Real estate investment trust Hibernia REIT has reported profits after tax of €21.2m for the six months to the end of September as the value of its portfolio inched 0.4% higher to total €1,450.4m.

Hibernia REIT said it was seeing a pick-up in activity in the Dublin office market since May.

It noted particular interest in prime, Environmental, Social, and Corporate Governance (ESG) efficient, city centre space.

"While the Government's decision to advise a temporary return to working from home is likely to impact activity in the near-term, with our clear strategy, an exciting development pipeline ready to start in 2022 and the team and funding in place to deliver it, we remain optimistic about our longer-term prospects," it said.

During the six month period, Hibernia said it completed the 2 Cumberland Place and 50 City Quay schemes, which delivered 62,500 square feet of new office space.

It also said it was also in advanced talks about a substantial pre-let to KPMG of the Harcourt Square development.

The company also sold Dockland Central, one of its less energy efficient properties, for €152.3m in October, with the proceeds expected to be recycled into the delivery of the Clanwilliam Quarter and Harcourt Square developments.

It also said it continued to see high rent collection rates and increased contracted rent in the period from letting activity. 99% of rents due for the six months to the end of September were received or on agreed payment terms, it added.

Its annual contracted rent came to €68.2m at the end of September, up 1.5% since March.

"We are making good progress with our strategic priorities of asset clustering and ESG excellence, with the key achievements since March 2021 being the completion of the 2 Cumberland Place and 50 City Quay developments and the sale of Dockland Central," Kevin Nowlan, chief executive of Hibernia, said.

"Our business continues to perform well, with strong rent collection, a stable portfolio valuation and new lettings agreed supporting an interim dividend of two cent per share, the same as last year," Mr Nowlan added.