Irish Residential Properties REIT plc: Q3 Trading Update

DJ Q3 Trading Update

Irish Residential Properties REIT plc (IRES) 
Q3 Trading Update 
22-Nov-2024 / 07:00 GMT/BST 
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Irish Residential Properties REIT plc 
 
Q3 Trading Update 
 
Continued strong operational delivery, good progress against strategic initiatives 
 
22 November 2024, Dublin | Irish Residential Properties REIT plc ("the Company" or "I-RES"), Ireland's largest provider 
of private rental accommodation, today provides a trading update for the three months ending 30 September 2024 (the 
"third quarter" or "Q3"), along with a progress update on initiatives announced as part of the Company's Strategic 
Review ("the Strategic Review"), which concluded in August. 
 
 
Operating Highlights 
 
   -- Occupancy levels across the portfolio continue to remain strong and stood at 99.4% at 30 September 2024 
  (30 June 2024: 99.6%). Market leading occupancy reflects the high quality of our properties, the efficiency of our 
  operating platform, and the exceptional demand for rental properties in Dublin. 
 
   -- The Company remains on course to deliver a full-year 2024 Net Rental Income ("NRI") margin broadly in 
  line with the margin reported in the first half of the year (H1 2024: 76.5%), which includes the impact of 
  strategically identified disposals completed during the year. 
 
   -- The Company remains in a strong financial position, underpinned by a robust balance sheet. Reflecting the 
  impact of the below disposals, LTV1 has reduced to 45.0% at 21 November 2024 (45.4% at 30 June 2024), well below 
  the 50% limit set out by the Company's debt covenants and Irish REIT legislation. 
 
 
Progress on Strategic Review Initiatives 
 
   -- The Company has made significant progress in advancing Strategic Review initiatives, including as 
  follows: 
   - The Company has now completed the disposal of 37 units in total as part of the previously announced 
    target of 315 units, selling 20 assets in line with book value in a bulk sale and selling a further 17 units to 
    individual purchasers achieving sales premiums2 of c. 25%. 
   - Completion of the investment sale of 25 units outside of the 315-unit programme, also in line with 
    book values2. 
   - The Company expects to complete the disposal of at least a further 50 units in 2025, at an average 
    sales premium2 of between 15% and 20%. 
   - In total, the above disposals are expected to generate total gross sales proceeds of between EUR35 and 
    EUR37 million. 
   - Based on the initial success of the programme, the Company is actively reviewing how best to 
    accelerate and increase the scale of the programme where value for shareholders can be achieved in line with 
    strategic objectives and good asset management. 
 
 
   -- The Company is in the early stages of implementing additional income generating and cost reduction 
  initiatives as identified in the Strategic Review and has successfully executed initiatives across c. 4% of the 
  portfolio, with an expected annualised NRI increase of 8-10% for these units. 
 
   -- The Company has now completed a strategic exit from the Cork market. This is an important step towards 
  improving cost structures and margins. Focusing on the greater Dublin area maximises efficiencies and the future 
  operating leverage of the Group. 
 
 
Capital Allocation 
 
   -- The Board remains committed to maximising value for shareholders and addressing the discount between the 
  Company's current market capitalisation and Net Asset Value. In line with this objective, proceeds from the 
  previously announced asset recycling programme are expected to be deployed towards: 
   - Continuing to actively manage LTV within the Board's target range of between 40% and 45%, and 
    subsequently; 
   - Prioritising excess capital towards enhancing shareholder returns through an efficient return of 
    capital to shareholders. 
 
 
   -- Management will continue to concentrate on the above value accretive capital allocation strategies for so 
  long as the share price trades at a steep discount to Net Asset Value. 
 
   -- The Company expects to provide shareholders with a further update on progress around the scale of excess 
  capital and how it will be deployed in relation to the above initiatives at the release of the 2024 full year 
  results in February 2025. 
 
 
Eddie Byrne, CEO of I-RES, commented: 
 
"We are pleased to report strong progress with our strategic review initiatives and are encouraged by the positive 
momentum of the business. The execution of our recycling programme is ahead of our expected timeframe and will further 
strengthen our financial position. While we will continue to consider all opportunities to enhance shareholder value, 
we are confident about the long-term market opportunity which is underpinned by our high-quality portfolio and market 
leading operating platform." 
 
 
 
1 LTV net of cash based on portfolio valuation at 30 June 2024 
2 Based on 30 June 2024 book values 
END 
For further information please contact: 
For Investor Relations: 
Irish Residential Properties REIT plc 
Luke Ferriter, Director Investor Relations  [e-mail]  Tel: [phone] 
Eddie Byrne, Chief Executive Officer         Tel: [phone] 
 
For Media Queries: 
Jonathan Neilan, FTI Consulting  [e-mail]  Tel: [phone] 
Sam Moore, FTI Consulting   Tel: [phone] 
 
About Irish Residential Properties REIT plc 
Irish Residential Properties REIT plc ("I-RES") is a growth oriented Real Estate Investment Trust providing quality 
professionally managed homes in sustainable communities in Ireland. The Group owns 3,672 apartments and houses for 
private rental in Dublin. I-RES aims to be the provider of choice for the Irish living sector, known for excellent 
service and for operating responsibly, minimising its environmental impact, and maximising its contribution to the 
community. The Company's shares are listed on Euronext Dublin. Further information at www.iresreit.ie. 
 
 
This note applies if and to the extent that there are forward-looking statements in this Announcement. 
 
This Announcement may contain forward-looking statements, which are subject to risks and uncertainties because they 
relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar 
expressions concerning matters that are not historical facts. Such forward-looking statements involve known and unknown 
risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company 
or the industry in which it operates, to be materially different from any future results, performance or achievements 
expressed or implied by such forward-looking statements. The forward-looking statements referred to in this paragraph 
speak only as at the date of this Announcement. Except as required by law or by any appropriate regulatory authority, 
the Company will not undertake any obligation to release publicly any revision or updates to these forward-looking 
statements to reflect future events, circumstances, unanticipated events, new information or otherwise. 
 
 
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Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
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ISIN:      IE00BJ34P519 
Category Code: TST 
TIDM:      IRES 
LEI Code:    635400EOPACLULRENY18 
OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State 
Sequence No.:  360663 
EQS News ID:  2035991 
 
End of Announcement EQS News Service 
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November 22, 2024 02:00 ET (07:00 GMT)