Dublin-listed property group Hibernia REIT said 95.5% of rent due from its tenants for the second quarter of the year had been collected by July 8.

The group mainly operates in the office market and said that commercial rent represents about 90% of its total contracted rent.

In a trading update, Hibernia REIT said that 3.5% of rent due was deferred and was expected to be paid this month while 1% remains unpaid. 

The company said its office buildings remain open, adding that it was seeing early signs of growing occupancy as staff begin to return to the office.

"We continue to engage with our tenants and provide support on a case by case basis," Hibernia said.

On residential rents -which represent about 10% of Hibernia's contracted rent - it said it had collected 95% of rents by July 8.

The occupancy rate of its residential units was 93%, it noted.

"At the same point in both May and June 96% of monthly contracted rent had been collected and the occupancy rate was 94%.  We have now collected 99% of May and June rent," the company stated.  

Commenting on today's update, Goodbody Stockbrokers said they were "buoyed" by the healthy engagement levels between landlord and tenant which has supported tenants moving from a deferred rental status to monthly payment, ensuring a stronger rent collection outcome for Hibernia. 

"This provides comfort for our earnings projections for FY21 and our recently upgraded dividend forecasts of 5.2 cent," the stockbrokers added. 

Meanwhile, Investec said that uncertainty around the Dublin office market clearly remains elevated, but Hibernia REIT entered the crisis with a tight vacancy rate, strong demand and a new supply pipeline that was largely re-let.

"Leasing activity has understandably slowed but there have been encouraging reports of some transactions progressing, notably again in the tech and State sectors," the stockbrokers said.