have increased significantly since IPO

Agenda

16

Operating and financial highlights

Market update

Acquisitions

Conclusion and outlook

Location of Hibernia acquisitions

Office acquisitions all within CBD; ex-CBD acquisitions both with good transport links Central Dublin acquisitions

M1

M50

M50

N3/M3

N2/M2

M50

Dublin

N81

Howth

Clontarf

DublinAirport

North BullIsland

Portmarnock

Blanchardstown

Clondalkin

Tallaght

Blackrock

Ballsbridge

Rathfarnham

Phibsborough

DrumcondraCastleknock

Sutton

NorthernCross

Beaumont

Ballymun

The Ward

NorthwestBusiness Park

Glenageary

Dundrum

Palmerstown

Kimmage

N11

Croke ParkFairview Park

Alexandra BasinRiver Liffey

Herbert Park

Kings Inns

St. StephensGreen

Source: Google Maps, Visit Dublin, Jones Lang LaSalleNote: Hibernia acquisitions shown in red

Ballymount

N4/M4

N7/M7

ACQUISITIONS

17

Summary of Dorville portfolio loan acquisition

18

ACQUISITIONS

Core assets Ascribed value

Wyckham Point Residential €30m

Cannon Place Residential €6m

South Dock House Office €5m

€41m

Summary

Off–market acquisition of €67m Dorville loan portfolio from Ulster Bank

Gaining access to a portfolio of 16 assets, principally residential

Recommending to Board to retain three “core” assets and undertake phased disposal of the other assets

Non core assets Ascribed value

8 residential assets €19m

2 office assets €2m

3 development assets €5m

€26m

Grade A

CBD

Income producing

Value-add space

Low tenant risk

Prime Dublin

Prime location

Good transport links

Strong covenant

Infill

Good transport links

Wyckham Point

19

ACQUISITIONS

Dundrum, Dublin 16

Acquired as part of €67m Ulster Bank loan portfolio

Apportioned value of c. €30m

Comprises:

– Wyckham Point – 213 partially completed apartments

– Mix of one, two and three bed apartments

– Excellent amenities incl. 3 acre park with lake, gym, creche

Prime south Dublin residential location

– Good transport links

– close to Dundrum Shopping Centre

Office

Property type

Retail

Industrial

Residential

Off-mkt On-mkt

Property Loan

Dev. opportunity

Acquisition type

Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016

Stage 1 - Pre Construction

Stage 2 - Construction

Stage 3 - Turn-key fit-out

Wyckham Point planned timeline to complete

Cannon Place

20

ACQUISITIONS

Herbert Road, Dublin 4

Acquired as part of €67m Ulster Bank loan portfolio

Apportioned value of €6m

Comprises 12 two and three-bed apartments in a 22 unit apartment block

Well-located modern estate of three blocks of 22 apartments

– Walking distance from Sandymount and Ballsbridge villages

– Close to Lansdowne DART station and the Aviva Stadium

Grade A

CBD

Income producing

Value-add space

Low tenant risk

Prime Dublin

Prime location

Good transport links

Strong covenant

Infill

Good transport links

Office

Property type

Retail

Industrial

Residential

Off-mkt On-mkt

Property Loan

Dev. opportunity

Acquisition type

South Dock House

21

ACQUISITIONS

1st Floor Offices, Hanover Quay, Dublin 2

Acquired as part of €67m Ulster Bank loan portfolio

Apportioned value of c.€5m, equating to €530psf capital value

Asset comprises

– One floor of 8,942 sq ft in three office suites with parking for 9 cars

– Let to 3 tenants (Open Hydro Ireland, Collins Stewart, Guggenheim Partners)

– Annual rent of €312k, average of €35psf

– WAULT of three yearsGrade A

CBD

Income producing

Value-add space

Low tenant risk

Prime Dublin

Prime location

Good transport links

Strong covenant

Infill

Good transport links

Office

Property type

Retail

Industrial

Residential

Off-mkt On-mkt

Property Loan

Dev. opportunity

Acquisition type

New Century House

22

ACQUISITIONS

Mayor Street, IFSC Dublin 1

Acquisition price €47m: equating to €587psf capital value

Asset comprises

– 80,000 sq ft offices over six storeys with parking for 87 cars

– Let to Bank of Ireland on FRI lease until 2024, with upward-only rent review in 2019

– Annual headline rent €2.85m, or €32psf, with rental abatement until October 2015

– Initial yield (post-abatement period): c.6%

Significant refurbishment work is about to be implemented by the tenant

Grade A

CBD

Income producing

Value-add space

Low tenant risk

Prime Dublin

Prime location

Good transport links

Strong covenant

Infill

Good transport links

Office

Property type

Retail

Industrial

Residential

Off-mkt On-mkt

Property Loan

Dev. opportunity

Acquisition type

Gateway Site

23

ACQUISITIONS

Newlands Cross, Naas Road, Dublin 22

Acquisition price: €10.1m

Comprises

– 14.1 acres (5.71 ha) with three large industrial/logistics facilities of 177,960 sq. ft.

– Buildings currently 46% occupied and producing an annual rental income of €517k or c.€5.5psf

– Initial yield c.5%

Strategic location adjacent to intersection of Ireland’s two busiest roads and Dublin’slight rail system

Significant redevelopment potential

Grade A

CBD

Income producing

Value-add space

Low tenant risk

Prime Dublin

Prime location

Good transport links

Strong covenant

Infill

Good transport links

Office

Property type

Retail

Industrial

Residential

Off-mkt On-mkt

Property Loan

Dev. opportunity

Acquisition type

Montague House & Hardwicke House

24

ACQUISITIONS

Hatch Street Upper & Adelaide Road, Dublin 2

Acquisition price: €60m, equating to €692psf capital value

Acquisition from Hardwicke Group in partially deferred transaction structure

– Initial acquisition of €18.25m of loans (giving operational control) with NIY of 7.7%

– Right to take full ownership of the buildings any time up to mid-2016 for incremental €41.75m

Assets comprise

– 88,483 sq ft of prime Grade A office space in two 5 storey buildings on contiguous back-to-back sites with 56 basement car parking spaces

– Both multi-let at avg rent of €30psf (Hardwicke €34psf, Montague €27psf)

– WAULT of 7 years

– 100% of rent to be reviewed during or prior to 2018

– 28% with break clauses in 2016

Grade A

CBD

Income producing

Value-add space

Low tenant risk

Prime Dublin

Prime location

Good transport links

Strong covenant

Infill

Good transport links

Office

Property type

Retail

Industrial

Residential

Off-mkt On-mkt

Property Loan

Dev. opportunity

Acquisition type

Chancery Building & Chancery Apartments

25

ACQUISITIONS

Chancery Lane, Dublin 8

Acquisition price: €16m

Acquiring loans from Bank of Ireland, giving full ownership of assets

Assets comprise

– a) office building with 33,799 sq. ft. space over 6 stories with 19 parking spaces

– Allocated price of €15m for the offices equates to cap. val. of €445psf

– Fully let with WAULT of 9 years and 2 years to break

– Average passing rent of €30psf

– Net initial yield 6.8%

– b) four 2 bed apartments in same building with separate entrance

– Fully let on 1 year contracts

– Allocated price of €1m for the apartments equates to a net initial yield 6.1%

– c) a small 0.05 acre site with planning consent for a c. 13,900 sq. ft. NIA office building or a 45 ‘suite’ student accommodation building

Grade A

CBD

Income producing

Value-add space

Low tenant risk

Prime Dublin

Prime location

Good transport links

Strong covenant

Infill

Good transport links

Office

Property type

Retail

Industrial

Residential

Off-mkt On-mkt

Property Loan

Dev. opportunity

Acquisition type

Agenda

26

Operating and financial highlights

Market update

Acquisitions

Conclusion and outlook

Conclusion and outlook

27

CONCLUSION AND OUTLOOK

Successful start to life as a publicly traded REIT

Management team strengthened

Over €225m of funds spent or committed in first 140 days of operation (60% of net capital raised)

Well ahead of run-rate to deploy funds within 18–24 months stated

Competition remains strong, particularly for office buildings but team is finding exciting opportunities

Significant increase in off-market situations

Continuing opportunities in “loan to own” transactions

Remain confident of finding attractive deals in all property types and of spending shareholders’

money wisely

Agenda

28

Appendix

Strong board with mix of property and plc experience

29

APPENDIX

Governance

Hibernia REIT plc

Breadth of skill set and experience encompassing institutional property management and development in prime

and value add space, with strong relationships with key decision makers in banking and property

WK Nowlan is a property asset management company staffed by 33 professional staff with capacity to execute multiple

transactions simultaneously

The team has a broad mix of skills covering all the key professional aspects of property management and development:

surveyors and valuers, architects, engineers, portfolio managers and financial analysts

Capacity to execute multiple transactions simultaneously

Ability to manage complex commercial and residential projects

Management

WK Nowlan REIT Management

Support

Danny KitchenIndependent Non-Executive Chairman

Stewart HarringtonIndependent Non-Executive Director

Terence O’RourkeNon-Executive Director

Colm BarringtonIndependent Non-Executive Director

Bill NowlanNon-Executive Director

Non-Executive Chairman of Workspace Group plc and Non-Executive Director of LXB Retail Properties plc

Previously Finance Director of Green Property plc

Non-Executive Director of BWG Group and Stafford Holdings

Previously a Partner Jones Lang Wootton (now Jones Lang LaSalle) Founding Partner of Harrington Bannon Chartered Surveyors

Non-Executive Director of The Irish Times and Board Member of the Chartered Accountants Regulatory Board

Previously Managing Partner KPMG Ireland

Non-Executive Chairman of Aer Lingus plc and CEO and Director of Fly Leasing Ltd

Previously Head of Property Investment of Irish Life from 1985 to 1995, the largest property fund manager in Ireland. Established WK Nowlan in 1995, one of the largest property asset managers in Ireland

Kevin NowlanChief Executive Officer

Bill NowlanInvestment Director

Frank KennyPortfolio Management Director

Frank O’NeillChief Operations Officer

>20 years of experience in the Irish property market

Previous positions include Senior Portfolio Manager at NAMA, Portfolio Manager at Treasury Holdings and Assistant Manager at Anglo-Irish Bank plc

>40 years of experience advising on investment in Irish commercial property

Previously Head of Property Investment of Irish Life from 1985 to 1995, the largest property fund manager in Ireland. Established WK Nowlan in 1995, one of the largest property asset managers in Ireland

>35 years of experience in the Irish and US property markets

Founder and CEO of Willett Companies LLC, boutique investment company which managed, developed and/or owned 2 million sq ft of real estate

>20 years of experience in the Irish property market

Previously, manager of WK Nowlan Property Management Division, covering Irish and UK properties

WK Nowlan Property

Overview of the Irish REIT regime

30

APPENDIX

Summary of Irish REIT regime

Established Introduced by Finance Act 2013

Legal form Irish incorporated PLC company with an allotted share capital of not less than €38,092

Shareholder requirements No closely held company; 10% threshold for corporate shareholders

Listing requirements Listed on the main market of a stock exchange in an EU Member State

Business restrictions >75% of aggregate income derived from property rental business

>75% of portfolio market value must relate to property rental business

Within 3 years of commencement, the REIT must hold at least 3 separate assets, none of which having a market value >40% of total portfolio

Irish and non-Irish assets

Authorised sectors: commercial properties, industrial properties, residential properties

Leverage restrictions Profit financing ratio of at least 1.25 : 1

Profit financing ratio = property income plus property finance costs divided by property finance costs

Tax Tax exemption for certain income from property rental business, 12.5% for non property rental income

Tax exemption for capital gains, 33.0% for non property rental assets

Dividend withholding tax of 20.0%

Irish stamp duty of 1.0% apply to the purchase of shares in a REIT

Distribution requirements Property income: 85%

Capital gains: no distribution obligation

Summary of Irish REIT regime

Source: European Public Real Estate Association

Investment market: recent transactions in Dublin

31

MARKET UPDATE

75 St Stephen’s Green

Transaction Close Q4 2013

Sector Office

Quality Grade A

Price €75 million

Purchaser Lonestar

Initial Yield Off market deal – info

not available

Capital Value psf €695

Years to Expiry Off market deal – info

not available

Lease Maples & Calder, Hedgeserve,

Cantor & EMPGI

Rent psf Unknown

Riverside II

Transaction Close Q4 2013

Sector Office

Quality Grade A

Price €50 million

Purchaser IPUT

Initial Yield 6.12%

Capital Value psf €685

Years to Expiry 7 years to break option on

both leases

Lease Bank of NY Mellon &

Beauchamps Solicitors

Rent psf €42

I Adelaide Road

Transaction Close Q4 2013

Sector Office

Quality Grade B

Price €33.7 million

Purchaser Irish Life

Initial Yield 6.75%

Capital Value psf €555

Years to Expiry 11 years

Lease AIB

Rent psf €36.25

One Grand Canal Square

Transaction Close Q4 2013

Sector Office

Quality Grade A

Price €93 million

Purchaser IPUT

Initial Yield 5.86%

Capital Value psf €770

Years to Expiry HSBC and Accenture

account for 90% of income

and both have break options

in 2022. (8.5 years)

Lease Multi-Let to HSBC, Warner

Chilcott & Accenture. Small

element of Retail at

Ground Floor.

Rent psfOffice: €37-€60

Retail: €60-€80

Investment market: recent transactions in Dublin (cont’d)

32

MARKET UPDATE

Hume House, Ballsbridge

Transaction Close Q1 2014

Sector Office

Quality 2nd Generation

Price Analysed at €30 million

Purchaser Blackstone

Initial Yield 5.9%

Capital Value psf €364

Years to Expiry AIB (10 years), BOI

(4 years)

Lease AIB and BOI

Rent psf €28-€34

Block 1 & 2, Grand Mill Quay

Transaction Close Q1 2014

Sector Office

Quality Grade A

Price €65 million

Purchaser Google

Initial Yield n/a - bought by occupier

Capital Value psf €674

Years to Expiry n/a

Lease n/a

Rent psf n/a

Block B, Riverside IV

Transaction Close Q1 2014

Sector Office

Quality Grade A

Price Analysed at €32.3 million

Purchaser Blackstone

Initial Yield 4.30%

Capital Value psf €550

Years to Expiry 51% vacant at date of sale

Lease AWAS Aviation Acquisitions &

Indeed Ireland Operations

Rent €24-€60

Bloodstone Building

Transaction Close Q 1 2014

Sector Office

Quality Grade A

Price Analysed at €37.7 million

Purchaser Blackstone

Initial Yield 1.5% (due to vacancy)

Capital Value psf €450

Years to Expiry 79% vacant at time of sale

Lease Seb Life Assurance,

LogMeIn, Wonga (new

tenant)

Rent €24.50-€30