Hibernia Reit says building materials squeeze could last nine months Portfolio revaluation leads to €67m markdown, dragging company to €25.2m net loss
Wed, May 26, 2021, 09:50
A squeeze on building materials that is driving up construction costs could last up to nine months, Hibernia Real Estate Investment Trust (Reit) chief executive Kevin Nowlan predicts.
A €67 million fall in the value of its properties on the back of the Covid-19 crisis left office developer Hibernia Reit with a €25.2 million loss for the 12 months ended March 31st, its last financial year.
The company earned a €61 million profit in the financial year ended March 31st, 2020. Rental income from the offices it leases to tenants and movements in those properties’ values determine Hibernia’s profits and losses.