REG-Irish Residential Properties REIT plc Results for the Year Ended 31 December 2024
20/02/2025 07:15
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Irish Residential Properties REIT plc (IRES)
Results for the Year Ended 31 December 2024
20-Feb-2025 / 07:00 GMT/BST
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20 February 2025
Final Results
Irish Residential Properties REIT Plc
RESULTS FOR THE YEAR ENDED 31 DECEMBER 2024
Earnings growth underpinned by strategic progress
Key Highlights
• A return to earnings growth with Adjusted EPRA earnings increasing 1.4% and Adjusted Earnings (excluding fair
value movements) growing to €30.5 million, an increase of 8.7% in 2024.
• An intention to return excess capital and commence a share buyback programme with a maximum aggregate
consideration of up to €5 million.
• Disposal programme progressing well with 66 disposals completed during the year generating total gross proceeds of
c. €19 million, and a €1.6 million gain versus book value achieved through 21 individual unit sales.
• In the second half of 2024, yields stabilised resulting in like for like valuations broadly in line with 30 June
2024.
Irish Residential Properties REIT plc (“I-RES” or the “Company”), the leading provider of rental homes in Ireland,
today issues its annual results for the twelve month period from 1 January 2024 to 31 December 2024.
Eddie Byrne, I-RES’ Chief Executive Officer, said:
“2024 has been a year of solid progress for I-RES. Following the conclusion of our Strategic Review in August, we
delivered improvements across key performance metrics, including achieving earnings growth in 2024. Our ongoing asset
recycling programme remains a key value driver, delivering strong sales premiums, improving portfolio composition, and
providing us with excess capital to deploy against our menu of accretive growth options, including through the share
buyback programme which we intend to launch shortly. Looking ahead, our clear focus is to maximise value for
shareholders through the implementation of our strategic initiatives. We will also continue to engage constructively
and consistently with Government as it reviews the rental regulations. As an Irish long-term investor with permanent
capital at our disposal, we are uniquely positioned to navigate the evolving market landscape and deliver sustainable
growth into the future.”
Financial and Operational Highlights
• Earnings growth of 1.4% for the year with Adjusted EPRA earnings of €28.9 million (2023: €28.5 million) and
adjusted EPRA EPS of 5.5 c (2023: 5.4c). Adjusted Earnings (excluding fair value movements) growth of 8.7% to
€30.5 million in 2024 (2023: €28.1 million), reflecting the success of our ongoing asset recycling programme in
generating sales premia significantly ahead of book values.
• The portfolio continues to be effectively fully occupied at 99.4% (31 December 2023: 99.4%) which reflects both
our highly effective operating platform and the continued strong underlying demand for high quality rental
properties in Dublin.
• Like-for-like revenue growth of 1.7% in 2024, driven by both organic rental increases and ancillary revenue
through new initiatives across the portfolio despite HICP being persistently below the 2% cap throughout H2.
Reported revenue for the period of €85.3 million reduced by 2.9% versus prior year, reflecting the impact of 66
unit disposals successfully completed in 2024 as part of our ongoing asset recycling programme and the disposal of
c. 5% of the portfolio in H2 2023.
• Delivered a Net Rental Income (“NRI”) margin of 76.8% for 2024 (2023: 77.3%), with NRI margin in H2 incrementally
improving compared to H1. NRI for the year of €65.5 million reduced by 3.6% versus the prior period, driven by the
impact of our ongoing asset recycling programme and 2023 H2 disposals. On a like for like basis NRI margins were
broadly in line with 2023, reflecting the impact of rigorous cost management initiatives in the period and
moderating inflation in Ireland during 2024.
• Financing costs reduced by 12.4% to €23.4 million, reflecting both the deployment of disposal proceeds to reduce
variable debt and the impact of a reducing global interest rate environment.
• Non-recurring costs of €3.4 million were recorded during the year, with the majority relating to Shareholder
Activism and the completion of the Strategic Review which concluded in August.
• Disposals under the Company’s Strategic Review initiatives were strong, both in terms of the number of units sold
at 66 and the premium achieved against book of c. 25% or €1.6m for the 21 units which were sold individually.
• The Company recorded a loss before tax of €6.7 million for the year driven by a yield expansion of c. 20bps in H1
which resulted in a non-cash fair value reduction for the year of €33.7 million. This resulted in an IFRS NAV per
share of 126.2 cents at 31 December 2024 (31 December 2023: 131.7 cents).
Balance Sheet and Capital Allocation
• As at 31 December 2024, I-RES’ portfolio had a total value of €1,232 million (31 December 2023: €1,274 million)
with the change in the period primarily driven by asset disposals and a fair value reduction due to expansion of
yields in H1 partially offset by positive net rental growth. In the second half of the year yields have stabilised
resulting in like-for-like valuations broadly in line with 30 June 2024.
• The portfolio maintained its EPRA net initial yield of 5.1% in line with 5.1% at 30 June 2024 and compared to 4.9%
at 31 December 2023. Stable yields in H2 reflect the wider residential market dynamics in Ireland and the impact
of cost reduction initiatives on asset profitability.
• Net LTV stood at 44.4% at 31 December 2024, down from 45.4% at 30 June 2024, at the higher end of internal targets
but is comfortably below our debt covenants and the limits set by Irish REIT legislation.
• Proceeds from the ongoing asset recycling programme are expected to be deployed towards continuing to actively
manage LTV within the target range of 40% to 45%. Thereafter we will prioritise excess capital towards enhancing
shareholder returns through an efficient return of capital to shareholders.
• Consistent with the above capital allocation strategy and also recognising the current discount between the
Company’s share price and its Net Asset Value per share, the Company today confirms its intention to return excess
capital through a share buyback programme with a maximum aggregate consideration of up to €5 million. The quantum
is funded by the Company’s excess reserves and represents the premium to book that the Company has achieved in
2024 and expects to achieve over the next 15 months from its asset recycling programme and is broadly the maximum
that can be acquired at present in an efficient manner and in line with our capital allocation strategy outlined
above.
• In line with Irish REIT legislation, the Board intends to declare a dividend of 2.20 cents per share for the six
months ended 31 December 2024, bringing the total dividend for 2024 to 4.08 cents per share, in line with the
requirements of Irish REIT legislation and representing the company’s dividend policy of paying out 85% of EPRA
earnings.
Continued Progress on Strategic Review Initiatives
• The Company completed the disposal of 41 units in total in 2024 as part of the previously announced target of 315
units across a 3-5 year period, selling 21 individual units achieving sales premiums on average of c. 25% and a
further 20 units in line with book value through a bulk sale. We also completed the bulk sale of a further 25
units outside of the 315-unit programme, also in line with book values. Together this takes the total number of
units disposed of to 66 in 2024. Disposals completed during the year generated total gross proceeds of c. €19
million and a €1.6 million gain versus book value.
• The Company expects to complete the disposal of at least a further 50 units in 2025, at an average sales
premium of between 15% and 20%, generating total gross proceeds of c. €18 million. As at 31 December 2024, the
Company had 13 units in a sales process which we expect to complete in the coming months.
• The Company is implementing additional income generating and cost reduction initiatives as identified in the
Strategic Review and to date has successfully executed initiatives across c. 6% of the portfolio, with an expected
annualised NRI increase of 8-10% for these units. We continue to review which other units in the portfolio could
also benefit from similar initiatives and will continue to build on our progress in 2025.
• The Company 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.
• Following the Irish general election in November 2024 the Company has continued to advocate for the advancement of
a new regulatory system that gives protection and certainty to renters while also delivering a viable investment
case for the development of new private rental accommodation at scale to address the chronic undersupply of rental
housing which currently exists in the Irish market. The Company welcomes the Irish government’s commitment in the
Programme for Government to encourage institutional investment, continue with its commitment to review rent
regulations and attract private capital to its STAR scheme.
Outlook
• The Company remains well placed to deliver on its strategic objectives, drive growth and shareholder value with
long term structural drivers of growth continuing to drive demand for rental accommodation coupled with an
improving economic landscape.
• The Company will continue to focus on executing strategic initiatives to maximise shareholder value whilst also
continuing to pursue revenue generating and cost reduction initiatives, with a strong focus on optimising the
operational performance of the business.
• The Company will maintain a disciplined approach to capital allocation, focusing on long-term value creation,
balance sheet management, while seeking to deliver attractive returns to shareholders through the ongoing ordinary
dividend, supplemented by periodic returns of excess capital.
• A new Government with a significant majority was elected in January 2025 on a five-year mandate, which is positive
news for the real estate sector as a long-term focus is necessary for housing policy. There is an improving
sentiment from policy makers towards implementing a more balanced regulatory structure aimed at delivering more
homes while protecting renters, as outlined in the Programme for Government.
Financial Highlights
For the year ended 31 December 2024 31 December 2023 % change
Operating Performance
Revenue from Investment Properties (€ millions) 85.3 87.9 (2.9%)
Net Rental Income (€ millions) 65.5 67.9 (3.6%)
Adjusted EBITDA (€ millions) (1) 53.2 56.0 (5.0%)
Financing costs (€ millions) (23.4) (26.7) 12.4%
Adjusted EPRA Earnings (€ millions)(1) 28.9 28.5 1.4%
Deduct: Non-recurring costs (€ millions)(2) (3.4) (0.9)
EPRA Earnings (€ millions)(1) 25.5 27.6 (7.5%)
Adjusted EPRA Earnings (€ millions)(1) 28.9 28.5
Add: Gain/(loss) on disposal of investment property (€ millions) 1.6 (0.4)
Adjusted Earnings (excluding fair value movements) (1) 30.5 28.1 8.7%
Decrease in fair value revaluation of investment properties
(33.7) (141.8)
(€ millions)
Loss before tax (€ millions) (6.7) (114.5)
Basic EPS (cents) (1.3) (21.9)
EPRA EPS (cents) 4.8 5.2 (7.5%)
Adjusted EPRA EPS (cents)(1) 5.5 5.4 1.4%
Interim Dividend per share (cents) 1.88 2.45
Proposed Dividend per share (cents) 2.20 2.00
Proposed Full Year Dividend (cents) 4.08 4.45 (8.3%)
Portfolio Performance
Total Number of Residential Units 3,668 3,734 (1.8%)
Overall Portfolio Occupancy Rate(1) 99.4% 99.4%
Overall Portfolio Average Monthly Rent (€)(1) 1,814 1,774 2.3%
As at 31 December 2024 31 December 2023 % change
Assets and Funding
Total Property Value (€ millions) 1,232.2 1,274.4 (3.3%)
Net Asset Value (€ millions) 668.2 697.3 (4.2%)
IFRS Basic NAV per share (cents) 126.2 131.7 (4.2%)
Group Net LTV 44.4% 44.3%
Gross Yield at Fair Value(1) 7.0% 6.7%
EPRA Net Initial Yield(1) 5.1% 4.9%
Other
Market Capitalisation (€ millions) 481.9 587.7
Total Number of Shares Outstanding 529,578,946 529,578,946
Weighted Average Number of Shares – Basic 529,578,946 529,578,946
(1) For definitions, method of calculation and other details, refer to the Business Review, Business Performance
Measures and Glossary
(2) The non-recurring costs of €3.4 million were incurred in relation to dealing with Shareholder Activism & EGM of
€1.5 million, completion of the Strategic Review of €1.1 million and abortive transaction costs of €0.8 million (31
December 2023: €0.9 million relating to Shareholder Activism). The general and administrative costs of €15.3 million
reflected in the Consolidated Financial Statements for the year ended 31 December 2024 (31 December 2023: €12.7
million) contain the non-recurring costs and €11.9 million of recurring general and administrative expenses (2023:
€11.7 million).
For further information please contact:
Investor Relations:
Eddie Byrne, Chief Executive Officer Tel: +353 (1) 5570974
email: 1 investors@iresreit.ie
Media enquiries:
Cathal Barry, Drury
Tel: +353 (0) 87 227 9281
Gavin McLoughlin, Drury Tel:
+353 (0) 86 035 3749
email: iresreit@drury.ie
Results Presentation: webcast and conference call details:
I-RES will host a live audio webcast and conference call of the results presentation this morning at 09:00am BST.
Access details are listed below:
Ireland: 1 800 816 490
UK: +44 20 3936 2999
Global Dial-In Numbers: click 2 HERE
Access Code: 797552
Webcast Link: 3 HERE
This report and a copy of the presentation slides will also be available to download on the investor relations section
of the I-RES website at 07:00am BST: 4 https://www.iresreit.ie/investors
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. 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 5 www.iresreit.ie.
Forward-Looking Statements
This Report includes statements that are, or may be deemed to be, forward-looking statements. These forward-looking
statements can be identified by the use of forward-looking terminology, including the terms “may”, “will”, “should”,
“expect”, “anticipate”, “project”, “estimate”, “intend”, “continue”, “maintain”, “forecast”, “potential”, “target” or
“believe”, or, in each case, their negative or other comparable terminology, or by discussions of strategy, plans,
objectives, trends, goals, projections, future events or intentions. Such forward-looking statements are based on the
beliefs of management as well as assumptions made and information currently available to the Company. Forward-looking
statements speak only as of the date of this report and save as required by law, the Irish Takeover Rules, the
Euronext Dublin Listing Rules and/or by the rules of any other securities regulatory authority, the Company expressly
disclaims any obligation or undertaking to release any update of, or revisions to, any forward-looking statements or
risk factors in this report, including any changes in its expectations, new information, or any changes in events,
conditions or circumstances on which these forward-looking statements are based. Due to various risks and
uncertainties, actual events or results or actual performance of the Company may differ materially from those
reflected or contemplated in such forward-looking statements. No representation or warranty is made as to the
achievement or reasonableness of and no reliance should be placed on, such forward-looking statements. There is no
guarantee that the Company will generate a particular rate of return.
Business Review
Incremental improvement across key performance metrics
The Company delivered a strong financial and operational performance in 2024, making progress against strategic
objectives and delivering incremental improvements across numerous key performance indicators particularly in the
second half of the year. Our high-quality portfolio of modern and sustainable properties remained fully occupied at
the end of the year at 99.4%, reflecting the consistent efficiency of our property management operations, the
mid-market positioning of our assets, and the continued strength of demand in the Irish Private Rental Sector (“PRS”)
market.
Revenue, on a like-for-like basis, increased by 1.7% in the period, with organic revenue increases supplemented by
ongoing initiatives to increase ancillary revenue streams. Organic annual rental increases in Ireland, which are
limited to the lower of 2% or the Harmonised Index of Consumer Prices (“HICP), were impacted by the lower rate of
prevailing HICP inflation in H2, which remained in the range of 0% and 1.5% since June 2024. Reported revenue for the
year reduced by 2.9% to €85.3 million, driven by the impact of disposing of 66 units in 2024 which were completed as
part of our ongoing asset recycling plan and the disposal of c. 5% of our portfolio completed during the second half
of 2023.
On a like-for-like basis, Net Rental Income (“NRI”) increased by 1.7% for the year. NRI margin for 2024 was 76.8%
(2023: 77.3%) with this increasing from 76.5% in H1 despite disposals completed in H2. As highlighted by this H2
margin performance, we are implementing additional income generating and cost management initiatives to improve the
profitability of our assets and we continue to review which other units in the portfolio could also benefit from
similar initiatives.
Building on our progress in 2023 of rolling out our Resident App (I-RES Living), we launched our new corporate and
resident websites during 2024, further assisting in streamlining tenant engagement. Whilst we experienced operating
cost inflation in areas such as staff costs, we have also been impacted by Employment Regulation Orders (EROs) which
are focused on the contract cleaning and security industries. We have managed to offset the majority of these
inflationary impacts through reduced expenditure on utilities (reduced consumption and pricing), stable OMC service
charges and repairs and maintenance costs, and strong collections during the period in excess of 99%.
Adjusted G&A expenses include costs such as employees’ salaries, director fees, professional fees for audit, legal and
advisory services, depository fees, property valuation fees, insurance costs and other general and administrative
expenses, and excludes non-recurring costs. In 2024 costs increased by 1.6% with the increase driven by costs
associated with the launch of our new corporate and resident websites and Chair and CEO recruitment costs.
Financing costs, which include the amortisation of certain financing expenses, interest and commitment fees, reduced
by 12.4% in the period to €23.4 million from €26.7 million. The primary driver of the decreased financing costs
relates to lower debt levels, post successful completion of the asset disposal programme in 2023 alongside the ongoing
asset recycling programme. The weighted average cost of interest for the period was 3.79% compared with 2023 at 3.85%.
In January 2024, I-RES reduced the overall facility size of the Revolving Credit Facility (“RCF”) from €600 million to
€500 million which has generated commitment fee savings during the year.
The Company delivered growth of 1.4% in adjusted EPRA earnings at €28.9 million and adjusted EPRA EPS of 5.5c during
2024, driven by ancillary revenue initiatives, rigorous cost management programmes, and lower finance costs. Reported
EPRA earnings of €25.5 million and reported EPRA EPS of 4.8c reduced by 7.5% owing to the impact of non-recurring
charges recorded in the period. Adjusted Earnings (excluding fair value movements) increased 8.7% from €28.1 million
to €30.5 million.
Non-recurring costs totalled €3.4 million in 2024. These costs related primarily to Shareholder Activism of €1.5
million and the Strategic Review which concluded in August at a cost of €1.1 million. In addition, in H2, the Company
terminated the contract to forward purchase 44 units in Ashbrook, Clontarf as the vendor did not achieve practical
completion by the Longstop Practical Completion Date.
I-RES recognises its investment properties at fair value at each reporting period, with any unrealised gain or loss on
remeasurement recognised in the profit or loss account. In the period, the fair value loss recorded on investment
properties was €33.7 million, reflecting yield expansion in the wider Irish residential market in the first half of
the year and was the driver for the recorded loss before tax of €6.7 million. We are encouraged by the yield
stabilisation witnessed in the market in H2 following two years of expansion. Yield movements in the period were
offset by continued positive rental growth, along with cost reduction measures, which have improved the profitability
of certain assets. Our Gross Yield was 7.0% at period end, well in excess of our weighted average cost of interest of
3.79%.
Yields
As at 31 December 2024 31 December 2023
Gross Yield at Fair Value 7.0% 6.7%
EPRA Net Initial Yield 5.1% 4.9%
Our average monthly rent increased to €1,814 from €1,774 at 31 December 2023 representing an increase of 2.3%
reflecting continued strong organic growth and the optimisation of the portfolio, through the selective disposal of
underperforming and lower quality assets. Despite this our portfolio is currently estimated to be 18% below market
rent. Occupancy of 99.4% (2023: 99.4%) reflects an effective full occupancy rate which is supported by our mid-market
residential sector positioning and continues to highlight the supply/demand imbalance in the market.
AMR and Occupancy
Properties owned prior to
Total Portfolio 31 December 2023
(Like for Like properties)
2024 2023 2024 2023
As at 31 December AMR Occ. AMR Occ. AMR Occ. AMR Occ. AMR change %
AMR change %
% % % %
Residential €1,814 99.4% €1,774 99.4% 2.3% €1,814 99.4% €1,779 99.4% 1.9%
Operational and Financial Results
Net Rental Income and Profit for the year ended
31 December 2024 31 December 2023
€'000 €'000
Operating Revenue
Revenue from investment properties 85,273 87,854
Operating Expenses
Property taxes (1,110) (1,168)
Property operating costs (18,708) (18,772)
(19,818) (19,940)
Net Rental Income ("NRI") 65,455 67,914
NRI margin 76.8% 77.3%
Adjusted general and administrative expenses (11,935) (11,747)
Share-based compensation expense (305) (153)
Adjusted EBITDA 53,215 56,014
Non-recurring costs (3,411) (939)
Depreciation of property, plant and equipment (591) (536)
Lease interest (296) (212)
Financing costs (23,389) (26,695)
Taxation (15) (47)
EPRA Earnings 25,513 27,585
Addback: Non-recurring costs 3,411 939
Adjusted EPRA Earnings 28,924 28,525
Gain/(Loss) on disposal of investment property 1,622 (418)
Adjusted Earnings (excluding fair value movements) 30,546 28,107
Non-recurring costs (3,411) (939)
Net movement in fair value of investment properties (33,745) (141,791)
Gain on derivative financial instruments (104) 86
Taxation 38 (1,476)
Loss for the Year (6,676) (116,014)
Balance Sheet and Capital Structure
Our total investment property value at 31 December 2024 was €1,232.2 million (including assets held for sale). This
represents a 3.3% reduction compared to the prior year. Factors contributing to the movement in value include the
impact of the disposal of 66 units (c. 2% of units in the portfolio) as part of our ongoing asset recycling programme
and yield expansion primarily in H1. Offsetting these movements were continued positive rental growth and capital
investments made to maintain the high-quality properties within our portfolio. We continue to reinvest in our
portfolio of assets, to ensure we maintain our exceptional levels of occupancy and tenant demand, whilst future
proofing our assets.
I-RES seeks to use gearing to enhance shareholder returns over the long term. I-RES takes a proactive approach to its
debt strategy to ensure the Group has laddering of debt maturities and the Group’s leverage ratio and interest
coverage ratio are maintained at a sustainable level.
Our capital structure remains strong, with no debt maturities before 2026 and laddering out to 2032 thereafter. Net
LTV at 31 December 2024 stood at 44.4%, down from 45.4% at 30 June 2024 and broadly in line with 31 December 2023 of
44.3%. Our leverage level remains well below the 50% maximum allowed by the Irish REIT regime and the Group’s debt
financial leverage ratio covenant.
Our debt facilities are made up of our €500 million RCF and the c. €200 million (Euro Equivalent) Private Placement
Notes. The remaining undrawn committed facilities are c. €145 million.
The Private Placement Notes were issued in March 2020 and are made up of €130 million and $75 million notes. On
closing I-RES entered into a cross-currency interest rate swap resulting in an overall weighted average fixed interest
rate of 1.92% inclusive of swap costs and excluding transaction costs for the full principal of the notes. The
maturity of the notes is laddered over circa six, nine and eleven years, with the first repayment due in March 2027.
Drawn debt facilities are predominantly hedged against interest rate volatility, with 85% of the debt fully fixed. The
Group has a weighted average drawn debt maturity of 2.3 years and no debt maturities before 2026. The weighted average
cost of interest is 3.79% for 2024 (31 December 2023: 3.85%).
The IFRS NAV per share is 126.2c, down from 131.7c at 31 December 2023. This is primarily driven by the fair value
reduction of our properties in H1 2024, although in the second half of the year yields have stabilised resulting in
like for like valuations broadly in line with 30 June 2024 (IFRS NAV per share 126.4c).
As at 31 December 2024 31 December 2023
€'000 €'000
RCF Borrowings 355,870 373,020
Euro denominated Private Placement notes 130,000 130,000
USD denominated Private Placement notes(1) 72,415 67,892
Weighted Average Cost of Interest(2) 3.79% 3.85%
Progress Against Strategic Review initiatives
In August, the Company concluded its Strategic Review which commenced in February and explored all strategic options
available to maximise value for shareholders. The Review was overseen by a Board sub-Committee, led by Chair Hugh
Scott-Barrett, and including CEO Eddie Byrne and non-executive directors Denise Turner, Philip Burns and Richard
Nesbitt. The Board sub-Committee was supported by international financial and real estate advisors.
The Board unanimously concluded in August 2024 that a sale of the Company or its assets would be unlikely to maximise
shareholder value. Following the conclusion of the Strategic Review, the Board remains committed to regularly and
carefully assessing the suitability of our strategic direction for prevailing market conditions and remains open
minded to all the options analysed as part of the Review including the sale of the Company.
The Strategic Review identified several initiatives which the Board feels will drive value maximisation for
shareholders over the medium-term, and the Company has continued to work on those initiatives in the second half of
the year and has made the following progress.
Asset Recycling Programme
In 2024, the Company has completed the disposal of 41 units in total as part of the overall disposal target of 315
units, selling 20 assets in line with book value in a bulk sale and selling a further 21 units to individual
purchasers achieving sales premiums on average of c. 25%. An investment sale of 25 units outside of the 315-unit
programme was also completed in line with book values. Together this takes the total number of units disposed of to 66
in 2024 generating total gross proceeds of c. €19 million.
The Company expects to complete the disposal of at least a further 50 units in 2025, at an average sales premium of
between 15% and 20%, generating total gross proceeds of c. €18 million. At 31 December 2024, 13 units are in a sales
process which we expect to complete in the coming months.
Asset Recycling Programme 31 December 2024
Total 315
Completed Disposals (41)
Remaining 274
Revenue and Cost Initiatives
In the second half of the year the Company has implemented additional income generating and cost reduction initiatives
across c. 6% of the portfolio and we continue to review which other units in the portfolio could also benefit from
similar initiatives. The impact of these initiatives began to impact the NRI margin in H2, aiding the full year margin
outturn of 76.8% which was up from 76.5% in H1 despite asset disposals completed in H2. The Company is committed to
continuing its rigorous cost control measures to improve the profitability of our assets.
As part of the Strategic Review, we assessed the current internalised operating model versus an outsourced model. Our
analysis highlighted that the current operating model is the optimal model for I-RES. This conclusion was arrived at
for a number of reasons including cost efficiencies (VAT leakage on outsourced model), operating providers’
capabilities (limited number of providers who could operate such a portfolio), a reduction in key KPI’s (occupancy and
collections) and strategic focus (internal resources focused on I-RES).
The Company also completed a strategic exit from the Cork market in the second half of the year. This is an important
step towards improving cost structures and margins moving forward. Focusing on the greater Dublin area maximises
efficiencies and the future operating leverage of the Group.
Public Policy Initiatives
A new Government with a significant majority was elected in January 2025 on a five-year mandate, which is positive
news for the real estate sector as a long-term focus is necessary for housing policy. The Company has continued to
advocate for a balanced regulatory system aimed at delivering more homes while still protecting renters and
simultaneously attracting institutional capital to address the chronic undersupply of housing which currently exists
in the Irish market. The Company welcomes the Irish Government’s commitment in the Programme for Government to
encourage institutional investment, continue with its commitment to review rent regulations and attract private sector
capital to its Secure Tenancy Affordable Rental (“STAR”) scheme.
The Board believes the current REIT structure offers shareholders advantages over non-REIT structures, including
increased liquidity, tax efficiency, and access to the exceptional dynamics of the Irish PRS market. However, certain
elements of the Irish REIT structure remain restrictive when compared to other European countries, and the Company
will continue to maintain active engagement with policymakers and advocate for reform.
Capital Allocation
As outlined by the Company in the Q3 Trading Update announcement released on 22 November 2024, 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 ongoing 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.
Proceeds realised from the disposal programme enabled the Company to successfully maintain Net LTV within the target
range at the end of 2024 (44.4%) while continuing to reduce higher cost debt during the period. Financing costs
reduced by 12.4% during 2024 to €23.4 million (2023: €26.7 million).
The Company has also been pleased with initial progress on the asset disposal programme during 2024, in particular
disposals of units to individual purchasers which have successfully delivered strong sales premiums compared to book
values.
Therefore, having satisfied the first objective of the capital allocation strategy through prudently maintaining the
Company’s LTV level within the target range and retiring higher cost debt, the Board has given consideration to an
appropriate means of returning excess capital to shareholders in a tax efficient manner and is pleased to announce its
intention to commence a share buyback programme with a maximum aggregate consideration of up to €5 million. The Board
believes a share buyback is an appropriate method to return excess capital at this time, given the reduction in share
capital would be both accretive to earnings and net asset value per share. A further announcement will be released by
the Company in due course upon the formal commencement of this share buyback programme.
The Board will continue to monitor the capital allocation strategy for the Group, taking into account the prevailing
market environment and the appropriate use of the Company’s funds to best deliver on the long-term objective of
maximising value for shareholders. In light of the current market environment and taking account of the current steep
discount between the Company’s share price and its Net Asset Value per share, the Board believes it is appropriate to
continue to focus on the above value accretive allocation strategies.
Dividend
In line with Irish REIT legislation, the Board intends to declare a dividend of 2.20 cents per share for the six
months ended 31 December 2024, bringing the total dividend for 2024 to 4.08 cents per share, in line with the
requirements of Irish REIT legislation and representing the company’s dividend policy of paying out 85% of property
income from the property rental business.
Governance
In January the Board announced that Hugh Scott-Barrett had been appointed to succeed Declan Moylan as Chair with
effect from 23 February 2024.
In March the Board announced that Eddie Byrne had been appointed to succeed Margaret Sweeney as CEO with effect from 1
May 2024. Both appointments followed an extensive and rigorous selection process led by international recruitment
consultants, considering both internal and external candidates. On behalf of the Board, we wish both Declan and
Margaret every success for the future.
As part of the Co-Operation Agreement with Vision Capital Corporation (“Vision”), the I-RES Board recommended the
appointment of two Vision nominees, Richard Nesbitt and Amy Freedman at the Company’s AGM in May 2024. Richard and Amy
were elected to the Board on 10 May 2024. Under the Company’s constitution the maximum permitted number of Directors
on the Board is nine. To facilitate the appointment of the two Vision nominees, the Company’s executive director Brian
Fagan did not seek re-election to the Board at the 2024 AGM, thus ensuring the Board continues to meet its
independence requirements in line with best practice corporate governance. Mr Fagan’s position as CFO was not impacted
by this change.
In May 2025 Phillip Burns, having served nine years on the Board, will not seek re-election as a non-executive
director at the Company’s Annual General Meeting. We are grateful to Phillip for his outstanding contributions and
commitment to the Board and its Committees and the Board would like to wish him every success for the future. Board
size is a matter that the Nomination Committee keeps under continuous review. The Board is of the view that a Board of
nine Directors is not optimal for the size of the Company. This is a matter which the Board intend to address as
current Board members retire. In this regard, when Phillip retires in May 2025, the Board does not intend to replace
him on the Board. The Nomination Committee is satisfied that the resulting Board composition will provide a suitable
balance of skills, independence, knowledge and experience.
Outlook
Looking ahead to 2025, the Company will continue to execute strategic initiatives in order to maximise shareholder
value with a focus on crystalising value through the sale of individual units at a premium to book value and
initiatives which boost NRI through increasing revenues and reducing costs. We will also continue to focus on
returning surplus capital to shareholders whilst protecting our balance sheet strength for as long as our share price
trades at a deep discount to NAV.
A significant opportunity exists for the new Irish government to address the country’s housing crisis, by implementing
a system that gives protection and certainty to renters, while also delivering a viable investment case for the
development of new private rental accommodation at scale. Since the formation of the new Irish government in January
2025, we have continued to maintain active engagement with policymakers to advocate for these reforms and will update
shareholders on progress in due course.
Sustainability remains central to our strategy, with a commitment to achieving Net Zero carbon by 2050 and further
investment in renewable energy and smart technologies. We will maintain a disciplined approach to capital allocation,
focusing on long-term value creation and balance sheet management, while seeking to deliver attractive returns to our
shareholders through our ongoing ordinary dividend, supplemented by periodic returns of excess capital when considered
appropriate. We are well-positioned to drive growth and shareholder value and approach the year ahead with confidence.
On behalf of the Board
Hugh Scott-Barrett Eddie Byrne
Non-executive Chairman Chief Executive Officer
20 February 2025
Sustainability
The business continued to make progress on our Environmental, Social and Governance (“ESG”) ambitions through
environmental action and social impact. This was achieved against the backdrop of a dynamic regulatory landscape and
in the midst of a leadership transition with the appointment of a new CEO.
The Irish residential rental market faces increasing scrutiny, with heightened expectations for transparency,
affordability and environmental responsibility. The Board Sustainability Committee has continued its work to embed ESG
principles into our approach and is committed to aligning our efforts with stakeholder expectations, while ensuring
the continued sustainability of our core business. Our vision – to be Ireland’s leading provider of rental housing,
recognised for quality and value, delivering sustainable growth while being a great place to work, and maximising our
contribution to the community, underpins this. Collaboration with stakeholders will remain a cornerstone of our
approach as we address systemic challenges together.
Our three ESG pillars of Operating Responsibly, Protecting the Environment and Building Communities will continue to
shape our efforts, deliver our impact and guide our decision making in 2025.
1. Operating Responsibly
The regulatory landscape for residential property rental evolved significantly in 2024, driven by the emerging
requirements of the EU Corporate Sustainability Reporting Directive (CSRD) that came into effect under Irish Law in
July 2024.
Disclosure & Data
We continue to address current and emerging regulatory requirements including stricter energy efficiency standards and
disclosure requirements. We have been actively working towards disclosing a Sustainability Statement in accordance
with the requirements of the Corporate Sustainability Reporting Directive (CSRD). The Board, in particular through the
Sustainability Committee and the Audit Committee, has played an active role in the CSRD process by inputting into the
double materiality process and, on the recommendation of those two Committees, the Board has endorsed the output. We
will continue the preparations for reporting throughout 2025.
To enable us to meet the evolving reporting requirements and make more informed decisions, we have made further
investment into data capture and analysis. This has included capturing accurate data for resident energy use, building
footprints, waste management, water and supplier footprints. This data collection will also allow us to better capture
inefficiencies in our business which, in addition to allowing us to utilise better environmental solutions, in many
cases will enable us to reduce costs. This will continue to evolve in 2025. To ensure the robustness of our approach,
our ESG data and approach is assured by a third party assessor.
Risk Management
We have developed comprehensive frameworks to identify and mitigate ESG risks. As part of this process in 2023, we
conducted a Carbon Risk Real Estate Monitor (CREMM) assessment to review potential risks of stranded assets and to
help map out our transition to net zero for each property. In 2024 our Cyber Security Steering Group (SSG),
successfully completed a cyber security assessment and updated our Cyber Strategy for 2024-2026, with the goal of
elevating our cyber risk management to a ‘managed’ level of maturity.
Responsible Sourcing
We evolved our responsible sourcing programme in 2024, including issuing a supplier ESG questionnaire to 60 of our
existing supplier partners. In addition, we hosted a sustainability focused supplier education forum in which 40 of
our existing supplier partners participated. The survey and the education forum focused on evaluating our suppliers’
level of alignment with our ESG strategy and priorities, starting the quantification of our scope 3 supply chain
emissions impacts, identifying emission reduction opportunities, and driving collective action towards documented
science-based targets.
Recognition
All of this work culminated in maintaining and improving our ESG ratings, improving from a 2 star to a 3-star rating
with GRESB and a CDP score of B. We also continue to report to the EPRA and maintained our EPRA Gold accreditation for
2024.
2. Protecting the Environment
While we have made significant strides, we acknowledge the challenges of transitioning to a low-carbon economy and are
investing in innovative solutions to overcome them. We are fully committed to achieve Net Zero carbon by 2050 and
continued to measure and report on our organisational footprint.
Carbon Emissions
In 2024, our like-for-like combined scope 1 GHG Emissions (I-RES Headquarters) and Scope 2 GHG emissions (wholly
managed assets) decreased by 12.7% year on year. To reduce our overall carbon footprint, we proactively installed
solar panels in 6 properties, adopted smart home technologies to reduce energy consumption and we enabled car sharing
in 7 properties. 100% of I-RES’ wholly owned asset common areas are powered by renewable energy.
In March 2024, the EU revised the Energy Performance Buildings Directive (EPBD) and introduced stricter energy
performance requirements (BER ratings) for residential properties. Our efforts to meet the EPBD standards included
retrofitting 3 units to improve energy efficiency and BER ratings by 7 steps. This was achieved by upgrading
insulation and installing energy-efficient appliances to meet or exceed these standards. These retrofits were
completed as trials to allow us to identify what opportunities we have for energy efficiency upgrades across our
portfolio. We will continue to assess and roll out this 7-step property improvement approach across our portfolio.
3. Building Communities
Residents
We can deliver significant social value in Ireland – to our team and to our residents. As a provider of residential
spaces and services, our team is deeply connected to local communities. We are fully committed to delivering on the
Five Principles of our Resident Promise – Quality, Peace of Mind, Sustainability, Service and Community and our
initiatives continue to support our 5,000 plus residents.
Employees
Our people are our greatest asset, and we are committed to listening to our employees so that we can continuously
develop our culture and ensure I-RES is a great place to work. Our annual employee survey continues to seek employee
insights to further that aim. Our Diversity & Inclusion (D&I) committee have integrated the broader thinking and
insights into our training, policy development and employee engagement initiatives. In 2024 we celebrated maintaining
our silver status in Diversity & Inclusion from the Irish Centre for Diversity and are actively working on a plan to
achieve gold. We continued our employee training programs focused on ESG principles, ensuring every team member is
aware of and aligned with our ESG vision and key initiatives. Over the course of the last 12 months, we have invested
substantially in our HR function including the appointment of a HR Director sitting on the Senior Leadership Team in
order to ensure that we have appropriate structures in place to allow us to develop career paths for all our staff
through training, learning and development, performance appraisal, reward structures and succession planning. In
addition, we have made a number of changes to our employee policies in areas that enhance I-RES as a great place to
work for all our employees.
Looking Forward
The challenges we face also bring opportunities and remind us of the importance of collaboration and resilience in
creating a sustainable future.
Over 2025 and beyond, we will continue to drive accountability and transparency while promoting sustainable practices
and investments working towards publication of a CSRD aligned Sustainability Statement and the delivery of our Net
Zero Carbon Transition Plan. We will be continuing our focus on carbon reduction initiatives across scope 1, 2 and 3
and measuring our social value impact, and we will continue to support our colleagues in their roles and in our
community initiatives, fundraising, charitable donations and resident engagements.
Market Landscape
Macroeconomic Landscape Remains Positive
In 2024, Ireland's economy demonstrated continued strength, with Modified Domestic Demand growth projected at
3.1% 6 1 . The country's economic performance was bolstered by strong export sectors, particularly technology and
pharmaceuticals. Unemployment remained near record lows at approximately 4.2% 7 2 , reflecting a solid labour market
underpinned by ongoing job growth and continued inward investment. Inflation moderated considerably during the year,
with the Consumer Price Index trending from 4.1%2 in January to 1.4%2 in December. Inflation is forecasted to remain
broadly stable at around 2.0% for 20251. For 2025, the outlook remains positive, with projected GDP growth of 2.5%1,
supported by a robust export sector and ongoing foreign direct investment (FDI). Nonetheless, risks such as global
economic slowdowns, potential trade disruptions and domestic challenges in housing affordability could affect the pace
of growth.
Irish Housing Market Remains Underpinned by Robust Trends
The Irish housing market continues to be supported by several long-term tailwinds that are expected to sustain demand
and price pressures over the medium-term. The supply of housing remains significantly below levels required to meet
current and future demand. To address this chronic supply and demand imbalance, an annual target of 50,500 8 3 new
home completions between 2025 and 2030 has been set by the Irish government. This figure is significantly ahead of the
30,330 units completed in 20242, which was a decrease of 6.7% on completions in 2023. Therefore, policymakers are
highly focused on stimulating the supply of new developments.
Ireland’s population, underpinned by a strong economy and net inward migration, is expected to grow by 18% between
2024 and 2035 9 4 . Additionally, the labour market remains at near full employment, with an unemployment rate of
just 4.2% as of 20242, and forecast to remain low in 2025. Immigration continues to be a major driver, with net
migration expected to be over 100,000 people annually by 2025, contributing to increased demand for both rental and
owner-occupied homes. Furthermore, Ireland’s position as a key destination for foreign direct investment (FDI),
particularly in sectors like technology and pharmaceuticals, ensures a steady influx of highly skilled workers.
Strong demand dynamics are reflected in Greater Dublin Area (GDA) house prices, which have continued to experience
upward pressure during 2024. The median house price in Dublin reached €472,000 in 2024, reflecting an annual increase
of 8.3% from the previous year2. Rental prices have also seen a significant rise, with the average rent in Dublin
increasing by 5.2% year-on-year. The outlook for both house prices and rents in the GDA indicates continued growth,
with limited new housing stock projected to keep prices elevated through 2025, compounded by ongoing challenges in
affordability and housing supply.
Development and Transaction activity continues to remain below historical levels
Following on from 2023, where transaction volumes in the Irish residential sector remained at historically low levels
(€240 million, c. 73% below the 10-year historical average), volumes remained relatively subdued in 2024 but increased
to €466 million worth of completed deals 10 5 . Contributing factors include interest rates, which, while reducing,
are still above levels seen over the last decade, and the prevailing restrictive regulatory system which the Company
believes has led to a very significant reduction of private capital investment into Irish PRS.
In the years 2018 to 2022, a total of €9.5 billion was invested into the residential sector in Ireland by
institutional investors, accounting for the supply of 2,000 new apartment units per year. However, following the
introduction of rent caps and increases in interest rates, no new forward-looking transactions have been completed in
the Irish market across 2023 and 2024, and therefore post 2025, PRS completions are expected to decline materially5.
Initial indicators of this predicted vacuum of units emerged during 2024, with Dublin apartment completions declining
by 24.1%2.
Significant opportunity exists for new Irish government to increase housing supply
Various public and private market reports have repeatedly flagged that the Irish rental regulatory system is not
viable for institutional capital in its current form and is having a significantly negative impact on supply in the
private rental market. It is imperative that the new government continue with the review of the effectiveness of RPZs
before the current legislation expires in December 2025 and the Company welcomes the statements made to this effect in
the recently published Programme for Government. We believe there is an opportunity to develop a system that gives
protection and certainty to renters, while also delivering a viable investment case for the development of new private
rental accommodation at scale and we continue to actively advocate for this reform with policymakers.
Business Performance Measures
The Group, in addition to the Operational and Financial results presented above, has defined business performance
indicators to measure the success of its operating and financial strategies:
Average Monthly Rent (“AMR”)
AMR is calculated as actual monthly residential rents, net of vacancies, as at the stated date, divided by the total
number of residential units owned in the property available to rent. Through active property management strategies,
the lease administration system and proactive capital investment programmes, I-RES increases rents as market
conditions permit and subject to applicable laws. It has been presented as the Company believes this measure is
indicative of the Group’s performance of its operations.
Occupancy
Occupancy rate is calculated as the total number of residential units occupied over the total number of residential
units owned as at the reporting date available to rent. I-RES strives, through a focused, hands-on approach to the
business, to achieve occupancies that are in line with, or higher than, market conditions in each of the locations in
which it operates. Occupancy rate is used in conjunction with AMR to measure the Group’s performance of its
operations.
AMR and Occupancy
Properties owned prior to
Total Portfolio 31 December 2023
(Like for Like properties)
2024 2023 2024 2023
As at 31 December AMR Occ. AMR Occ. AMR Occ. AMR Occ. AMR change %
AMR change %
% % % %
Residential €1,814 99.4% €1,774 99.4% 2.3% €1,814 99.4% €1,779 99.4% 1.9%
The Group’s AMR increased to €1,814 at 31 December 2024 a 2.3% increase representing an increase in line with
regulatory cap of the lower of HICP or 2% and optimisation of the portfolio, while residential occupancy remained
consistently high at 99.4%, indicative of the strong market fundamentals in the Irish residential rental sector.
During the period, c.14% of the portfolio units were turned over and where applicable we applied rental increases in
line with regulations.
Gross Yield at Fair Value
Gross Yield is calculated as the Annualised Passing Rents as at the stated date, divided by the fair market value of
the investment properties as at the reporting date, excluding the fair value of development land. Through generating
higher revenue compared to the prior year and maintaining high occupancies, I-RES’ objective is to increase the
Annualised Passing Rent for the total portfolio, which will positively impact the Gross Yield. It has been presented
as the Company believes this measure is indicative of the rental income generating capacity of the total portfolio.
Gross Yield at Fair Value
As at 31 December 2024 31 December 2023
(€'000) (€'000)
Annualised Passing Rent(1) 86,461 85,288
Aggregate fair market value as at reporting date(2) 1,226,995 1,268,550
Gross Yield at Fair Value 7.0% 6.7%
1. 31 December 2024 Annualised Passing rent consists of residential annualised passing rent of €81.3 million and
commercial annualised passing rent of €5.1 million.
2. Includes investment property classified as assets held for sale
The portfolio Gross Yield at Fair Value was 7.0% as at 31 December 2024 compared to 6.7% as at 31 December 2023,
excluding the fair value of development land, investment properties under development and assets held for sale. The
movement represents the impact of softening yields on the portfolio valuation.
EPRA Net Initial Yield
As at 31 December 2024 31 December 2023
(€'000) (€'000)
Annualised passing rent 86,461 85,288
Less: Operating expenses(1) (property outgoings) (20,059) (19,341)
Annualised net rent 66,402 65,927
Completed investment properties 1,226,995 1,268,550
Add: Allowance for estimated purchaser's cost 67,575 65,976
Gross up completed portfolio valuation 1,294,570 1,334,526
EPRA Net Initial Yield 5.1% 4.9%
EPRA topped-up Net Initial Yield 5.1% 4.9%
1. Calculated based on the net rental income to operating revenue ratio of 76.8% for 2024 (77.3% for 2023).
EPRA Earnings per Share
EPRA Earnings represents the earnings from the core operational activities of the Group. It is intended to provide an
indicator of the underlying performance of the property portfolio and therefore excludes all components not relevant
to the underlying and recurring performance of the portfolio, including any revaluation results and profits/losses
from the sale of properties. EPRA EPS is calculated by dividing EPRA Earnings for the reporting period attributable to
shareholders of the Company by the weighted average number of ordinary shares outstanding during the reporting period.
It has been presented as the Company believes this measure is indicative of the Group’s performance of its operations.
EPRA Earnings per Share
For the year ended 31 December 2024 31 December 2023
Loss for the year (€'000) (6,676) (116,014)
Adjustments to calculate EPRA Earnings exclude:
Changes in fair value of investment properties (€'000) 33,745 141,791
(Gain)/loss on disposal of investment properties (€'000) (1,622) 418
Changes in fair value of derivative financial instruments (€'000) 104 (86)
Tax on profits on disposals (€'000) (38) 1,476
EPRA Earnings (€'000) 25,513 27,585
Non-recurring costs (€’000) 3,411 939
Adjusted EPRA Earnings before non-recurring costs (€’000) 28,924 28,524
Basic weighted average number of shares 529,578,946 529,578,946
Diluted weighted average number of shares 529,578,946 529,578,946
EPRA Earnings per share (cents) 4.8 5.2
Adjusted EPRA EPS before non-recurring costs per share (cents) 5.5 5.4
EPRA Diluted Earnings per share (cents) 4.8 5.2
The decrease in EPRA Earnings to €25.5 million (31 December 2023: €27.6 million) is driven by the impact of
non-recurring costs offset by strong operational performance and lower financing costs.
Adjusted EPRA EPS was 5.5 cents for the year ended 31 December 2024 compared to 5.4 cents for the same period last
year. The increase is primarily driven by strong operational performance and lower financing costs in the period.
EPRA Net Asset Value
In October 2019, EPRA introduced three EPRA NAV metrics to replace the then existing EPRA NAV calculation that was
previously being presented. The three EPRA NAV metrics are EPRA Net Reinstatement Value (“EPRA NRV’), EPRA Net
Tangible Asset (“EPRA NTA”) and EPRA Net Disposal Value (“EPRA NDV”). Each EPRA NAV metric serves a different purpose.
The EPRA NRV measure is calculated to highlight the value of net assets on a long term basis. EPRA NTA assumes
entities buy and sell assets, thereby crystallising certain levels of deferred tax liability. No deferred tax
liability is calculated for I-RES as it is a REIT, and taxes are paid at the shareholder level on distributions. Any
gains arising from the sale of a property are expected either to be reinvested for growth, debt repayment or 85% of
the net proceeds are distributed to Shareholders to maintain the REIT status. Lastly, EPRA NDV provides the reader
with a scenario where deferred tax, financial instruments, and certain other adjustments are calculated to the full
extent of their liabilities.
31 December 2024
As at EPRA NRV EPRA NTA(1) EPRA NDV(2)
Net assets (€'000) 668,150 668,150 668,150
Adjustments to calculate EPRA net assets exclude:
Fair value of derivative financial instruments (€'000) 1,554 1,554 —
Fair value adjustment for fixed interest rate debt (€'000) — — 22,470
Real estate transfer costs (€'000)(3) 67,575 — —
EPRA net assets (€'000) 737,279 669,704 690,620
Number of shares outstanding 529,578,946 529,578,946 529,578,946
Diluted number of shares outstanding 529,578,946 529,578,946 529,578,946
Basic Net Asset Value per share (cents) 126.2 126.2 126.2
EPRA Net Asset Value per share (cents) 139.2 126.5 130.4
31 December 2023
As at EPRA NRV EPRA NTA(1) EPRA NDV(2)
Net assets (€'000) 697,331 697,331 697,331
Adjustments to calculate EPRA net assets exclude:
Fair value of derivative financial instruments (€'000) 163 163 —
Fair value adjustment for fixed interest rate debt (€’000) — — 30,058
Real estate transfer tax (€'000)(3) 65,976 — —
EPRA net assets (€'000) 763,470 697,494 727,389
Number of shares outstanding 529,578,946 529,578,946 529,578,946
Diluted number of shares outstanding 529,578,946 529,578,946 529,578,946
Basic Net Asset Value per share (cents) 131.7 131.7 131.7
EPRA Net Asset Value per share (cents) 144.2 131.7 137.4
(1) Following changes to the Irish REIT legislation introduced in October 2019, if a REIT disposes of an asset of its
property rental business and does not (i) distribute the gross disposal proceeds to shareholders by way of dividend,
subject to having sufficient distributable reserves; (ii) reinvest them into other assets of its property rental
business (whether by acquisition or capital expenditure) within a three-year window (being one year before the sale
and two years after it); or (iii) use them to repay debt specifically used to acquire, enhance or develop the property
sold, then the REIT will be liable to tax at a rate of 25% on 85% of the gross disposal proceeds. For the purposes of
EPRA NTA, the Company has assumed any such sales proceeds are reinvested or used to repay debt within the required
three-year window.
(2) Deferred tax is assumed as per the IFRS balance sheet. To the extent that an orderly sale of the Group’s assets
were undertaken over a period of several years, during which time (i) the Group remained a REIT; (ii) no new assets
were acquired or sales proceeds reinvested; (iii) any developments completed were held for three years from
completion; and (iv) those assets were sold at 31 December 2024 valuations, the sales proceeds would need to be
distributed to shareholders by way of dividend within the required time frame or else a tax liability amounting to up
to 25% of distributable reserves plus current unrealised revaluation gains could arise for the Group.
(3) This is the purchaser costs amount as provided in the valuation certificate. Purchasers’ costs consist of items
such as stamp duty on legal transfer and other purchase fees that may be incurred and which are deducted from the
gross value in arriving at the fair value of investment for IFRS purposes. Purchasers’ costs are in general estimated
at 9.96% for commercial and 4.46% for residential.
Principal risks and uncertainties
The Directors of the Company set out below the principal risks and uncertainties that I-RES is currently exposed to
and that may impact performance in the coming financial year in pursuing its current strategy.
I-RES through its risk management processes proactively identifies, assesses, monitors and manages these risks. While
risk can never be fully eliminated, the risk management process is designed to identify, evaluate and respond to the
material existing and emerging risks that I-RES faces in delivering on its agreed strategy and in that context
therefore can only provide reasonable, but not absolute assurance that risks will not materialise. The process aims to
understand and appropriately manage and mitigate identified risks.
The principal risks and uncertainties, along with their strategic impact on the business and mitigating factors, have
been outlined below. I-RES has also provided its belief on how the risk has changed or trended during the year ended
31 December 2024.
Geopolitical Instability, Economy and Inflation
Continuing heightened levels of global instability in economic and geopolitical arenas could lead
to a general weakening of the Irish economy and increasing inflation.
The outcome of the US election is expected to bring substantial changes to US domestic and foreign
policies, potentially leading to increased tensions with China and Russia and impacting global
trade relations. For Ireland, this could mean changes in US trade policies, including potential
tariffs and protectionist measures, which could affect Ireland's exports to the US, one of its
largest trading partners. Additionally, changes in US corporate tax policies might influence the
operations of US multinationals based here. Given that Ireland has both a significant financial
Risk services sector and a high level of Foreign Direct Investment (FDI) by US firms, changes could
result in fluctuations in investment flows and market stability.
Any prolonged instability in the Middle East can lead to higher energy prices, which can increase
production costs for Irish businesses and reduce consumer spending power.
These, and other geopolitical developments, such as the continuing conflict in Ukraine, contribute
to a broader sense of general economic uncertainty. Overall, while Ireland's economy is resilient,
its openness makes it vulnerable to global economic and political shifts.
Of key concern are potential negative impacts on the Irish economy generally and particularly on
the residential property sector for the greater Dublin area where our portfolio is located.
High
Strategic Impact Reduced economic activity could have a negative impact on business performance, asset values and
net rental income, which could affect cash flows going forward. In addition, inflationary
increases in respect of input cost and payroll in excess of rent inflation would put downward
pressure on Net Rental Income (NRI) and earnings.
On an ongoing basis, Management actively monitor and report to the Board on business performance,
the macro-economic and geopolitical environment, and residential sector developments. The Board
regularly considers the wider economic and macro-outlook, and its impact on I-RES’ strategy and
budgetary processes. We continue to monitor the impact that changes in inflation and interest
rates are having on our sector. I-RES’ business is focused on the greater Dublin area, which
continues to be economically resilient. I-RES’ properties continue to experience exceptional
demand when units are available with occupancy of 99.4% as at 31 December 2024 (99.4% at 31
December 2023). There is also strong continuing focus through our internal teams on active revenue
Mitigation Strategy and cost control within the day-to-day business operations. I-RES retains its strong financial
position, with a robust balance sheet and ample liquidity. The business has entered into interest
rate hedging arrangements in relation to its Revolving Credit Facility (“RCF”) which has resulted
in 85% of I-RES’ total drawn debt being fixed as at 31 December 2024. I-RES has no debt maturities
until April 2026 with laddering out to 2032.
Increasing
The current global economic and geopolitical landscape is characterised by uncertainty and
volatility. While the Irish economy continues to be resilient, downside risks have increased due
to geopolitical fragmentation, the likelihood of increased incidence of trade tariffs and possible
economic trade downturns.
Risk Trending Since
31 December 2023 Interest rates in Ireland have moved recently in line with ECB rate changes and predictions for
2025 indicate possible further rate cuts, which is positive. In addition, inflation in Ireland has
reduced over 2024 and inflation in 2025 is projected to average around 1.95%, predicated on stable
energy prices and moderate wage growth. However, energy costs in Ireland remain high and are
expected to rise due to VAT rates, grid fees and carbon taxes. Current uncertainty due to changes
in US taxation, trade and tariff policies in respect of major trading partners, including the EU,
may negatively impact the Irish economy.
Operating cost pressures may continue to emerge during 2025 in response to existing inflationary
pressures and the lag effect of it moving through the supply chain.
Regulatory and Legislative Impacts
Risk In recent years, changes made to rental property, tax and REIT regulations in Ireland have
significantly limited revenue growth, even at times of high inflation. Together these regulatory
changes have resulted in some diminution in the attractiveness of the Irish PRS sector and Irish
REITs for international investors.
High
The industry currently faces an environment of increased costs of financing and operation, while
at the same time having legislative constraints on revenues through restrictive rental property
regulations.
Strategic Impact
Amendments to regulatory restrictions in Ireland, implemented in December 2021, which limit annual
rent increases to the lower of HICP and 2% (and extended in May 2024 out to December 2025),
continue to impact I-RES’ ability to increase rents in line with increasing costs, despite
continued high demand for properties and thus, impacts I-RES’ attractiveness as an investment
vehicle.
As part of its wider strategy, I-RES is actively engaged with the Irish Government and relevant
government departments and regularly contributes to material consultations relevant to the sector.
I-RES highlights in these interactions the fact that there is currently a range of structural
issues relating to the provision of housing, which is resulting in a supply imbalance in the Irish
market. The delivery of affordable residential housing remains a key challenge and there will
continue to be a requirement for well capitalised companies who can both fund large scale
developments and professionally manage these residential units upon completion.
I-RES engages a public affairs firm to advise in relation to these matters as well as actively
participating in industry groups to ensure ongoing consultation and engagement with relevant
authorities, regulators and government departments on significant policy and regulatory matters
likely to impact on its affairs.
I-RES takes account of current regulations and rent legislation, as well as the wider economic
Mitigation Strategy environment in considering its strategy, its investment decisions and expectations of financial
performance and growth.
If any new legislation or regulations are under consideration, the impacts are assessed and I-RES’
strategy is adapted accordingly. When legislation is enacted, relevant staff will receive training
and education in order to ensure compliance with regulations and legislation.
I-RES also monitors and manages costs keeping in mind any limitations on revenue growth.
Increasing
A new government with a significant majority was elected in January 2025 on a five-year term,
which is positive news for the real estate sector as a long-term focus is necessary for housing
policy. The Company has continued to advocate for a balanced regulatory system aimed at delivering
more homes while still protecting renters and simultaneously attracting institutional capital to
Risk Trending Since address the chronic undersupply of housing, which currently exists in the Irish market. The
Company welcomes the Irish Government’s commitment in the ‘Programme for Government’ to encourage
31 December 2023 institutional investment, continue with its commitment to review rent regulations and attract
private sector capital to its Secure Tenancy Affordable Rental (“STAR”) scheme.
Housing continues to be a significant political issue. Therefore, until such time as the
Government gives a clear indication of its final policy intentions in this area the risk
continues.
Asset Management and Investment Risk
The risk is that I-RES does not achieve its performance targets due to underperformance of its
asset management and investment strategy. At the core of our success is the need to effectively
manage the investment and asset management activities we undertake.
Asset management comprises those activities involved in the optimisation of asset values through
strategic initiatives in areas such as ongoing investment in the infrastructure to address key
deliverables, including building maintenance, energy efficiency, retrofitting and sustainability
initiatives. These activities serve to deliver a best-in-class resident experience to support
revenue and value maximisation over time.
Investment management involves the ongoing review and optimisation of the portfolio through
Risk targeted value adding acquisitions (directly or through joint ventures), development projects
(directly or through joint ventures), and disposals with the aim of maximising returns on
investment for capital invested through either new investment opportunities or recycling capital
from the proceeds of sale from existing portfolio assets.
Investment assets may decrease in value or may require material unanticipated expenditures after
acquisition because of unknown risks and conditions at the time of purchase, including structural
deficiencies or non-compliance with statutory health and safety standards.
I-RES’ ability to execute on asset acquisition opportunities is dependent on its ability to raise
new capital either directly or via joint ventures. Investment opportunities in the residential for
rent sector are currently limited in the Irish market and as a result, I-RES may not grow its
portfolio if there is a lack of new development, acquisition projects or if I-RES is unable to
raise new capital sources. If growth opportunities for property portfolio expansion are limited,
it may impact I-RES’ ability to generate growing returns for its shareholders.
High
Strategic Impact
I-RES may not meet its long-term shareholder value growth targets if it cannot continue to grow
and optimise its overall portfolio.
I-RES has deep market knowledge and has established strong industry relationships, which can
provide for new growth opportunities. Additionally, I-RES has dedicated staff focused on
identifying and evaluating a pipeline of acquisition and development opportunities. These
opportunities include partnerships with strategic partners in the form of joint ventures.
I-RES focuses on a three-pronged strategy for growth. This involves direct acquisitions of new
assets, development opportunities within existing assets, and partnering with institutional
investors and developers in relation to new acquisition opportunities. Where investments are under
consideration, the Group carries out financial, legal, operational, technical and environmental
due diligence on every investment opportunity to determine if it fits with the Group’s stated
investment policy.
There is also ongoing focus on opportunities for capital recycling through the divestment of
certain existing assets, where such transactions are value enhancing through targeted divestments,
and the appropriate recycling of capital into higher return opportunities and capital investment
opportunities within the existing portfolio.
Where divestments are under consideration, the Group carries out financial, legal, operational,
technical and environmental due diligence on every divestment opportunity to determine it fits
with the Group’s stated investment policy.
Ongoing review is carried out on the anticipated current and future income expectations and
Mitigation Strategy operational costs associated with managing the assets.
The Board must approve all material development or investment opportunities prior to commencement
and all material contracts are executed by the Board. The CEO and Board reviews and approves
investment proposals for over €1 million, including consideration of risks during the due
diligence process. A full review is completed in respect of the anticipated current and future
income expectations and operational costs associated with acquiring assets.
I-RES engages subject matter experts in conducting financial, legal, operational, technical and
environmental due diligence on every investment opportunity (both acquisitions and development
projects) to determine if it fits with I-RES’ stated investment policy. I-RES has framework
agreements in place with third party experts for conducting technical and engineering studies, and
investigations on potential acquisitions, developments, or forward purchase contracts as well as
engaging specialist property lawyers to conduct legal due diligence and to advise on purchase and
development contracts.
Over the last two years, through the disposal of properties, individual units and non-income
earning assets at or above book value and significantly above cost, I-RES has strengthened its
balance sheet and the quality of the portfolio.
However, there are clear sectoral issues with the current underlying economic challenges facing
residential property developers that are significantly constraining the availability of an active
pipeline of relevant development projects. These are driven by factors such as revenue
constraints, escalating construction costs, cost inflationary pressures, ongoing planning
challenges, an inefficient rental regulation framework and a reduction in available capital to
fund acquisitions.
Stable
Standing stock assets with realistic vendor valuation expectations continue to be in limited
supply, and new supply continues to come online more slowly than expected. Growth opportunities
will exist in the medium to long term for organisations with a strong balance sheet, access to
capital and a proven record of successful acquisition and operational integration of new assets
Risk Trending Since into a professionally run portfolio. However, in the short to medium term the dearth of viable
31 December 2023 acquisition opportunities impacts the current growth opportunity for I-RES.
I-RES continues to monitor and adapt to impacts on the supply of construction labour and
materials, both for development activity and any ongoing repair and maintenance related activity.
Operational Management Risk
A key initiative arising from I-RES’ strategic review was the implementation of additional income
generating and cost reduction initiatives across the Company’s operations.
Failure to effectively manage both the revenue and cost streams arising from the Company’s
operations activities would negatively impact on financial performance and reported NRI and could
Risk damage the Company’s reputation since these are key metrics for both our investors and providers
of capital.
High
I-RES may not meet its performance targets if it cannot continue to maximise the performance of
Strategic Impact its overall portfolio or if revenues are not optimised or if there are material cost overruns in
the ongoing operation and maintenance of our sites.
Poor operational asset management may also result in negative impacts on the valuation and revenue
generation capacity of the portfolio.
I-RES’ operations are well managed and when benchmarked across key revenue and cost metrics,
including operational expenditure and general and administrative costs, maintains cost levels in
line with its comparable European residential peers. I-RES continues to control costs, reflected
in ongoing focus and initiatives to mitigate cost inflation, to maximise revenues from the
portfolio and to leverage its operating platform.
Mitigation Strategy As a fully integrated residential business with a strong operating platform, I-RES is in a leading
position to leverage a range of options for future growth and ensure it fully utilises and
maximises the return on all of its assets, including its operating platform. This platform is a
strategic asset in its own right and we continue to leverage its data capture and analysis
capabilities to support our operations.
However, there are clear sectoral issues that continue to impact, particularly on the revenue
side, due to current rent pressure zone (RPZ) regulation.
Stable
I-RES continues to actively and effectively manage its operational activities and, operating
within the legislative requirements, seeks to maximise rental income while maintaining a close
Risk Trending Since focus on cost management. I-RES actively controls both headcount and other costs and continues to
31 December 2023 monitor and adapt to impacts on the supply of labour and materials for all ongoing repair and
maintenance related activity.
Access to Capital
Risk
The ability to access capital may become limited, which would impact the growth strategy of I-RES.
Medium
Strategic Impact If I-RES is unable to source debt financing at attractive rates or raise equity, it may not be
able to meet its growth objectives through acquisitions and development or preserve its existing
assets through maintenance or capital expenditures.
The CEO and CFO have developed relationships with lenders, both in Ireland and internationally,
which provide ongoing financing possibilities for I-RES. In addition, I-RES continues to explore
possible new avenues for raising equity growth capital to support future expansion.
The quality of I-RES’ property portfolio and the LTV target of between 40% and 45% of total assets
(particularly apartments) are attractive credit characteristics for potential lenders, which to
date have facilitated the raising of debt financing. I-RES currently has a revolving credit
facility of up to €500 million and Private Placement Notes of c. €200 million.
Mitigation Strategy I-RES invests in properties that generate a strong rate of return for its investors and, in turn,
increases the attractiveness of its shares and dividends. I-RES actively manages its liquidity
needs and monitors capital availability.
Through pro-active capital management and maintenance of a robust financial position, I-RES has
not needed to raise new capital nor place restrictions on, or withdrawals of, its dividend policy.
Stable
As at 31 December 2024, I-RES had drawn €356 million on its revolving credit facility and had
Private Placement Notes of c. €200 million. I-RES continues to monitor its liquidity needs to
ensure that future capital requirements are anticipated and met within the limits of its leverage
thresholds.
Risk Trending Since
31 December 2023 Based on its financial position and performance, as well as its relationships with lenders and
current and potential investors, I-RES has the ability to pursue opportunities should the
underlying fundamentals and current financial obligations support the business case.
Cost of Capital, Interest Rate Increases and Loan to Value Ratio
Risk A fundamental facet of I-RES’ business relates to the cost of capital it deploys and its leverage
level. Interest rate increases and/or property valuation decreases result in higher debt service
costs and restriction of future leveraging opportunities due to its regulatory and debt facility
covenants requirement to maintain LTV below 50%.
Medium
I-RES is exposed to risks associated with availability of capital (equity and debt) and movements
in interest rates on its floating rate bank debt, as well as movements in property valuations.
Significant increases in interest rates and the cost of equity could affect I-RES’ cash flow and
Strategic Impact its ability to meet growth objectives or preserve the value of its existing assets. Elevated
interest rates represent a significant downside risk as it impacts on the costs of existing
borrowing, the cost of raising new funding and the viability and return available from new
opportunities in the market.
Additionally, property valuations are inherently subjective but also driven by market forces. A
contraction in property values could impact on gearing levels, which could result in higher
interest costs and potential covenant breaches.
I-RES has a proven record of strong financial results. Strong results, combined with being in a
residential sector with a strong underlying market, helps to manage our ability to meet
shareholders’ expectations and thus, the cost of equity.
As previously noted, I-RES has developed strong relationships with lenders, both in Ireland and
internationally, which provide ongoing financing possibilities for I-RES.
I-RES’ revolving credit facility is €500 million with the interest margin fixed at 1.75%, plus the
one‑month EURIBOR rate. On 11 February 2022, I-RES exercised an option for an extension for the
entire facility with a new maturity date of 18 April 2026.
I-RES completed a private placement of notes equivalent to circa €200 million in March 2020, with
a weighted average fixed interest rate of 1.92% inclusive of swap costs. The notes have a laddered
maturity over six, nine, and eleven years, with the first repayment due in 2027. As at 31 December
Mitigation Strategy 2024, I-RES has c. €7 million of cash and €144 million of committed undrawn debt under its
Revolving Credit Facility. I-RES maintains an active programme of engagement with its debt and
equity providers, including an ongoing Investor Relations programme.
I-RES’ net loan to value ratio was 44.4% as at 31 December 2024, well below the 50% maximum
allowed under the Irish REIT rules and the financial covenants under I-RES’ debt agreements. I-RES
also manages its headroom on its interest coverage ratio.
I-RES closely monitors property values by updating its property valuations twice annually using
two independent property valuation firms.
Decreasing
Whilst capital markets in the early part of 2024 continued to be constrained in terms of overall
liquidity, there is improved sentiment in the market at the end of 2024.
In 2024, we saw the ECB reduce interest rates four times throughout the year and this momentum has
continued in the beginning of 2025, with a further cut in February 2025 and the market forecasting
further cuts throughout the year.
Risk Trending Since
31 December 2023 The valuation of the portfolio as at 31 December 2024 when compared to year end 2023 has
decreased. This was driven by our ongoing asset disposal programme, whilst modest yield expansion
resulted in fair value reduction to the portfolio in H1 2024. In the second half of the year,
yields have stabilised resulting in like for like valuations broadly in line with 30 June 2024.
The independent valuers are signalling a stable outlook for the sector into 2025.
Cybersecurity and Data Protection
Risk In the current environment, businesses encounter increased information security risks. Without an
adequate cybersecurity program and data governance frameworks, both internally and with service
providers, the Group's systems and data may be exposed to cybersecurity attacks, potentially
resulting in service disruptions or the loss of confidential commercial or personal information.
Medium
I-RES faces a continuous risk concerning its information systems, particularly if it fails to
implement and adhere to appropriate cybersecurity and data protection requirements and practices.
Strategic Impact Such failures could result in outcomes like service disruptions, unauthorised data access and
potentially fraudulent activities involving confidential or non-public business information, or
personal data, especially that of I-RES’ residents. These incidents could lead to direct losses
for stakeholders, penalties for non-compliance, potential third-party liabilities and reputational
damage to I-RES. Inadequate security protocols implemented by IT providers may heighten these
risks, potentially leading to cybersecurity breaches.
I-RES continues to monitor through ongoing risk assessments and a yearly assurance program for
threats posed from the external cyber risk landscape. We continually invest in our controls and
base our Information Security Management System on ISO27001. Across 2024, there has been
continuing significant focus on cyber capability and IT resilience, with the embedding of the
enhanced Cyber Security Framework that commenced during 2023. This framework forms the basis for
future iterations of I-RES’ Cyber Strategy.
I-RES is responsible for data privacy and protection as a data processor and remains adaptable
either itself or through its sub processors to ongoing technological and legislative change.
Employees receive regular awareness training on cybersecurity, privacy and data protection.
Mitigation Strategy Access to personal data is controlled through physical measures, administrative measures and IT
security. I-RES ensures all software is up to date to protect against known vulnerabilities and
maintains regular backups of critical systems and data supported by recovery plans to restore
operations quickly in the event of an incident.
I-RES maintains cybersecurity insurance coverage and continues to monitor and assess risks
surrounding collection, processing, storage, disclosure, transfer, protection and
retention/destruction practices for personal data.
Throughout 2024, we continued our investment in technology and infrastructure enhancements and
conducted various technology security assessments, including phishing simulations, ransomware
testing and vulnerability scans.
Increasing
As technological change continues to develop at a rapid pace, the inherent risks surrounding
cybersecurity and data protection also evolve in an accelerated fashion. European Union Data
Protection legislation (e.g. General Data Protection Regulation and ePrivacy) is increasing in
prescriptiveness, obligation and administration. New requirements such as those under the Digital
Operational Resilience Act (DORA) continue to emerge and additionally issues such as vendor risk
complexities, phishing and social engineering attempts continue at an accelerated rate due to
online criminal “business models” focusing on high volume/quick hit ransomware deployment and
basic financial fraud via wire transfer.
Risk Trending Since
31 December 2023 The ongoing advancements and influence of Artificial Intelligence (AI) present a range of risks
and opportunities that necessitate active management. This management is essential not only to
protect the organisation but also to leverage AI's capabilities to enhance performance.
While the external risk is both dynamic and constant, I-RES continues to implement industry
recommended practices to mitigate key cyber and information risk areas, and to assess the impact
of emerging technologies.
Compliance obligations
Risk Potential breaches of laws and regulations could result in litigation or investigations, the
imposition of significant fines, sanctions, loss of REIT status, adverse operational impact and
reputational damage.
Low
I-RES is subject to a wide variety of laws and regulations (including those applicable to it as a
listed company) which vary in complexity, application and frequency of change.
Strategic Impact
In addition, given the requirements of the Corporate Sustainability Reporting Directive (CSRD),
I-RES will be subject to an increase in ESG compliance and disclosure requirements in 2025.
Non-compliance with any of these laws and regulations, depending on the scale of the incident, can
result in significant impacts including penalties/loss of regulated status and/or reputational
damage.
There is proactive monitoring of I-RES’ compliance with the rules and regulations across key areas
of activity, including the Listing Rules, Corporate Governance Code, REIT rules, EU and Central
Bank requirements and Tax legislation.
Within the business there are legal, risk and compliance personnel who monitor both compliance
with current requirements and any impending or emerging changes in rules and regulations or tax
Mitigation Strategy policies that may impact on the organisation. The results of these compliance reviews are reported
to the Board on a quarterly basis, at a minimum.
An example in 2024 was reviewing our obligations and beginning a comprehensive project to ensure
that I-RES will be in a position to meet the requirements of CSRD.
Stable
I-RES does not believe the risk of non-compliance has changed generally. However, with the
Risk Trending Since introduction of the requirements of CSRD the burden of compliance has increased further.
31 December 2023
The Audit Committee (together with the Sustainability Committee in respect of CSRD) continues its
review and monitoring as well as taking expert advice when necessary.
Climate Change and Environmental Sustainability
Failure to respond appropriately and sufficiently to climate and environmental sustainability
risks or failure to benefit from the potential opportunities could lead to adverse impact on
Risk reputation, property values and shareholder returns.
The recent World Economic Forum at Davos identified what are considered to be the top 10 global
risks in the next decade. Of those risk headings, 5 in total fall into the environmental risk
category and the top 4 risks are in this area.
Medium
There is an increasing exposure to environment and climate-related risks across the portfolio.
The climate-related risks/opportunities include, but are not limited to, more extreme and volatile
Strategic Impact weather events, further changes in regulations or government policies in response to climate
change targets, reputation management, developing technology, investor pressure and expectations
and the necessity to have in place an appropriate and effective climate adaptation strategy.
The environmental risks/opportunities include, but are not limited to, management of resource use
(energy, water), material sourcing and use, greenhouse gas emissions and other impacts from
operating, maintaining and renovating our properties.
I-RES places building a sustainable business at the heart of its strategy, providing and operating
a modern residential asset portfolio with high sustainability features. I-RES is embedding
Environmental, Social and Governance (ESG) standards across its operations to support the
development of a sustainable real estate portfolio which benefits investors, the economy,
communities and wider society.
I-RES also emphasises social impact and building communities into its day-to-day operating plans
as well as having a close liaison with key stakeholders and continues to actively progress its
carbon reduction programme.
Building on our existing sustainability programme, the previous materiality assessment conducted
in 2021, along with I-RES’ Annual and Sustainability Reports since 2021, and while preparing for
compliance with CSRD, we carried out a Double Materiality Assessment in 2024. CSRD requires
companies to report on the impact of their corporate activities on the environment and society and
requires the assurance of reported information.
Mitigation Strategy In addition, as part of our continued focus on climate and environmental sustainability, I-RES has
a comprehensive ESG project underway which includes developing decarbonisation pathways, carrying
out scenario analysis and ultimately preparing a climate transition plan that will demonstrate
I-RES’ commitment to achieving a 1.5 degree pathway and how its business model will remain
relevant in a net-zero carbon economy.
Aligning with CSRD will ensure transparent comparable performance data reporting for our
stakeholders and, as CSRD aligns with broader global frameworks like the Global Reporting
Initiative (GRI) and Task Force on Climate-related Financial Disclosures (TCFD), it ensures our
sustainability strategy remains relevant beyond as well as within the EU.
Additionally, I-RES benchmarks its Environmental, Social and Governance (ESG) reporting against
industry benchmarks.
The Board has in place a Sustainability Committee which, among other duties, is responsible for
developing and recommending to the Board the ESG strategy, policies, risks, targets and investment
required to achieve the approved ESG strategy.
Increasing
I-RES and the Board continue to monitor the organisation’s environmental sustainability
Risk Trending Since performance and mitigating actions and will continue to monitor for changes to legislation,
31 December 2023 regulation and policy impacting environmental and sustainability issues. This is an area where the
requirements are constantly evolving and with challenging implementation timelines.
Major Safety, Health, Security or Asset loss incident
Risk
Failure to respond appropriately to a major safety, health or security incident, or to the loss of
a material asset leading to adverse impact on reputation, property values and shareholder returns.
Medium
Failure to respond appropriately to any material disruption to our operations including a major
site-based incident and in particular, failure to identify, mitigate and/or react effectively to a
major health, safety, or security incident, leading to:
Strategic Impact ▪ Serious injury, illness or loss of life.
▪ Delays to major building projects .
▪ Access restrictions to our properties resulting in loss of income.
▪ Inadequate response to regulatory changes.
▪ Reputational impact.
This could result in impacts in terms of loss of income, impact on share price, loss of
stakeholder confidence and criminal/civil proceedings.
Health and Safety is a core consideration in all management activity and the protection of the
health and safety of our tenants, staff and the public are an area of continual focus. I-RES
complies with relevant regulation in particular in key areas such as fire safety and housing
standards.
The operations team is staffed by experienced industry professionals who are based on site at the
locations they are responsible for. In addition to ongoing monitoring of our sites, procedures
also include an annual safety assessment at letting unit level. This team is also supported where
necessary by specialist contractor suppliers in respect of the ongoing maintenance of our sites.
Mitigation Strategy There is also ongoing engagement on Health and Safety issues with Owner Management Companies
(“OMC’s”) and Managing Agents on sites not managed by I-RES.
All sites are fitted with fire detection systems which are subject to ongoing monitoring and
quarterly testing.
Emergency response arrangements are in place as part of the business continuity and crisis
management framework and are aligned to best practice procedures. Test exercises are undertaken
and lessons learned reviews completed both on those exercises and any actual incidents that arise
from normal operations.
Stable
Risk Trending Since
31 December 2023 I-RES has a proven record of the successful management of its portfolio of properties over an
extended period. The safe management of our sites in compliance with relevant regulations and
requirements remains a key and ongoing priority for the organisation.
Consolidated Statement of Financial Position
(Unaudited) (Audited)
As at 31 December 2024 Note 31 December 2024 31 December 2023
€'000 €'000
Assets
Non-Current Assets
Investment properties 5 1,228,238 1,274,360
Property, plant and equipment 7 9,854 8,208
Derivative financial instruments 18 1,637 —
1,239,729 1,282,568
Current Assets
Other current assets 8 4,876 6,312
Derivative financial instruments 18 1,133 2,879
Cash and cash equivalents 14 7,350 7,864
Assets held for sale 5 3,957 —
17,316 17,055
Total Assets 1,257,045 1,299,623
Liabilities
Non-Current Liabilities
Bank indebtedness 10 355,197 371,355
Private placement notes 11 200,991 196,125
Lease liability 22 9,438 7,842
Derivative financial instruments 18 555 3,667
566,181 578,989
Current Liabilities
Accounts payable and accrued liabilities 9 14,115 15,675
Derivative financial instruments 18 1,002 —
Security deposits 7,037 7,202
Lease liability 22 560 426
22,714 23,303
Total Liabilities 588,895 602,292
Shareholders’ Equity
Share capital 13 52,958 52,958
Share premium 504,583 504,583
Share-based payment reserve 1,659 1,354
Cashflow hedge reserve 19 (2,934) (672)
Retained earnings 111,884 139,108
Total Shareholders' Equity 668,150 697,331
Total Shareholders' Equity and Liabilities 1,257,045 1,299,623
IFRS Basic NAV per share 27 126.2 131.7
The accompanying notes form an integral part of these consolidated financial statements.
Consolidated Statement of Profit or Loss and Other Comprehensive Income
(Unaudited) (Audited)
For the year ended 31 December 2024 Note 31 December 2024 31 December 2023
€'000 €'000
Operating Revenue
Revenue from investment properties 15 85,273 87,854
Operating Expenses
Property taxes (1,110) (1,168)
Property operating costs (18,708) (18,772)
Net Rental Income ("NRI") 65,455 67,914
General and administrative expenses 16 (15,346) (12,686)
Share-based compensation expense 12 (305) (153)
Net movement in fair value of investment properties 5 (33,745) (141,791)
Gain/(Loss) on disposal of investment property 1,622 (418)
(Loss)/Gain on derivative financial instruments 18 (104) 86
Depreciation of property, plant and equipment 7 (591) (536)
Lease interest 6 (296) (212)
Financing costs 17 (23,389) (26,695)
Loss before taxation (6,699) (114,491)
Taxation 20 23 (1,523)
Loss for the Year (6,676) (116,014)
Other comprehensive income
Items that are or may be reclassified subsequently to profit or loss:
Cash flow hedges - effective portion of changes in fair value 5,825 (6,160)
Cash flow hedges - cost of hedging deferred 418 362
Cash flow hedges - reclassified to profit or loss (8,505) (507)
Other Comprehensive Loss for the year (2,262) (6,305)
Total Comprehensive Loss for the Year Attributable to Shareholders (8,938) (122,319)
Basic Loss per Share (cents) 26 (1.3) (21.9)
Diluted Loss per Share (cents) 26 (1.3) (21.9)
The accompanying notes form an integral part of these consolidated financial statements.
Consolidated Statement of Changes in Equity
Share- Cashflow
For the year ended 31 December Note Share Capital Share Premium Retained Total
2024 Earnings based payments hedge Reserve
Reserve
(Unaudited) €'000 €'000 €'000 €'000 €'000 €'000
Shareholders' Equity at 1 52,958 504,583 139,108 1,354 (672) 697,331
January 2024
Total comprehensive loss for the year
Loss for the year — — (6,676) — — (6,676)
Other comprehensive loss for the — — — — (2,262) (2,262)
year
Total comprehensive loss) for the year — — (6,676) — (2,262) (8,938)
Transactions with owners, recognised directly in equity
Long-term incentive plan 12 — — — 305 305
Dividends paid 21 — — (20,548) — — (20,548)
Transactions with owners, recognised — — (20,548) 305 — (20,243)
directly in equity
Shareholders' Equity at 31 December 2024 52,958 504,583 111,884 1,659 (2,934) 668,150
For the year ended 31 December Retained Share- Cashflow
2023 Note Share Capital Share Premium Earnings based payments hedge Reserve Total
Reserve
(Audited) €'000 €'000 €'000 €'000 €'000 €'000
Shareholders' Equity at 1 January 52,958 504,583 282,978 1,201 5,633 847,353
2023
Total comprehensive loss for the year
Loss for the year — — (116,014) — — (116,014)
Other comprehensive loss for the year — — — — (6,305) (6,305)
Total comprehensive loss for the year — — (116,014) — (6,305) (122,319)
Transactions with owners, recognised directly in equity
Long-term incentive plan 12 — — — 153 — 153
Dividends paid 21 — — (27,856) — — (27,856)
Transactions with owners, recognised directly — — (27,856) 153 — (27,703)
in equity
Shareholders' Equity at 31 December 2023 52,958 504,583 139,108 1,354 (672) 697,331
The accompanying notes form an integral part of these consolidated financial statements.
Consolidated Statement of Cash Flows
(Unaudited) (Audited)
For the year ended 31 December 2024 Note 31 December 2024 31 December 2023
€'000 €'000
Cash Flows from Operating Activities:
Operating Activities
Loss for the Year (6,676) (116,014)
Adjustments for non-cash items:
Fair value adjustment - investment properties 5 33,745 141,791
(Gain)/Loss on disposal of investment property (1,622) 418
Depreciation of property, plant and equipment 7 591 536
Amortisation of financing costs 22 1,356 2,079
Share-based compensation expense 12 305 153
Loss/(Gain) on derivative financial instruments 18 104 (86)
Allowance for expected credit loss 145 (90)
Capitalised leasing costs 5 795 876
Taxation 20 (23) 1,523
Profit/(loss) adjusted for non-cash items 28,720 31,186
Interest expense 22 22,329 24,828
Changes in operating assets and liabilities 22 1,194 1,098
Income taxes paid (1,494) (88)
Net Cash Generated from Operating Activities 50,749 57,024
Cash Flows from Investing Activities
Net proceeds from disposal of investment property 4 18,403 88,672
Deposits on acquisitions — 2
Property capital investments 5 (9,156) (7,590)
Direct leasing cost 5 — 28
Purchase of property, plant and equipment 7 (36) (26)
Net Cash Generated from Investing Activities 9,211 81,086
Cash Flows from Financing Activities
Financing fees 22 (21) (359)
Interest paid 22 (22,284) (24,580)
Credit Facility drawdown 22 12,800 10,700
Credit Facility repayment 22 (29,950) (94,700)
Lease payment 6 (471) (416)
Dividends paid to shareholders 21 (20,548) (27,856)
Net Cash Used in Financing Activities (60,474) (137,211)
Changes in Cash and Cash Equivalents during the Year (514) 899
Cash and Cash Equivalents, Beginning of the Year 7,864 6,965
Cash and Cash Equivalents, End of the Year 7,350 7,864
The accompanying notes form an integral part of these consolidated financial statements.
Notes to Consolidated Financial Statements
1. General Information
Irish Residential Properties REIT plc (“I-RES” or the “Company”) was incorporated in Ireland on 2 July 2013. On 16
April 2014, I-RES obtained admission of its ordinary shares to the primary listing segment of the Official List of
Euronext Dublin and to trading on the main market for listed securities of Euronext Dublin. I-RES’ registered office
is South Dock House, Hanover Quay, Dublin 2, Ireland. The ordinary shares of I-RES are traded on the main market for
listed securities of Euronext Dublin under the symbol “IRES”.
2. Material Accounting Policies
a. Basis of preparation
This financial information has been derived from the information to be used to prepare the Group’s consolidated
financial statements for the year ended 31 December 2024 in accordance with International Financial Reporting
Standards as adopted by the European Union (“IFRS”), IFRS Interpretations Committee (“IFRIC”) interpretations and
those parts of the Companies Act 2014 applicable to companies reporting under IFRS. The financial information for the
years ended 31 December 2024 and 31 December 2023 has been prepared under the historical cost convention, as modified
by the fair value of investment properties, derivative financial instruments at fair value and share options at grant
date through the profit or loss in the consolidated statement of profit or loss and other comprehensive income.
The financial information presented herein does not amount to statutory financial statements that are required by
Section 347 of the Companies Act 2014 to be annexed to the annual return of the Group. The financial information does
not include all the information and disclosures required in the annual financial statements. The purpose of this
financial information is for the provision of information to shareholders. The statutory financial statements for the
year ended 31 December 2023 have been attached to the annual return of the Company and filed with the Registrar of
Companies. The audit report on those statutory financial statements was unqualified and did not contain any matters to
which attention was drawn by way of emphasis. The statutory financial statements for the year ended 31 December 2024
will be annexed to the next annual return of the Group and filed with the Registrar of Companies.
This announcement has been prepared on the basis of the results and financial position that the Directors expect will
be reflected in the audited statutory accounts when these are completed. The preliminary announcement has been
approved by the Board of Directors. It is expected that the annual report and statutory consolidated financial
statements for the year ended 31 December 2024 will be approved by the Directors and reported on by the auditors in
March 2025.
The consolidated financial statements of the Group are prepared on a going concern basis of accounting. The
consolidated financial statements of the Group have been presented in Euro, which is the Company’s functional
currency.
The consolidated financial statements of the Group cover the 12-month period from 1 January 2024 to 31 December 2024.
The Group has not early adopted any forthcoming International Accounting Standards Board (“IASB”) standards. Note 2(s)
sets out details of such upcoming standards.
Going concern
The Group meets its day-to-day working capital requirements through its cash and deposit balances. The Group’s plans
indicate that it should have adequate resources to continue operating for the foreseeable future. The Group has a
strong consolidated statement of financial position with sufficient liquidity and flexibility in place to manage
through the potential headwinds in the current market. The Group can draw an additional €61 million from its RCF (as
defined below in note 10) while maintaining a maximum 50% Loan to value ratio as at 31 December 2024, as required by
REIT legislation. As at 31 December 2024, the undrawn RCF amount is €144 million. The Group generated positive
cashflows from operations for the year ended 31 December 2024. Accordingly, the Directors consider it appropriate that
the Group adopts the going concern basis of accounting in the preparation of the consolidated financial statements.
‘2. Material Accounting Policies (continued)
b. Basis of consolidation
These consolidated financial statements incorporate the financial statements of I-RES and its subsidiaries, IRES
Residential Properties Limited, IRES Fund Management Limited, IRES Residential Properties (Tara View) Limited and IRES
Residential Properties (Orion) Limited. I-RES controls these subsidiaries by virtue of its 100% shareholding in the
companies. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions
between members of the Group are eliminated in full on consolidation.
Subsidiaries
Subsidiaries are entities controlled by I-RES. I-RES controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the ability to affect these returns through its power
over the entity. The financial information of subsidiaries (except owners’ management companies) is included in the
consolidated financial statements from the date on which control commences until the date on which control ceases.
I-RES does not consolidate owners’ management companies in which it holds majority voting rights. For further details,
please refer to note 23.
c. Investment properties and investment properties under development
Investment properties
The Group considers its income properties to be investment properties under IAS 40, Investment Property (“IAS 40”) and
has chosen the fair value model to account for its investment properties in the consolidated financial statements.
Under IFRS 13, Fair Value Measurement (“IFRS 13”), fair value is defined as the price that would be received to sell
an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date.
Investment properties are treated as acquired at the time when the Group assumes the significant risks and returns of
ownership, which normally occurs when the conveyancing contract has been performed by both buyer and seller and the
contract has been deemed to have become unconditional and completed. Investment properties are deemed to have been
acquired when the buyer has assumed control of ownership and the contract has been completed.
Investment properties comprise investment interests held in land and buildings (including integral equipment) held for
the purpose of producing rental income, capital appreciation or both, but not for sale in the ordinary course of
business.
All investment properties are initially recorded at cost, which includes transaction and other acquisition costs, at
their respective acquisition dates and are subsequently stated at fair value at each reporting date, with any gain or
loss arising from a change in fair value recognised through profit or loss in the consolidated statement of profit or
loss and other comprehensive income for the period. Gains and losses (calculated as the difference between the net
proceeds from disposal and the carrying amount of the item) arising on the disposal of investment properties are also
recognised through profit or loss in the consolidated statement of profit or loss and other comprehensive income.
‘2. Material Accounting Policies (continued)
‘c) Investment properties and investment properties under development (continued)
The fair value of investment properties is determined by qualified independent valuers at each reporting date, in
accordance with the Royal Institution of Chartered Surveyors (“RICS”) Valuation Standards and IFRS 13. Each
independent valuer holds a recognised relevant professional qualification and has recent experience in the locations
and segments of the investment properties valued. At each reporting date, management undertakes a review of its
investment property valuations to assess the continuing validity of the underlying assumptions, such as future income
streams and yields used in the independent valuation report, as well as property valuation movements when compared to
the prior year valuation report and holds discussions with the independent valuer.
Investment properties under development
Investment properties under development include those properties, or components thereof, that will undergo activities
that will take a substantial period of time to prepare the properties for their intended use as income properties.
The cost of a development property that is an asset acquisition comprises the amount of cash, or the fair value of
other consideration, paid to acquire the property, including transaction costs. Subsequent to the acquisition, the
cost of a development property includes costs that are directly attributable to these assets, including development
costs and borrowing costs. These costs are capitalised when the activities necessary to prepare an asset for
development or redevelopment begin and continue until the date that construction is substantially complete and all
necessary occupancy and related permits have been received, whether or not the space is leased. Borrowing costs are
calculated using the Company’s weighted average cost of borrowing.
Properties under development are valued at fair value by qualified independent valuers at each reporting date with
fair value adjustments recognised in profit or loss in the consolidated statement of profit or loss and other
comprehensive income. In the case of investment property under development, the valuation approach applied is the
“residual method”, with a deduction for the costs necessary to complete the development together with an allowance for
the remaining risk.
Development land
Development land is also stated at fair value by qualified independent valuers at each reporting date with fair value
adjustments recognised in profit or loss in the consolidated statement of profit or loss and other comprehensive
income. In the case of development land, the valuation approach applied is the comparable sales approach, which
considers recent sales activity for similar land parcels in the same or similar markets. Land values are estimated
using either a per acre or per buildable square foot basis based on highest and best use. Such values are applied to
the Group’s properties after adjusting for factors specific to the site, including its location, highest and best use,
zoning, servicing and configuration.
‘2. Material Accounting Policies (continued)
‘c) Investment properties and investment properties under development (continued)
Key estimations of inherent uncertainty in investment property valuations
The fair values derived are based on anticipated market values for the properties, being the estimated amount that
would be received from a sale of the assets in an orderly transaction between market participants. The valuation of
the Group’s investment property portfolio is inherently subjective as it requires, among other factors, assumptions to
be made regarding the ability of existing residents to meet their rental obligations over the entire life of their
leases, the estimation of the expected rental income in the future, an assessment of a property’s ability to remain an
attractive technical configuration to existing and prospective residents in a changing market and a judgement to be
reached on the attractiveness of a building, its location and the surrounding environment. While these and other
similar matters are market-standard considerations in determining the fair value of a property in accordance with the
RICS methodology, they are all subjective assessments of future outturns and macroeconomic factors, which are outside
of the Group’s control or influence and therefore may prove to be inaccurate long-term forecasts.
As a result of all these factors, the ultimate valuation the Group places on its investment properties is subject to
some uncertainty and may not turn out to be accurate, particularly in times of macroeconomic volatility. The RICS
property valuation methodology is considered by the Board to be the valuation technique most suited to the measurement
of the fair value of property investments. It is also the primary measurement of fair value that all major and
reputable property market participants use when valuing a property investment. See note 5 for a detailed discussion of
the significant assumptions, estimates and valuation methods used.
d. Property asset acquisition
At the time of acquisition of a property or a portfolio of investment properties, the Group evaluates whether the
acquisition is a business combination or asset acquisition. The Group accounts for business combinations using the
acquisition method when the acquired set of activities and assets meets the definition of a business and control is
transferred to the Group. In determining whether a particular set of activities and assets is a business, the Group
assesses whether the set of assets and activities acquired includes, at a minimum, an input and substantive process
and whether the acquired set has the ability to produce outputs.
The Group has an option to apply a ‘concentration test’ that permits a simplified assessment of whether an acquired
set of activities and assets is not a business. The optional concentration test is met if substantially all of the
fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar
identifiable assets.
When an acquisition does not represent a business as defined under IFRS 3, the Group classifies these properties, or
portfolio of properties, as an asset acquisition. Identifiable assets acquired and liabilities assumed in an asset
acquisition are measured initially at their fair values at the acquisition date. Acquisition-related transaction costs
are capitalised to the property.
e. Property, plant and equipment
Property, plant and equipment are stated at historical cost less accumulated depreciation and mainly comprise of the
leased head office, head office fixtures and fittings and information technology hardware. These items are depreciated
on a straight-line basis over their estimated useful lives; the right of use building has a useful life of 20 years
and the fixtures and fittings have a useful life ranging from one to five years.
‘2. Material Accounting Policies (continued)
f. IFRS 9, Financial Instruments (“IFRS 9”)
Financial assets and financial liabilities
Under IFRS 9, financial assets and financial liabilities are initially recognised at fair value and are subsequently
accounted for based on their classification as described below. Their classification depends on the purpose for which
the financial instruments were acquired or issued, their characteristics and I-RES’ designation of such instruments.
The standard requires that all financial assets and financial liabilities be classified as fair value through profit
or loss (“FVTPL”), amortised cost or fair value through other comprehensive income (“FVTOCI”).
Derecognition of financial assets and financial liabilities
The Group derecognises a financial asset when:
• the contractual rights to the cash flows from the financial asset expire; or
• it transfers the rights to receive the contractual cash flows in a transaction in which either:
◦ substantially all of the risks and rewards of ownership of the financial asset are transferred; or
◦ the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not
retain control of the financial asset.
When the Group enters into transactions whereby it transfers assets recognised in its consolidated statement of
financial position but retains either all or substantially all of the risks and rewards of the transferred assets, the
transferred assets are not derecognised.
The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expire. The
Group also derecognises a financial liability when its terms are modified and the cash flows of the modified liability
are substantially different, in which case a new financial liability based on the modified terms is recognised at fair
value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the
consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss.
Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the consolidated statement of
financial position when, and only when, the Group currently has a legally enforceable right to set off the amounts and
it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.
2. Material Accounting Policies (continued)
‘f) IFRS 9, Financial Instruments (“IFRS 9”) (continued)
Classification of financial instruments
The following summarises the classification and measurement I-RES has elected to apply to each of its significant
categories of financial instruments:
Type Classification Measurement
Financial assets
Cash and cash equivalents Held to Collect Amortised cost
Other receivables Held to Collect Amortised cost
Derivative financial instruments FVTOCI Fair value through other comprehensive income
Financial liabilities
Bank indebtedness Other financial liabilities Amortised cost
Private placement notes Other financial liabilities Amortised cost
Accounts payable and accrued liabilities Other financial liabilities Amortised cost
Security deposits Other financial liabilities Amortised cost
Derivative financial instruments FVTOCI Fair value through other comprehensive income
Cash and cash equivalents
Cash and cash equivalents include cash and short-term investments with an original maturity of three months or less.
Interest earned or accrued on these financial assets is included in other income.
Other receivables
Such receivables arise when I-RES provides services to a third party, such as a resident, and are included in current
assets, except for those with maturities more than 12 months after the consolidated statement of financial position
date, which are classified as non-current assets. Loans and other receivables are included in other assets initially
at fair value on the consolidated statement of financial position and are subsequently accounted for at amortised
cost.
Other liabilities
Such financial liabilities are initially recorded at fair value and subsequently accounted for at amortised cost and
include all liabilities other than derivatives. Derivatives are at fair value through other comprehensive income.
FVTPL
Financial instruments in this category are recognised initially and subsequently at fair value. Gains and losses
arising from changes in fair value are presented within gain on derivative financial instruments in the consolidated
statement of profit or loss in the period in which they arise. Financial assets and liabilities at FVTPL are
classified as current, except for the portion expected to be realised or paid more than 12 months after the
consolidated statement of financial position date, which is classified as non-current. Derivatives are categorised as
FVTPL unless designated as hedges.
2. Material Accounting Policies (continued)
‘f) IFRS 9, Financial Instruments (“IFRS 9”) (continued)
Derivative financial instruments and hedge accounting
The Group utilises derivative financial instruments to hedge foreign exchange risk and interest rate risk exposures.
Embedded derivatives are separated from the host contract and accounted for separately if the host contract is not a
financial asset and certain criteria are met.
Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are remeasured at
fair value, with changes generally recognised through profit or loss.
The Group designates certain derivatives as hedging instruments to hedge the variability in cash flows associated with
highly probable forecast transactions arising from changes in foreign exchange rates and interest rates.
At inception of designated hedging relationships, the Group documents the risk management objective and strategy for
undertaking the hedge. The Group also documents the economic relationship between the hedged item and the hedging
instrument, including whether the changes in cash flows of the hedged item and hedging instrument are expected to
offset each other.
Cash flow hedges
When a derivative is designated as a cash flow hedging instrument, hedge accounting is used in line with IFRS 9. The
effective portion of changes in the fair value of the derivative is recognised in other comprehensive income (“OCI”)
and accumulated in the hedging reserve. The effective portion of changes in the fair value of the derivative that is
recognised in OCI is limited to the cumulative change in fair value of the hedged item, determined on a present value
basis, from inception of the hedge. Any ineffective portion of changes in the fair value of the derivative is
recognised immediately in profit or loss.
For all hedged forecast transactions, the amount accumulated in the hedging reserve is reclassified to financing costs
in the same period or periods during which the hedged expected future cash flows affect profit or loss.
If the hedge no longer meets the criteria for hedge accounting or the hedging instrument is sold, expires, is
terminated or is exercised, then hedge accounting is discontinued prospectively.
If the hedged future cash flows are no longer expected to occur, then the amounts that have been accumulated in the
hedging reserve are immediately reclassified to profit or loss.
g. IFRS 16, Leases
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset,
the Group uses the definition of a lease in IFRS 16.
2. Material Accounting Policies (continued)
‘g) IFRS 16, Leases (continued)
As a lessee
When the Group acts as a lessee, at commencement or on modification of a contract that contains a lease component, the
Group allocates the consideration in the contract to each lease component on the basis of its relative stand-alone
price.
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset
is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to
dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less
any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the
end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the
lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case
the right-of-use asset will be depreciated over the useful life of the underlying asset. In addition, the right-of-use
asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease
liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the
discount rate.
The Group determines its incremental borrowing rate by obtaining interest rates from various external financing
sources and makes certain adjustments to reflect the terms of the lease and the type of asset leased.
Lease payments included in the measurement of the lease liability comprise the following:
– fixed payments, including in-substance fixed payments;
– variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the
commencement date;
– amounts expected to be payable under a residual value guarantee; and
– the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an
optional renewal period if the Group is reasonably certain to exercise an extension option and penalties for early
termination of a lease unless the Group is reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is
a change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s
estimate of the amount expected to be payable under a residual value guarantee, if the Group changes its assessment of
whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease
payment.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the
right-of-use asset, or is recorded through profit or loss if the carrying amount of the right-of-use asset has been
reduced to zero.
2. Material Accounting Policies (continued)
‘g) IFRS 16, Leases (continued)
The Group presents right-of-use assets that do not meet the definition of investment property in ‘Property, plant and
equipment’ and lease liabilities in ‘Lease liability’ in the statement of financial position.
As a lessor
When the Group acts as a lessor, it determines at lease commencement whether each lease is a finance lease or an
operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers to the
lessee substantially all of the risks and rewards incidental to ownership of the underlying assets. If this is the
case, then the lease is a finance lease; if not, then it is an operating lease. As part of the assessment, the Group
considers certain indicators such as whether the lease is for the major part of the economic life of the asset, the
present value of lease payments and any option included in the lease. The Group has determined that all of its leases
are operating leases.
When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease
separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from
the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Group
applies the exemption described above, then it classifies the sub-lease as an operating lease.
On modification of a contract that contains a lease component and a non-lease component, I-RES allocates the
consideration in the contract to each of the components on the basis of their relative stand-alone prices.
Tenant inducements
Incentives such as cash, rent-free periods and move-in allowances may be provided to lessees who enter into a lease.
The incentives are written off on a straight-line basis over the term of the lease as a reduction of rental revenue.
Early termination of leases
When the Group receives rent loss payments from a tenant for the early termination of a lease, it is reflected in the
accounting period in which the rent loss payment occurred.
Expected credit loss (“ECL”)
The Group recognises a loss allowance for expected credit losses on trade receivables and other financial assets. The
amount of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition of the
respective financial instrument. Loss allowances for trade receivables (including lease receivables) are always
measured at an amount equal to lifetime ECLs. Lifetime ECLs are the ECLs that result from all possible default events
over the expected life of a financial instrument. When determining whether the credit risk of a financial asset has
increased significantly since initial recognition and when estimating ECLs, the Group considers reasonable and
supportable information that is relevant and available without undue cost or effort. This includes both quantitative
and qualitative information and analysis, based on the Group’s historical experience and informed credit assessment,
that includes forward-looking information.
The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days
past due.
For individual residential customers, the Group has a policy of writing off the gross carrying amount when the
financial asset is 30 days past due based on historical experience of recoveries of similar assets.
2. Material Accounting Policies (continued)
h. IFRS 15, Revenue from Contracts with Customers (“IFRS 15”)
I-RES retains substantially all of the risks and benefits of ownership of its investment properties and therefore
accounts for leases with its tenants as operating leases. Rent represents lease revenue earned from the conveyance of
the right to use the property, including access to common areas, to a lessee for an agreed period of time. The
contract also contains a performance obligation that requires I-RES to maintain the common areas to an agreed
standard. This right of use and performance obligation is governed by a single rental contract with the tenant. In
accordance with IFRS 16 Leases, I-RES has evaluated the lease and non-lease components of its rental revenue and has
determined that common area maintenance services constitute a single non-lease element, which is accounted for as one
performance obligation under IFRS 15 and is recognised separately to Rental Income as revenue under IFRS 15.
Rental revenue includes amounts earned from tenants under the rental contract which are allocated to the lease and
non-lease components based on relative stand-alone selling prices. The stand-alone selling prices of the lease
components are determined using an adjusted market assessment approach and the stand-alone selling prices of the
service components are determined using the input method based on the expected costs plus an estimated market-based
margin for similar services.
Rental income from the operating lease component is recognised on a straight-line basis over the lease term in
accordance with IFRS 16 Leases. When I-RES provides incentives to its tenants, the cost of such incentives is
recognised over the lease term, on a straight-line basis, as a reduction of revenue.
Revenue from maintenance services represents the service component of the REIT’s rental contracts and is accounted for
in accordance with IFRS 15. These services consist primarily of the recovery of utilities, property and other common
area maintenance and amenity costs where I-RES has determined it is acting as a principal.
These services constitute a single non-lease component, which is accounted for as one performance obligation under
IFRS 15 as the individual activities that comprise these services are not distinct in the context of the contract. The
individual activities undertaken to meet the performance obligation may vary from time to time but cumulatively the
activities undertaken to meet the performance obligation are relatively consistent over time. The tenant
simultaneously receives and consumes the benefits provided under the performance obligation as I-RES performs the
obligation and consequently revenue is recognised over time, typically on a monthly basis, as the services are
provided.
i. Operating segments
The Group operates and is managed as one business segment, namely property investment, with all investment properties
located in Ireland. The operating segment is reported in a manner consistent with the internal reporting provided to
the chief operating decision-maker, which has been identified as the I-RES Board.
j. Statement of cash flows
Cash and cash equivalents consist of cash on hand and balances with banks. Investing and financing activities that do
not require the use of cash or cash equivalents are excluded from the consolidated statement of cash flows and are
disclosed separately in the notes to the consolidated financial statements. Interest paid is classified as financing
activities.
2. Material Accounting Policies (continued)
k. Income taxes
Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any
adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payable or
receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to
income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date. Current
tax also includes any tax arising from dividends.
Current tax assets and liabilities are offset only if certain criteria are met.
I-RES elected for REIT status on 31 March 2014. As a result, from that date I-RES does not pay Irish corporation tax
on the profits and gains from its qualifying rental business in Ireland, provided it meets certain conditions.
Corporation tax is payable in the normal way in respect of income and gains from any residual business (generally
including any property trading business) not included in the Property Rental Business. I-RES is liable to pay other
taxes such as VAT, stamp duty, land tax, local property tax and payroll taxes in the normal way.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the amounts used for taxation purposes.
The measurement of deferred tax reflects the tax consequences that would follow the manner in which the Group expects,
at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred
tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax
rates enacted or substantively enacted at the reporting date.
l. Equity and share issue costs
The equity of I-RES consists of ordinary shares issued. Shares issued are recorded at the date of issuance. Direct
issue costs in respect of the issue of shares are accounted for as a deduction from retained earnings. The excess
consideration for shares above nominal value is recorded as share premium.
m. Net asset value (“NAV”)
The NAV is calculated as the value of the Group’s assets less the value of its liabilities, measured in accordance
with IFRS and in particular will include the Group’s property assets at their fair value assessed independently by
valuers.
n. Share-based payments
I-RES has determined that the options and restricted share units issued to senior executives qualify as
“equity-settled share-based payment transactions” as per IFRS 2. In addition, any options issued to the directors and
employees also qualify as equity-settled share-based payment transactions. The fair value of the options measured on
the grant date will be expensed over the graded vesting term with a corresponding increase in equity. The fair value
for all options granted is measured using the Black-Scholes model.
2. Material Accounting Policies (continued)
‘n) Share-based payments (continued)
The grant-date fair value of restricted share units issued to senior employees is generally recognised as an expense,
with a corresponding increase in equity, over the vesting period of the awards. The fair value for all restricted
share units granted is measured using a Monte Carlo simulation. The amount recognised as an expense is adjusted to
reflect the number of awards for which the related service and non-market performance conditions are expected to be
met, such that the amount ultimately recognised is based on the number of awards that meet the related service and
non-market performance conditions at the vesting date. For share-based payment awards with non-vesting conditions, the
grant-date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for
differences between expected and actual outcomes.
o. Property taxes
Property taxes are paid annually and recognised as an expense evenly throughout the year.
p. Security deposits
Security deposits are amounts received from tenants at the beginning of a tenancy. When a tenant is no longer in
occupancy, the Group will assess whether there was damage to the property above normal wear and tear for which
deductions may be made to their deposit. Once the inspections and repairs are calculated, the remaining security
deposit is returned to the tenant.
q. Pension
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan
under which a company pays fixed contributions into a separate entity. Once the contributions have been paid, the
Company has no further obligations. The contributions are recognised as an expense when they are due. The amounts that
are not paid are shown as accruals in the consolidated statement of financial position. The assets of the plan are
held separately from those of the Company in an independently administered fund.
r. Assets held for sale
Non-current assets are classified as held-for-sale if it is highly probable that the assets will be recovered
primarily through sale rather than through continuing use.
Such assets are generally measured at the lower of their carrying amount and fair value less costs to sell. Impairment
losses on initial calculation as held-for-sale and subsequent gains or losses on remeasurement are recognised in the
consolidated statement of profit or loss and other comprehensive income.
2. Material Accounting Policies (continued)
s. Impact expected from new or amended standards
The following standards and amendments are under review and are not expected to have a significant impact on reported
results or disclosures of the Group. They were not effective at the financial year end 31 December 2024 and have not
been applied in preparing these consolidated financial statements. The Group will apply the new standards from the
effective date. The potential impact of these standards on the Group is under review.
Lack of Exchangeability – Amendments to IAS 21
Effective Date 1 January 2025
Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7
Effective Date 1 January 2026
IFRS 18 Presentation and Disclosure in Financial Statements
Effective Date 1 January 2027
3. Critical Accounting Estimates, Assumptions and Judgements
The preparation of the consolidated financial statements in accordance with IFRS requires the use of estimates,
assumptions and judgements that in some cases relate to matters that are inherently uncertain and which affect the
amounts reported in the consolidated financial statements and accompanying notes. Areas of such estimation include,
but are not limited to, valuation of investment properties and valuation of financial instruments. Changes to
estimates and assumptions may affect the reported amounts of assets and liabilities and the disclosure of contingent
assets and liabilities at the date of the consolidated financial statements, as well as the reported amounts of
revenue and expenses during the reporting period. Actual results could differ from those estimates under different
assumptions and conditions.
The valuation estimate of investment properties is deemed to be significant. See note 19(a) and note 5 for a detailed
discussion of valuation methods and the significant assumptions and estimates used.
4. Recent Investment Property Acquisitions, Developments and Disposals
For the year 1 January 2024 to 31 December 2024
Disposals
Name Other Land and Property Unit Count Region Net proceeds from disposal
€'000
Harty’s Quay 45 Cork 10,675
Individual units 21 South Dublin, North Dublin, Cork 7,728
Total 66 18,403
For the year 1 January 2023 to 31 December 2023
Disposals
Name Other Land and Property Unit Count Region Net proceeds from disposal
€'000
Rockbrook Site Development Site — South Dublin 14,596
Bakers Yard 6 City Centre 1,444
Tara View 4 South Dublin 4,077
Hansfield Wood and Pipers Court 194 West Dublin 68,555
Total 204 88,672
5. Investment Properties
Valuation basis
Investment properties are carried at fair value, which is the amount at which the individual properties could be sold
in an orderly transaction between market participants at the measurement date, considering the highest and best use of
the asset, with any gain or loss arising from a change in fair value recognised through profit or loss in the
consolidated statement of profit or loss and other comprehensive income for the year.
The Group uses Savills and CBRE as external independent valuers. The Group’s investment property is rotated between
these valuers on a periodic basis. The valuers fair valued all of the Group’s investment properties as at 31 December
2024. The valuers employ qualified valuation professionals who have recent experience in the location and category of
the respective properties. Valuations are prepared on a bi-annual basis at the interim reporting date and the annual
reporting date.
The information provided to the valuers and the assumptions, valuation methodologies and models used by the valuers,
are reviewed by management. The valuers meet with the Audit Committee and discuss directly the valuation results as at
30 June and 31 December. The Board determines the Group’s valuation policies and procedures for property valuations.
The Board decides which independent valuers to appoint for the external valuation of the Group’s properties. Selection
criteria include market knowledge, reputation, independence and whether professional standards are maintained.
Investment property producing income
For investment property producing income, the income approach/yield methodology involves applying market-derived
yields to current and projected future income streams. These yields and future income streams are derived from
comparable property transactions and are considered to be the key inputs in the valuation. Other factors that are
taken into account include the tenure of the lease, tenancy details and planning, building and environmental factors
that might affect the property.
Development land
In the case of development land, the approach applied is the comparable sales approach, which considers recent sales
activity for similar land parcels in the same or similar markets. Land values are estimated using either a per acre or
per buildable square foot basis based on highest and best use. Such values are applied to the Group’s properties after
adjusting for factors specific to the site, including its location, zoning, servicing and configuration.
Assets held for sale
At 31 December 2024, I-RES has identified 13 units across 5 properties as assets held for sale amounting to €4.0
million. Management has committed to a plan to sell these properties, which are available for immediate sale, and we
expect the disposals to close in the next twelve months.
Information about fair value measurements using unobservable inputs (Level 3)
At 31 December 2024, the Group considers that all of its investment properties fall within Level 3 fair value as
defined by IFRS 13. As outlined in IFRS 13, a Level 3 fair value recognises that the significant inputs and
considerations made in determining the fair value of property investments cannot be derived from publicly available
data, as the valuation methodology in respect of a property also has to rely on a number of unobservable inputs
including technical reports, legal data, building costs, rental analysis (including rent moratorium), professional
opinion on profile, lot size, layout and presentation of accommodation. In addition, the valuers utilise proprietary
databases maintained in respect of properties similar to the assets being valued.
The Group tests the reasonableness of all significant unobservable inputs, including yields and stabilised net rental
income (“Stabilised NRI”) used in the valuation and reviews the results with the independent valuers for all
valuations. The Stabilised NRI represents cash flows from property revenue less property operating expenses, adjusted
for market-based assumptions such as market rents, short term and long term vacancy rates, bad debts, management fees
and repairs and maintenance. These cashflows are estimates for current and projected future income streams.
‘5. Investment Properties (continued)
Sensitivity analysis
Stabilised NRI and “Equivalent Yields” are key inputs in the valuation model used.
Equivalent Yield is the rate of return on a property investment based on current and projected future income streams
that such property investment will generate. This is derived by the external valuers and is used to set the term and
reversionary yields.
For example, completed properties are valued mainly using a term and reversion model. For the existing rental contract
or term, estimated Stabilised NRI is based on the expected rents from residents over the period to the next lease
break option or expiry. After this period, the reversion, estimated Stabilised NRI is based on expectations from
current market conditions. Thus, a decrease in the estimated Stabilised NRI will decrease the fair value and an
increase in the estimated Stabilised NRI will increase the fair value.
The Equivalent Yields magnify the effect of a change in Stabilised NRI, with a lower yield resulting in a greater
effect on the fair value of investment properties than a higher Equivalent Yield.
For investment properties producing income, properties held for sale and investment properties under development, an
increase of 1% in the Equivalent Yield would have the impact of a €179 million reduction in fair value while a
decrease of 1% in the Equivalent Yield would result in a fair value increase of €253 million. An increase between 1% -
4% in Stabilised NRI would result in a fair value increase extending from €12 million to €49 million respectively in
fair value, while a decrease between 1% - 4% in Stabilised NRI would have an impact ranging from €12 million to €49
million reduction respectively. I-RES believes that this range of change in Stabilised NRI is a reasonable estimate in
the next twelve months based on expected changes in net rental income.
The direct operating expenses recognised in the consolidated statement of profit or loss and other comprehensive
income for the Group is €19.8 million for the year ended 31 December 2024 (31 December 2023: €19.9 million), arising
from investment property that generated rental income during the period. The direct operating expenses are comprised
of the following significant categories: property taxes, utilities, repairs and maintenance, wages, insurance, service
charges and IT costs.
The direct operating expenses recognised in the consolidated statement of profit or loss and other comprehensive
income arising from investment property that did not generate rental income for the year ended 31 December 2024 and 31
December 2023 was not material.
An investment property is comprised of various components, including undeveloped land and vacant residential and
commercial units; no direct operating costs were specifically allocated to these separate components.
5. Investment Properties (continued)
Quantitative information
A summary of the Equivalent Yields and ranges along with the fair value of the total portfolio of the Group as at 31
December 2024 is presented below:
As at 31 December 2024
Fair Value WA Stabilised NRI(1)
Type of Interest Rate Type(2) Max. Min. Weighted Average
€'000 €'000
Income properties(4) 1,226,995 3,273 Equivalent Yield 6.54% 4.77% 5.89%
Development land(3) 5,200 n/a Market Comparable €95.4 €44.5 €82.2
(per sq ft.)
Total investment properties(4) 1,232,195
(1) WA Stabilised NRI is the NRI of each property weighted by its fair value over the total fair value of the
investment properties (“WA NRI”). The WA Stabilised NRI is an input to determine the fair value of the investment
properties.
(2) The Equivalent Yield disclosed above is provided by the external valuers.
(3) Development land is fair valued based on the value of the undeveloped site per square foot or per unit of planning
permission.
(4) Including assets held for sale.
As at 31 December 2023
Fair Value WA Stabilised NRI(1)
Type of Interest Rate Type(2) Max. Min. Weighted Average
€'000 €'000
Income properties 1,268,550 3,183 Equivalent Yield 6.27% 4.50% 5.58%
Development land(3) 5,810 n/a Market Comparable €106.8 €46.5 €92.3
(per sq ft.)
Total investment properties 1,274,360
(1) WA Stabilised NRI is the NRI of each property weighted by its fair value over the total fair value of the
investment properties (“WA NRI”). The NRI is input to determine the fair value of the investment properties.
(2) The Equivalent Yield disclosed above is provided by the external valuers.
(3) Development land is fair valued based on the value of the undeveloped site per square foot or per unit of planning
permission.
5. Investment Properties (continued)
The following table summarises the changes in the investment properties portfolio during the periods:
Reconciliation of carrying amounts of investment properties
For the year ended 31 December 2024
Properties Development
Income Properties Total
Under Development Land
€'000 €'000 €'000 €'000
Balance at the beginning of the year 1,268,550 — 5,810 1,274,360
Transfer(3) (3,957) — — (3,957)
Property capital investments 9,156 — — 9,156
Capitalised leasing costs(1) (795) — — (795)
Direct leasing costs(2) — — — —
Disposals (16,781) — — (16,781)
Unrealised fair value movements (33,135) — (610) (33,745)
Balance at the end of the year 1,223,038 — 5,200 1,228,238
For the year ended 31 December 2023
Income Properties Development
Total
Properties Under Land
Development
€'000 €'000 €'000 €'000
Balance at the beginning of the year 1,477,168 — 21,830 1,498,998
Property capital investments 7,590 — — 7,590
Capitalised leasing costs(1) (876) — — (876)
Direct leasing costs(2) (28) — — (28)
Disposals (74,533) — (15,000) (89,533)
Unrealised fair value movements (140,771) — (1,020) (141,791)
Balance at the end of the year 1,268,550 — 5,810 1,274,360
(1) Straight-line rent adjustment for commercial leasing.
(2) Includes cash outlays for leasing.
(3) Assets held for sale amounting to €4.0 million were transferred from investment properties during the period.
The vast majority of the residential leases are for one year or less.
The carrying value of the Group investment properties of €1,228.2 million at 31 December 2024 (€1,274.4 million at 31
December 2023) was based on external valuations carried out as at that date. The valuations were prepared in
accordance with the RICS Valuation – Global Standards, 2020 (Red Book) and IFRS 13.
6. Leases
Leases as lessee (IFRS 16)
The Group has used an incremental borrowing rate of 2.48% to determine the lease liability. Information about leases
for which the Group is a lessee is presented below.
Right-of-use assets
Land and Buildings
For the year ended 31 December 2024
(€’000)
Balance at the beginning of the period 8,058
Depreciation charge for the year (548)
Lease reassessment 2,201
Balance at the end of the year (Note 7) 9,711
Land and Buildings
For the year ended 31 December 2023
(€’000)
Balance at the beginning of the year 8,564
Depreciation charge for the year (506)
Balance at the end of the year (Note 7) 8,058
Amounts recognised in profit or loss
For the year ended 31 December 2024, I-RES recognised interest on lease liabilities of €296,000 (31 December 2023:
€212,000).
Amounts recognised in statement of cash flows
For the year ended 31 December 2024, I-RES’s total cash outflow for leases was €471,000 (31 December 2023: €416,000).
Refer to note 22 for movements in the lease liability.
Lease as lessor
The Group leases out its investment property consisting of its owned residential and commercial properties as well as
a portion of the leased property. All leases are classified as operating leases from a lessor perspective. See note 15
for an analysis of the Group’s rental income.
7. Property, Plant and Equipment
Land and Buildings Furniture and Fixtures Total
(Note 6)
€'000 €'000 €’000
At cost
As at 1 January 2024 10,114 257 10,371
Additions — 36 36
Disposals(1) — (67) (67)
Lease reassessment 2,201 — 2,201
As at 31 December 2024 12,315 226 12,541
Accumulated depreciation
As at 1 January 2024 (2,056) (107) (2,163)
Charge for the year (548) (43) (591)
Disposals(1) — 67 67
As at 31 December 2024 (2,604) (83) (2,687)
As at 31 December 2024 9,711 143 9,854
1. Disposals relate to the write off of fully depreciated assets during the year. No gain or loss arose on this
disposal.
Land and Buildings Furniture and Fixtures Total
(Note 6)
€'000 €'000 €'000
At cost
As at 1 January 2023 10,114 231 10,345
Additions — 26 26
Disposals — — —
As at 31 December 2023 10,114 257 10,371
Accumulated depreciation
As at 1 January 2023 (1,550) (77) (1,627)
Charge for the year (506) (30) (536)
Disposals — — —
As at 31 December 2023 (2,056) (107) (2,163)
As at 31 December 2023 8,058 150 8,208
8. Other Current Assets
As at 31 December 2024 31 December 2023
€'000 €'000
Other Current Assets
Prepayments(1) 3,481 5,346
Trade receivables 1,395 966
Total 4,876 6,312
(1) Includes prepaid costs such as OMC Service charges, insurance and in 2023 costs associated with ongoing
transactions.
9. Accounts Payable and Accrued Liabilities
As at 31 December 2024 31 December 2023
€'000 €'000
Accounts Payable and Accrued Liabilities(1)
Rent - early payments 3,849 3,722
Trade creditors 975 800
Accruals(2) 8,962 10,732
Value Added Tax 329 421
Total 14,115 15,675
(1) The carrying value of all accounts payable and accrued liabilities approximates their fair value.
(2) Includes property related accruals, development accruals and professional fee accruals,
10. Bank indebtedness
As at 31 December 2024 31 December 2023
€'000 €'000
Bank Indebtedness
Loan drawn down 355,870 373,020
Deferred loan costs (673) (1,665)
Total 355,197 371,355
The Revolving Credit Facility of €500 million is secured by a floating charge over assets of the Company, IRES
Residential Properties Limited and a fixed charge over the shares held by the Company in its subsidiaries, IRES
Residential Properties Limited and IRES Fund Management Limited, on a pari passu basis. This facility is being
provided by Barclays Bank Ireland PLC, The Governor and Company of the Bank of Ireland, Allied Irish Banks, p.l.c. and
HSBC Continental Europe.
The interest on the RCF is set at the annual rate of 1.75%, plus the one-month or three-month EURIBOR rate (at the
option of I-RES). There are commitment fees charged on the undrawn loan amount of the RCF. The effective interest rate
for the RCF during the year was 4.78% (2023: 4.46%). On 14 December 2022, I-RES entered into hedging arrangements to
fix the interest cost on €275m of the RCF. See further details in note 18.
‘10. Bank indebtedness (continued)
On 11 February 2022, the Company exercised an option for an extension with all five banks (Ulster Bank Ireland DAC,
The Governor and Company of the Bank of Ireland, Allied Irish Banks, p.l.c., Barclays Bank Ireland PLC and HSBC
Continental Europe) for the entire €600 million facility with a new maturity date of 18 April 2026. On 22 December
2023, the Company served a notice of cancellation per the agreement to reduce the facility by €100m with effect from 4
January 2024, thus reducing the overall facility to €500 million.
The financial covenants in relation to the RCF principally relate to Loan to Value and Interest Cover Ratio. I-RES has
complied with all its debt financial covenants to which it was subject during the period. Gross Loan to Value has
remained below the required 50% at 45.0%. In November 2023, the Company agreed with the RCF syndicate and Private
Placement Noteholders to amend the current Interest Cover covenant from 200% to 175% until maturity of the RCF in
April 2026. Interest Cover has remained above the requirement of 175% at 242% for the year ended 31 December 2024.
11. Private Placement Notes
On 11 March 2020, I-RES successfully closed the issue of €130 million notes and IRES Residential Properties Limited,
its subsidiary, closed the issue of USD $75 million notes on a private placement basis (collectively, the “Notes”).
The Notes have a weighted average fixed interest rate of 1.92% inclusive of a USD/Euro swap and an effective interest
rate of 2.07%. Interest is paid semi-annually on 10 March and 10 September.
The Notes have been placed in four tranches:
As at 31 December 2024 31 December 2023
Maturity Contractual interest Derivative Rates €'000 €'000
rate
EUR Series A Senior Secured 10 March 2030 1.83% n/a 90,000 90,000
Notes
EUR Series B Senior Secured 10 March 2032 1.98% n/a 40,000 40,000
Notes
USD Series A Senior Secured 10 March 2027 3.44% 1.87% 48,277 45,261 (1)
Notes
USD Series B Senior Secured 10 March 2030 3.63% 2.25% 24,138 22,631 (2)
Notes
202,415 197,892
Deferred financing costs, (1,424) (1,767)
net
Total 200,991 196,125
(1) The principal amount of the USD Series A Senior Secured Notes is USD $50 million.
(2) The principal amount of the USD Series B Senior Secured Notes is USD $25 million.
The Notes are secured by a floating charge over the assets of the Group and a fixed charge over the shares held by the
Company in IRES Residential Properties Limited on a pari passu basis.
The financial covenants in place in relation to the Private Placement Notes are aligned with the RCF. See note 10 for
further details. In the event that the interest cover ratio falls below 200% but above 175%, a coupon bump of 0.75%
will apply against the principal of the outstanding notes. This would remain in place until the interest cover was
brought above 200%.
12. Share-based Compensation
a. Options
Options are issuable pursuant to I-RES’ share-based compensation plan, namely, the long-term incentive plan (“LTIP”).
For details on options granted under the LTIP, please refer to the statutory financial statements prepared for the
year ended 31 December 2023. As at 31 December 2024, the maximum number of additional options, or Restricted Share
Units (“RSU”) issuable under the LTIP is 44,984,779 (31 December 2023: 19,786,557).
LTIP
For the year ended WA exercise price 31 December 2024 31 December 2023
Share Options outstanding as at 1 January 1.61 4,596,499 4,596,499
Issued, cancelled or granted during the period — —
Exercised or settled — —
Share Options outstanding as at 31 December(1) 1.61 4,596,499 4,596,499
1. Of the Share Options outstanding above, 4,596,499 were exercisable at 31 December 2024 (31 December 2023:
4,596,499) until 30 April 2025 with a range of exercise price of €1.489 to €1.71.
The fair value of options has been determined as at the grant date using the Black-Scholes model.
b. Restricted Stock Unit Awards
Restricted Stock Units (“RSUs”) were first awarded in the year ended 31 December 2020. Under the Remuneration Policy,
recipients of RSUs are granted a variable number of equity instruments depending on their salary. The awards are
subject to vesting against market and non-market based conditions. A summary of the awards is set out in the table
below. All awards are outstanding at 31 December 2024.
EPS Growth TSR Performance Total Accounting Return % Reduction in Scope 1 and
Date of award Number of awards (% of award) Scope 2 combined greenhouse
(% of award) (% of award) gas emissions
23 February 2022 685,402 50% 50% — —
10 August 2022 57,980 50% 50% — —
15 March 2023 1,245,172 50% 50% — —
28 May 2024 1,166,544 30% 30% 30% 10%
During the period, 557,339 awards granted in 2021 did not vest and therefore lapsed.
There is between a 24 month and 61 month holding period post vesting, but this is not subject to measurement as all
conditions terminate on vesting. The LTIP awards are measured as follows:
Market-based condition: The expected performance of I-RES shares over the vesting period is calculated using a Monte
Carlo simulation. Inputs are share price volatility for I-RES and the average growth rate. These inputs are calculated
with reference to relevant historical data and financial models. It should be recognised that the assumption of an
average growth rate is not a prediction of the actual level of returns that will be achieved. The volatility
assumption in the distribution gives a measure of the range of outcomes that may occur on either side of this average
value. This is used to amortise the fair value of an expected cost over the vesting period. On vesting, any difference
in amounts accrued versus actual is amended through reserves.
‘12. Share-based Compensation (continued)
Non-market-based conditions: The fair value of the shares to be issued is determined using the grant date market
price. The expected number of shares is calculated based on the expectations of the number of shares which may vest at
the vesting date and amortised over the vesting period. At each reporting date, the calculation of the number of
shares is revised according to current expectations or performance.
The awards are subject to various criteria as outlined in the table above. The TSR measure is relative to constituents
of the FTSE EPRA/NAREIT Europe Developed Index for the 2021-2022 awards. The 2023 and 2024 awards are relative to the
residential subsector of this index for TSR. Results and inputs are summarised in the table below:
2024 RSU Awards 2023 RSU Awards 2022 RSU Awards
Fair value per award (TSR tranche) (per share) €0.44 €0.48 €0.70 to €0.75
Inputs
Three year Risk free interest rate (%) 3.01% 2.63% 0.04% to 0.87%
Three year Historical volatility 24.09% 24.13% 26.84% to 28.26%
Fair value per award (EPS tranche) (per share) €0.84 €0.87 €1.24 to €1.36
Inputs
Two year Risk free interest rate (%) 3.08% 2.66% (0.17%) to 0.70%
Two year Expected volatility 24.13% 23.98% 23.42% to 29.08%
The expected volatility is based on historic market volatility prior to the issuance.
The total share-based compensation expense relating to options for the year ended 31 December 2024 was €nil (31
December 2023: €nil) and total share-based compensation expense relating to restricted stock unit awards for the year
ended 31 December 2024 was €305,000 (31 December 2023: €153,000).
13. Shareholders' Equity
All equity shares outstanding are fully paid and are voting shares. Equity shares represent a shareholder’s
proportionate undivided beneficial interest in I-RES. No equity share has any preference or priority over another. No
shareholder has or is deemed to have any right of ownership in any of the assets of I-RES. Each share confers the
right to cast one vote at any meeting of shareholders and to participate pro rata in any distributions by I-RES and,
in the event of termination of I-RES, in the net assets of I-RES remaining after satisfaction of all liabilities.
Shares are to be issued in registered form and are transferable.
The number of shares authorised is as follows:
For the year ended 31 December 2024 31 December 2023
Authorised Share Capital 1,000,000,000 1,000,000,000
Ordinary shares of €0.10 each
The number of issued and outstanding ordinary shares is as follows:
For year ended 31 December 2024 31 December 2023
Ordinary shares outstanding, beginning of period 529,578,946 529,578,946
New shares issued — —
Ordinary shares outstanding, end of year 529,578,946 529,578,946
14. Cash and Cash Equivalents
31 December 2024 31 December 2023
For the year ended
€’000 €’000
Cash and cash equivalents 7,350 7,864
Cash and cash equivalents include cash at bank held in current accounts. The management of cash is discussed in note
19. The Group holds funds in excess of its regulatory minimum capital requirement at all times.
15. Revenue from Investment Properties
I-RES generates revenue primarily from the rental income from investment properties. Rental income represents lease
revenue earned from the conveyance of the right to use the property, including access to common areas, to a lessee for
an agreed period of time. The rental contract also contains an undertaking that common areas and amenities will be
maintained to a certain standard. This right of use of the property and maintenance performance obligation is governed
by a single rental contract with the tenant. I-RES has evaluated the lease and non-lease components of its rental
revenue and has determined that common area maintenance services constitute a single non-lease element, which is
accounted for as one performance obligation under IFRS 15 and is recognised separately to Rental Income.
31 December 2024 31 December 2023
For the year ended
€'000 €'000
Rental Income 73,210 75,004
Revenue from services 10,185 11,001
Car park income 1,878 1,849
Revenue from contracts with customers 12,063 12,850
Total Revenue 85,273 87,854
16. General and Administrative Expenses
31 December 2024 31 December 2023
For the year ended
€'000 €'000
General and administrative expenses 11,935 11,747
Total recurring general and administrative expenses 11,935 11,747
Non-recurring costs 3,411 939
Total General and administrative expenses 15,346 12,686
General and administrative expenses include costs such as director fees, executives’ and employees’ salaries,
professional fees for audit, legal and advisory services, depositary fees, property valuation fees, insurance costs
and other general and administrative expenses. Non-recurring G&A costs were primarily related to the Activism
interaction and EGM (€1.5 million), costs incurred in relation to the Strategic Review (€1.1 million) and abortive
transaction costs of €0.8 million.
17. Financing costs
31 December 2024 31 December 2023
For the year ended
€'000 €'000
Financing costs on RCF 22,200 24,252
Financing costs on private placement debt 5,171 5,165
Foreign exchange loss/(gain) on private placement debt 4,523 (2,215)
Reclassified from OCI (8,505) (507)
Total Financing costs 23,389 26,695
18. Realised and Unrealised Gains and Losses on Derivative Financial Instruments
Cross-currency swap
On 12 February 2020, I-RES entered into a cross-currency swap to (i) hedge the US-based loan of USD $75 million into
€68.9 million effective 11 March 2020 and (ii) convert the fixed interest rate on the US-based loan to a fixed Euro
interest rate, maturing on 10 March 2027 and 10 March 2030 (see note 11 for derivative fixed rates). This hedging
agreement is accounted for as a cashflow hedge in accordance with the requirements of IFRS 9. Hedges are measured for
effectiveness at each reporting date with the effective portion being recognised in equity in the hedging reserve and
the ineffective portion being recognised through profit or loss within financing costs.
For the year ended 31 December 2024 the ineffective portion that has been recorded in the consolidated statement of
profit or loss and other comprehensive income was a loss of €104,000 (31 December 2023: gain of €86,000). The fair
value of the effective portion of €4,095,000 (31 December 2023: loss of €3,035,000) was included in the cash flow
hedge reserve along with a gain on hedging of €418,000 (31 December 2023: gain on hedging of €362,000). The fair value
of the cash flow hedge was an asset of €2,767,000 and a liability of €nil at 31 December 2024 (31 December 2023: asset
of €969,000 and liability of €1,594,000).
Interest rate swap
On 14 December 2022, I-RES entered into hedging arrangements in respect of its RCF, specifically interest rate swap
agreements aggregating to €275 million until maturity of the facility, converting this portion of the facility into a
fixed interest rate of 2.5% plus margin of 1.75%. For the year ended 31 December 2024, the fair value of the effective
portion of €1,730,000 (31 December 2023: loss of €3,125,000) has been recorded in the consolidated statement of profit
or loss and other comprehensive income. The fair value of the interest rate swaps was an asset of €3,000 and a
liability of €1,557,000 at 31 December 2024 (31 December 2023: asset of €1,910,000 and liability of €2,073,000).
19. Financial Instruments, Investment Properties and Risk Management
a. Fair Value of Financial Instruments and Investment Properties
The Group classifies and discloses the fair value for each class of financial instrument based on the fair value
hierarchy in accordance with IFRS 13. The fair value hierarchy distinguishes between market value data obtained from
independent sources and the Group’s own assumptions about market value. The hierarchy levels are defined below:
Level 1 - Inputs based on quoted prices in active markets for identical assets or liabilities;
Level 2 - Inputs based on factors other than quoted prices included in Level 1 and may include quoted prices for
similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability
(other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals;
and
Level 3 - Inputs which are unobservable for the asset or liability and are typically based on the Group’s own
assumptions as there is little, if any, related market activity.
The Group’s assessment of the significance of a particular input to the fair value measurement in its entirety
requires judgement and considers factors specific to the asset or liability.
The following table presents the Group’s estimates of fair value on a recurring basis based on information available
as at 31 December 2024, aggregated by the level in the fair value hierarchy within which those measurements fall.
As at 31 December 2024, the fair value of the Group’s private placement debt is estimated to be €175.3 million (31
December 2023: €168.4 million) due to changes in interest rates since the private placement debt was issued and the
impact of the passage of time on the fixed rate of the private placement debt. The fair value of the private placement
debt is based on discounted future cash flows using rates that reflect current rates for similar financial instruments
with similar duration, terms and conditions, which are considered Level 2 inputs. The private placement debt is
recorded at amortised cost of €201.0 million (31 December 2023: €196.1 million).
As at 31 December 2024, the fair value of the Group’s RCF is estimated to be €356.9 million (31 December 2023: €373.4
million). The fair value is based on the margin rate and EURIBOR forward curve at the reporting date. The RCF is
recorded at amortised cost of €355.2 million at 31 December 2024 (31 December 2023: €371.3 million).
‘19. Financial Instruments, Investment Properties and Risk Management (continued)
‘a) Fair Value of Financial Instruments and Investment Properties (continued)
As at 31 December 2024 Level 1 Level 2 Level 3
Quoted prices in active markets for Significant other Significant unobservable Total
identical assets and liabilities observable inputs inputs(1)
€'000 €'000 €'000 €'000
Recurring Measurements – Assets
Investment properties — — 1,228,238 1,228,238
Assets held for sale — — 3,957 3,957
Derivative financial — 2,770 — 2,770
instruments
— 2,770 1,232,195 1,234,965
Recurring Measurements – Liability
Derivative financial — (1,557) — (1,557)
instruments(2)(3)
Total — 1,213 1,232,195 1,233,408
As at 31 December 2023 Level 1 Level 2 Level 3
Quoted prices in active markets for Significant other Significant unobservable Total
identical assets and liabilities observable inputs inputs(1)
€'000 €'000 €'000 €'000
Recurring Measurements – Assets
Investment properties — — 1,274,360 1,274,360
Derivative financial — 2,879 — 2,879
instruments
— 2,879 1,274,360 1,277,239
Recurring Measurements – Liability
Derivative financial — (3,667) — (3,667)
instruments(2)(3)
Total — (788) 1,274,360 1,273,572
(1) See note 5 for detailed information on the valuation methodologies and fair value reconciliation.
(2) The valuation of the interest rate swap instrument is determined using widely accepted valuation techniques
including discounted cash flow analysis on the expected cash flows of the derivatives. The fair value is determined
using the market-standard methodology of netting the discounted future fixed cash payments and the discounted variable
cash receipts of the derivatives. The variable cash receipts are based on an expectation of future interest rates
(forward curves) derived from observable market interest rates. If the total mark-to-market value is positive, I-RES
will include a current value adjustment to reflect the credit risk of the counterparty and if the total mark-to-market
value is negative, I-RES will include a current value adjustment to reflect I-RES' own credit risk in the fair value
measurement of the interest rate swap agreements.
(3) The cross-currency swaps are valued by constructing the cash flows of each side and then discounting them back to
the present using appropriate discount factors, including consideration of credit risk, in those currencies. The cash
flows of the more liquid quoted currency pair will be discounted using standard discount factors, while the cash flows
of the less liquid currency pair will be discounted using cross-currency basis-adjusted discount factors. Following
discounting, the spot rate will be used to convert the present value amount of the non-valuation currency into the
valuation currency.
‘19. Financial Instruments, Investment Properties and Risk Management (continued)
b. Risk Management
The main risks arising from the Group’s financial instruments are market risk, interest rate risk, liquidity risk and
credit risk. The Group’s approach to managing these risks is summarised as follows:
Market risk
Market risk is the risk that the fair value or cash flows of a financial instrument will fluctuate due to changes in
market prices. Market risk reflects interest rate risk, currency risk and other price risks.
The Group’s financial assets currently comprise short-term bank deposits, trade receivables, deposits on acquisition
and derivatives.
Short-term bank deposits are held to meet the cash flow needs of the Group. These are denominated in Euro. Therefore,
exposure to market risk in relation to these is limited to interest rate risk.
The Group also has private placement notes that are denoted in USD. The Group’s risk management strategy is to
mitigate foreign exchange variability to the extent that it is practicable and cost effective to do so. The Group
utilises cross currency swaps to hedge the foreign exchange risk associated with the Group’s existing, fixed
foreign-currency denominated borrowings. The use of cross-currency interest rate swaps is consistent with the Group’s
risk management strategy to effectively eliminate variability in the Group’s functional currency equivalent cash flows
on a portion of its borrowings due to variability in the USD-EUR exchange rate. The hedges protect the Group against
adverse variability in foreign exchange rates and the effective portion is recognised in equity in the hedging
reserve, with the ineffective portion being recognised through profit or loss within financing costs.
Derivatives designated as hedges against foreign exchange risks are accounted for as cash flow hedges. Hedges are
measured for effectiveness at each accounting date and the accounting treatment of changes in fair value revised
accordingly. Specifically, the Company is hedging (1) the foreign exchange risk on the USD interest payments and (2)
the foreign exchange risk on the USD principal repayment of the USD borrowings at maturity. This hedging relationship
qualifies for foreign currency cash flow hedge accounting.
On 12 February 2020, I-RES entered into cross-currency swaps to (i) exchange the USD loan of USD $75 million into
€68.9 million effective 11 March 2020 and (ii) convert the fixed interest rate on the USD loan to a fixed Euro
interest rate, maturing on 10 March 2027 and 10 March 2030.
At the inception of the hedging relationship the Company has identified the following potential sources of hedge
ineffectiveness:
1. Movements in the Company’s and hedging counterparty’s credit spread that would result in movements in fair value
of the hedging instrument that would not be reflected in the movements in the value of the hedged transactions.
2. The possibility of changes to the critical terms (e.g. reset dates, index mismatches, payment dates) of the hedged
transaction due to a refinancing or debt renegotiation such that they no longer match those of the hedging
instrument. The Company would reflect such mismatch when modelling the hypothetical derivative and this could be a
potential source of hedge ineffectiveness.
Whilst sources of ineffectiveness do exist in the hedging relationship, the Company expects changes in value of both
the hedging instrument and the hedged transaction to offset and systematically move in opposite directions given that
the critical terms of the hedging instrument and the hedged transactions are closely aligned at inception as described
above. Therefore, the Company has qualitatively concluded that there is an economic relationship between the hedging
instrument and the hedged transaction in accordance with IFRS 9.
‘19. Financial Instruments, Investment Properties and Risk Management (continued)
’b) Risk management (continued)
Cash flow hedges
At 31 December 2024, the Group held the following instruments to hedge exposures to changes in foreign currency and
interest rates:
31 December
As at 31 December 2024 31 December 2027 31 December 2030
2026
Cross Currency Swaps
Net exposure (€’000) 68,852 68,852 22,951 —
Average fixed interest rate 2.00% 2.00% 2.25% —
Interest Rate Swaps
Net exposure (€’000) 8,595 — — —
Average fixed interest rate 2.50% — — —
The amounts at the reporting date relating to items designated as hedged items were as follows:
Change in value used for calculating Cashflow hedge reserve
As at 31 December 2024 hedge ineffectiveness
(€’000)
(€’000)
Cross currency swaps (4,095) 1,171
Interest rate swaps (1,730) 1,763
The amounts relating to items designated as hedging instruments and hedge ineffectiveness were as follows:
As at 31 December 2024 For the year ended 31 December 2024
Changes in Amount
Carrying amount the value of Hedge Line items in Statement reclassed Line items in
hedging ineffectiveness of profit or loss that from profit or loss
instrument recognised in includes hedge hedging affected by
Nominal recognised Statement of ineffectiveness reserve to reclassification
amount Assets Liability in OCI profit or loss profit or
loss
(€’000) (€’000) (€’000) (€’000) (€’000) (€’000)
Cross (Loss)/Gain on
Currency 68,852 2,767 — (4,095) (104) derivative financial 5,592 Financing costs
Swaps instruments
Interest (Loss)/Gain on
Rate Swaps 275,000 3 (1,557) (1,730) — derivative financial 2,913 Financing costs
instruments
As at 31 December 2023 For the year ended 31 December 2023
Changes in Amount
Carrying amount the value of Hedge Line items in statement reclassed Line items in
hedging ineffectiveness of profit or loss that from profit or loss
instrument recognised in includes hedge hedging affected by
Nominal recognised Statement of ineffectiveness reserve to reclassification
amount Assets Liability in OCI profit or loss profit or
loss
(€’000) (€’000) (€’000) (€’000) (€’000) (€’000)
Cross (Loss)/Gain on
Currency 68,852 969 (1,594) 3,035 86 derivative financial (1,154) Financing costs
Swaps instruments
Interest (Loss)/Gain on
Rate Swaps 275,000 1,910 (2,073) 3,125 — derivative financial 1,661 Financing costs
instruments
‘19. Financial Instruments, Investment Properties and Risk Management (continued)
’b) Risk management (continued)
Master netting or similar agreements
The Group enters into derivative transactions under International Swaps and Derivatives Association (ISDA) master
netting agreements. In general, under these agreements the amounts owed by each counterparty on a single day in
respect of all transactions outstanding in the same currency are aggregated into a single net amount that is payable
by one party to the other. In certain circumstances, all outstanding transactions under the agreement are terminated,
the termination value is assessed and only a single net amount is payable in settlement of all transactions. The ISDA
agreements do not meet the criteria for offsetting in the statement of financial position. This is because the Group
does not have any currently legally enforceable right to offset recognised amounts, because the right to offset is
enforceable only on the occurrence of future events.
The following table sets out the carrying amounts of recognised financial instruments that are subject to the above
agreements.
Gross amounts of financial instruments in the Related financial instruments Net amount
statement of financial position that are not offset
As at 31 December 2024 Note (€’000) (€’000) (€’000)
Financial assets
Derivative financial 18 2,770 — 2,770
instruments
Financial liabilities
Derivative financial 18 (1,557) — (1,557)
instruments
Managing interest rate benchmark reform and associated risks
The Group does not have any exposures to IBORs on its financial instruments due to IBOR reform as fixed to fixed rates
are used. IBOR reform does not impact the Group’s risk management and hedge accounting. The Group has EURIBOR on its
RCF, which is not impacted by the interest rate benchmark reform.
Interest Rate Risk
With regard to the cost of borrowing I-RES has used and may continue to use hedging where considered appropriate, to
mitigate interest rate risk.
As at 31 December 2024, I-RES’ RCF was drawn for €355.9 million. The interest on the RCF is paid at a rate of 1.75%
per annum plus the one-month or three-month EURIBOR rate (at the option of I-RES) or at a floor of zero if EURIBOR is
negative. As previously noted, on 14 December 2022, I-RES entered into interest rate swaps in respect of its RCF,
aggregating to €275 million until maturity of the facility, converting this portion of the facility into a fixed
interest rate of 2.5% plus margin of 1.75%. As of the year end, approximately 85% of the Company's drawn debt is now
fixed against interest rate volatility. The Company’s private placement debt has a fixed rate of 1.92%. For the year
ended 31 December 2024, a 100-basis point change in 1 month Euribor interest rates across the period would have had
the following effect:
As at 31 December 2024 Change in interest rates Increase/(decrease) in net income
Basis Points €'000
EURIBOR rate debt(1) +100 (968)
EURIBOR rate debt(1) -100 968
(1) Based on the fixed margin of 1.75% plus the 1-month EURIBOR during year ended 31 December 2024 and a hedged
interest rate of 2.50% for the period interest rate swaps in place.
‘19. Financial Instruments, Investment Properties and Risk Management (continued)
’b) Risk management (continued)
As at 31 December 2023 Change in interest rates Increase (decrease) in net income
Basis Points €'000
EURIBOR rate debt(1) +100 (1,597)
EURIBOR rate debt(1) -100 1,597
(1) Based on the fixed margin of 1.75% plus the 1-month EURIBOR rate during year ended 31 December 2023 and a hedged
interest rate of 2.50% for the quantum and period of interest rate swaps in place.
Liquidity risk
Liquidity risk is the risk that the Group may encounter difficulties in accessing capital markets and refinancing its
financial obligations as they come due.
The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to the Group’s reputation. The Group monitors the level of expected cash inflows on trade and
other receivables, together with expected cash outflows on trade and other payables and capital commitments.
The following tables show the Group’s contractual undiscounted maturities for its financial liabilities:
1 to 2 2 to 5
As at 31 December 2024 Total 6 months or less(1) 6 to 12 months(1) More than 5 years(1)
years(1) years(1)
€'000 €'000 €'000 €'000 €'000 €'000
Non-derivative financial
liabilities
Loan drawn down 355,870 — — 355,870 — —
Bank indebtedness interest (2) 17,544 7,571 6,661 3,312 — —
Private placement debt(3) 202,415 — — — 48,277 154,138
Private placement debt interest 23,972 2,488 2,488 4,976 10,778 3,242
Lease liability 11,990 401 401 803 2,408 7,977
Other liabilities 9,936 9,936 — — — —
Security deposits 7,037 7,037 — — — —
628,764 27,433 9,550 364,961 61,463 165,357
Derivative financial liabilities
Foreign currency swap:
Outflow (4,987) (687) (687) (1,374) (1,980) (259)
Inflow(3) 8,968 1,268 1,268 2,536 3,458 438
3,981 581 581 1,162 1,478 179
Interest rate swap:
Outflow(4) (8,595) (3,438) (3,438) (1,719) — —
Inflow 7,541 3,444 2,741 1,356 — —
(1,054) 6 (697) (363) — —
(1) Based on carrying value at maturity dates.
(2) Based on current in-place interest rate for the remaining term to maturity.
(3) Based on forward foreign exchange rates as at 31 December 2024.
(4) Based on 1-month EURIBOR forward curve as at 31 December 2024.
‘19. Financial Instruments, Investment Properties and Risk Management (continued)
’b) Risk management (continued)
1 to 2 2 to 5 More than 5
As at 31 December 2023 Total 6 months or less(1) 6 to 12 months(1) years(1)
years(1) years(1)
€'000 €'000 €'000 €'000 €'000 €'000
Non-derivative financial
liabilities
Loan drawn down 373,020 — — — 373,020 —
Bank indebtedness interest (2) 38,673 9,953 8,400 13,683 6,637 —
Private placement debt(3) 197,892 — — — 45,261 152,631
Private placement debt interest 28,233 2,409 2,409 4,818 12,120 6,477
Lease liability 10,042 314 314 628 1,883 6,903
Other liabilities 11,532 11,532 — — — —
Security deposits 7,202 7,202 — — — —
666,594 31,410 11,123 19,129 438,921 166,011
Derivative financial liabilities
Foreign currency swap:
Outflow (6,357) (687) (683) (1,374) (2,837) (776)
Inflow(3) 11,567 1,189 1,189 2,378 5,578 1,233
5,210 502 506 1,004 2,741 457
Interest rate swap:
Outflow(4) (15,470) (3,438) (3,438) (6,875) (1,719) —
Inflow 15,236 4,931 3,786 5,275 1,244 —
(234) 1,493 348 (1,600) (475) —
(1) Based on carrying value at maturity dates.
(2) Based on current in-place interest rate for the remaining term to maturity.
(3) Based on forward foreign exchange rates as at 31 December 2023.
(4) Based on 1-month EURIBOR forward curve as at 31 December 2023.
The carrying value of bank indebtedness and trade and other payables (other liabilities) approximates their fair
value.
Credit risk
Credit risk is the risk that: (i) counterparties to contractual financial obligations will default; or (ii) the
possibility that the Group’s tenants may experience financial difficulty and be unable to meet their rental
obligations.
The Group monitors its risk exposure regarding obligations with counterparties through the regular assessment of
counterparties’ credit positions.
The Group mitigates the risk of credit loss with respect to tenants by evaluating the creditworthiness of new tenants
and obtaining security deposits wherever permitted by legislation.
The Group monitors its collection experience on a monthly basis and ensures that a stringent policy is adopted to
provide for all past due amounts. All residential accounts receivable balances exceeding 30 days are written off to
bad debt expense and recognised in the consolidated statement of profit or loss and other comprehensive income.
Subsequent recoveries of amounts previously written off are credited in the consolidated statement of profit or loss
and other comprehensive income. The Group’s allowance for expected credit loss amounted to a charge of €145,000 for
the year ended 31 December 2024 and is recorded as part of property operating costs in the consolidated statement of
profit or loss and other comprehensive income (31 December 2023: gain of €90,000).
Cash and cash equivalents are held with major Irish and European institutions which have credit ratings between A- and
A+. The Company deposits cash with a number of individual institutions to avoid concentration of risk with any one
counterparty. The Group has also engaged the services of a depository to ensure the security of cash assets.
Risk of counterparty default arising on derivative financial instruments is controlled by dealing with high-quality
institutions and by a policy limiting the amount of credit exposure to any one bank or institution. Derivative
financial instrument counter parties have credit ratings in the range of A- to A+.
‘19. Financial Instruments, Investment Properties and Risk Management (continued)
’b) Risk management (continued)
Capital management
The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern in order to
provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to
reduce the cost of capital.
In order to maintain or adjust the capital structure, I-RES may issue new shares or consider the sale of assets to
reduce debt. I-RES, through the Irish REIT Regime, is restricted in its use of capital to making investments in real
estate property in Ireland. I-RES intends to continue to make distributions if its results of operations and cash
flows permit in the future.
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and
to sustain future development of the business. At 31 December 2024, capital consists of equity and debt and Group Net
LTV was 44.4% (2023: 44.3%). I-RES seeks to use gearing to enhance shareholder returns over the long term. The level
of gearing is monitored carefully by the Board.
The Board monitors the return on capital as well as the level of dividends paid to ordinary shareholders. Subject to
distributable reserves, it is the policy of I-RES to distribute at least 85% of the Property Income of its Property
Rental Business for each accounting period as required under the REIT legislation.
20. Taxation
I-RES elected for REIT status on 31 March 2014. As a result, from that date the Group is exempt from paying Irish
corporation tax on the profits and gains it makes from qualifying rental businesses in Ireland provided it meets
certain conditions.
Instead, dividends paid to shareholders in respect of the Property Rental Business are treated for Irish tax purposes
as income in the hands of shareholders. Corporation tax is still payable in the normal way in respect of income and
gains from any residual business (generally including any property trading business) not included in the Property
Rental Business. I-RES is also liable to pay other taxes such as VAT, stamp duty, local property tax and payroll taxes
in the normal way.
Within the Irish REIT Regime, for corporation tax purposes the Property Rental Business is treated as a separate
business from the residual business. A loss incurred by the Property Rental Business cannot be offset against profits
of the residual business.
An Irish REIT is required, subject to having sufficient distributable reserves, to distribute to its shareholders (by
way of dividend), on or before the filing date for its tax return for the accounting period in question, at least 85%
of the Property Income of the Property Rental Business arising in each accounting period. Failure to meet this
requirement would result in a tax charge calculated by reference to the extent of the shortfall in the dividend paid.
A dividend paid by an Irish REIT from its Property Rental Business is referred to as a property income distribution.
Any normal dividend paid from the residual business by the Irish REIT is referred to as a non-property income
distribution dividend.
The Directors confirm that the Group has remained in compliance with the Irish REIT Regime up to and including the
date of this Report.
Income tax expense recognised in the consolidated statement of profit or loss and other comprehensive income
31 December 2024 31 December 2023
For the year ended
€'000 €'000
Current Taxation
Irish corporation tax expense — 59
Income tax withheld 8 8
Irish capital gains tax expense — 1,456
Adjustment in respect of prior years (31) —
Total Current Taxation (23) 1,523
’20. Taxation (continued)
Reconciliation of the effective tax rate
31 December 2024 31 December 2023
For the year ended
€'000 €'000
Loss before taxation (6,699) (114,491)
At the standard rate of corporation tax in Ireland of 12.5% — —
Adjusted for:
Tax exempt property rental loss 5,992 115,344
Current year losses for which no deferred tax is recognised 721 —
Adjustment in respect of prior years — (377)
Other items (14) (7)
Adjusted profit — 469
Total income tax expense at 12.5% — 59
The main driver of taxation for I-RES in the prior period related to Capital Gains Tax (“CGT”). This arose on the
profit on disposal of the Rockbrook site. CGT was payable on this as the site constituted a disposal of an asset of
the residual business as opposed to the property rental business of the Group.
There is an unrecognised deferred tax asset of €19,800 at 31 December 2024 (31 December 2023: €nil), which is not
related to the property rental business.
21. Dividends
Under the Irish REIT Regime, subject to having sufficient distributable reserves, I-RES is required to distribute to
shareholders at least 85% of the Property Income of its Property Rental Business for each accounting period.
On 8 August 2024, the Directors resolved to pay an additional dividend of €10.0 million for the six months ended 30
June 2024. The dividend of 1.88 cents per share was paid on 13 September 2024 to shareholders on record as at 23
August 2024.
On 23 February 2024, the Directors resolved to pay an additional dividend of €10.6 million for the year ended 31
December 2023. The dividend of 2.00 cents per share was paid on 28 March 2024 to shareholders on record as at 8 March
2024.
On 2 August 2023, the Directors resolved to pay an additional dividend of €12.9 million for the six months ended 30
June 2023. The dividend of 2.45 cents per share was paid on 1 September 2023 to shareholders on record as at 11 August
2023.
On 23 February 2023, the Directors resolved to pay an additional dividend of €14.9 million for the year ended 31
December 2022. The dividend of 2.81 cents per share was paid on 3 April 2023 to shareholders on record as at 10 March
2023.
Distributable reserves in accordance with the Irish REIT Regime were calculated as follows:
For the year ended 31 December 2024 31 December 2023
€'000 €'000
Loss for the year (6,676) (116,014)
Adjusted for:
(Gain)/loss on disposal of investment properties (1,622) 418
Taxation on disposal of properties (38) 1,476
Unrealised loss on net movement in fair value of investment properties 33,745 141,791
Property Income of the Property Rental Business 25,409 27,671
Add back/(deduct):
Share-based compensation expense 305 153
Unrealised change in fair value of derivatives 104 (86)
Distributable Reserves 25,818 27,738
22. Supplemental Cash Flow Information
Breakdown of operating income items related to financing and investing activities
For the year ended 31 December 2024 31 December 2023
€'000 €'000
Financing costs as per the consolidated statement of profit or loss and other 23,389 26,695
comprehensive income
Interest expense accrual (45) (248)
Lease interest 296 212
Less: amortisation of financing fees (1,356) (2,079)
Interest Paid 22,284 24,580
Interest expense
For the year ended 31 December 2024 31 December 2023
€'000 €'000
Financing costs on Credit Facility 23,389 26,695
Amortisation of other financing costs (1,356) (2,079)
Lease interest 296 212
Interest Expense 22,329 24,828
Changes in operating assets and liabilities
For the year ended 31 December 2024 31 December 2023
€'000 €'000
Prepayments 1,865 (458)
Trade receivables (429) 460
Accounts payable and other liabilities (77) 1,868
Security deposits (165) (772)
Changes in operating assets and liabilities 1,194 1,098
’22. Supplemental Cash Flow Information (continued)
Changes in liabilities due to financing cash flows
Changes from Financing Cash Flows Non-cash changes
1 Revolving Revolving Amortisation Change in 31
Liabilities January Credit Credit Lease Financing of other Foreign Lease fair value December
2024 Facility Facility payments fees financing exchange Reassess-ment of hedging 2024
drawdown repayment costs instruments
Bank 373,020 12,800 (29,950) — — — — — — 355,870
indebtedness
Deferred
loan costs, (1,665) — — — (20) 1,012 — — — (673)
net
Private
placement 197,892 — — — — — 4,523 — — 202,415
debt
Deferred
loan costs, (1,767) — — — (1) 344 — — — (1,424)
net
Derivative
financial 3,667 — — — — — — — (2,110) 1,557
instruments
Lease 8,268 — — (471) — — — 2,201 — 9,998
liability
Total
liabilities
from 579,415 12,800 (29,950) (471) (21) 1,356 4,523 2,201 (2,110) 567,743
financing
activities
Changes from Financing Cash Flows Non-cash changes
1 Revolving Revolving Amortisation Change in 31
Liabilities January Credit Credit Lease Financing of other Foreign Lease fair value December
2023 Facility Facility payments fees financing exchange Reassess-ment of hedging 2023
drawdown repayment costs instruments
Bank 457,020 10,700 (94,700) — — — — — — 373,020
indebtedness
Deferred
loan costs, (3,282) — — — (185) 1,802 — — — (1,665)
net
Private
placement 200,107 — — — — — (2,215) — — 197,892
debt
Deferred
loan costs, (1,870) — — — (174) 277 — — — (1,767)
net
Derivative
financial 9 — — — — — — — 3,658 3,667
instruments
Lease 8,684 — — (416) — — — — — 8,268
liability
Total
liabilities
from 660,668 10,700 (94,700) (416) (359) 2,079 (2,215) — 3,658 579,415
financing
activities
23. Related Party Transactions
Transactions with Key Management Personnel
For the purposes of the disclosure requirements of IAS 24, the term ‘‘key management personnel’’ is defined as those
persons having authority for planning, directing and controlling the activities of the Company. I-RES has determined
that the key management personnel comprise the Board of Directors. See note 28 for further details on remuneration.
Owners’ management companies not consolidated
As a result of the acquisition by the Group of apartments or commercial space in certain residential rental
properties, the Group holds voting rights in the relevant owners’ management companies (“OMCs”) associated with those
developments. Where the Group holds the majority of those voting rights, this entitles it, inter alia, to control the
composition of such OMCs’ boards of directors. However, as each of those OMCs is incorporated as a company limited by
guarantee for the purpose of owning the common areas in residential or mixed-use developments, they are not intended
to be traded for gains. I-RES does not consider these OMCs to be material for consolidation as the total assets of the
OMCs is less than 1% of the Group’s total assets.
The total service fees billed by OMCs for the year ended 31 December 2024 were €9.5 million (2023 €9.9 million). As at
31 December 2024, €0.1 million was payable and €1.0 million was prepaid by the Group to the OMCs. As at 31 December
2023, €0.1 million was payable and €1.0 million was prepaid by I-RES to the OMCs.
24. Contingencies
At Beacon South Quarter, in addition to the capital expenditure work that has already been completed, water ingress
works were identified in 2016 and I-RES is working with the Beacon South Quarter owners’ management company to resolve
these matters. The amount of potential costs relating to these structural remediation works cannot be currently
measured with sufficient reliability.
25. Commitments
As at 31 December 2024 there are no material commitments.
26. Loss per Share
(Loss)/Earnings per share amounts are calculated by dividing profit for the reporting period attributable to ordinary
shareholders of I-RES by the weighted average number of ordinary shares outstanding during the reporting period.
For the year ended 31 December 2024 31 December 2023
Loss attributable to shareholders of I-RES (€'000) (6,676) (116,014)
Basic weighted average number of shares 529,578,946 529,578,946
Diluted weighted average number of shares(1)(2) 529,578,946 529,578,946
Basic Loss per share (cents) (1.3) (21.9)
Diluted Loss per share (cents) (1.3) (21.9)
(1) Diluted weighted average number of shares includes the additional shares resulting from dilution of the long-term
incentive plan options as of the reporting period date.
(2) At 31 December 2024, 4,596,499 options (31 December 2023: 4,596,499) were excluded from the diluted weighted
average number of ordinary shares because their effect would have been anti-dilutive.
EPRA issued Best Practices Recommendations most recently in October 2019, which gives guidelines for performance
matters.
EPRA Earnings represents the earnings from the core operational activities (recurring items for I-RES). It is intended
to provide an indicator of the underlying performance of the property portfolio and therefore excludes all components
not relevant to the underlying and recurring performance of the portfolio, including any revaluation results and
results from the sale of properties. EPRA Earnings per share amounts are calculated by dividing EPRA Earnings for the
reporting period attributable to shareholders of I-RES by the weighted average number of ordinary shares outstanding
during the reporting period.
’26. Loss per Share (continued)
EPRA Earnings per Share
For the year ended 31 December 2024 31 December 2023
Loss for the year (€'000) (6,676) (116,014)
Adjustments to calculate EPRA Earnings exclude:
Changes in fair value on investment properties (€'000) 33,745 141,791
(Gain)/loss on disposal of investment property (1,622) 418
Changes in fair value of derivative financial instruments (€'000) 104 (86)
Taxation on disposal of properties (€'000) (38) 1,476
EPRA Earnings (€'000) 25,513 27,585
Non-recurring costs (€'000) 3,411 939
Adjusted EPRA Earnings before non-recurring costs (€'000) 28,924 28,524
Basic weighted average number of shares 529,578,946 529,578,946
Diluted weighted average number of shares 529,578,946 529,578,946
EPRA Earnings per share (cents) 4.8 5.2
Adjusted EPRA EPS before non-recurring costs per share (cents) 5.5 5.4
EPRA Diluted Earnings per share (cents) 4.8 5.2
27. Net Asset Value per Share
In October 2019, EPRA introduced three EPRA NAV metrics to replace the then existing EPRA NAV calculation that was
previously being presented. The three EPRA NAV metrics are EPRA Net Reinstatement Value (“EPRA NRV’’), EPRA Net
Tangible Asset (“EPRA NTA”) and EPRA Net Disposal Value (“EPRA NDV”). Each EPRA NAV metric serves a different purpose.
The EPRA NRV measure is to highlight the value of net assets on a long term basis. EPRA NTA assumes entities buy and
sell assets, thereby crystallising certain levels of deferred tax liability. Lastly, EPRA NDV provides the reader with
a scenario where deferred tax, financial instruments and certain other adjustments are calculated to the full extent
of their liabilities. The table below presents the transition between the Group’s shareholders’ equity derived from
the consolidated financial statements and the various EPRA NAV.
EPRA NAV per Share
31 December 2024
As at EPRA NRV EPRA NTA(1) EPRA NDV(2)
Net assets (€'000) 668,150 668,150 668,150
Adjustments to calculate EPRA net assets exclude:
Fair value of derivative financial instruments (€'000) 1,554 1,554 —
Fair value adjustment for fixed interest rate debt (€'000) — — 22,470
Real estate transfer cost (€'000)(3) 67,575 — —
EPRA net assets (€'000) 737,279 669,704 690,620
Number of shares outstanding 529,578,946 529,578,946 529,578,946
Diluted number of shares outstanding 529,578,946 529,578,946 529,578,946
Basic Net Asset Value per share (cents) 126.2 126.2 126.2
EPRA Net Asset Value per share (cents) 139.2 126.5 130.4
‘27. Net Asset Value per Share (continued)
31 December 2023
As at EPRA NRV EPRA NTA(1) EPRA NDV(2)
Net assets (€'000) 697,331 697,331 697,331
Adjustments to calculate EPRA net assets exclude:
Fair value of derivative financial instruments (€'000) 163 163 —
Fair value adjustment for fixed interest rate debt (€’000) — — 30,058
Real estate transfer cost (€'000)(3) 65,976 — —
EPRA net assets (€'000) 763,470 697,494 727,389
Number of shares outstanding 529,578,946 529,578,946 529,578,946
Diluted number of shares outstanding 529,578,946 529,578,946 529,578,946
Basic Net Asset Value per share (cents) 131.7 131.7 131.7
EPRA Net Asset Value per share (cents) 144.2 131.7 137.4
(1) Following changes to the Irish REIT legislation introduced in October 2019, if a REIT disposes of an asset of its
property rental business and does not (i) distribute the gross disposal proceeds to shareholders by way of dividend;
(ii) reinvest them into other assets of its property rental business (whether by acquisition or capital expenditure)
within a three-year window (being one year before the sale and two years after it); or (iii) use them to repay debt
specifically used to acquire, enhance or develop the property sold, then the REIT will be liable to tax at a rate of
25% on 85% of the gross disposal proceeds, subject to having sufficient distributable reserves. For the purposes of
EPRA NTA, the Group has assumed any such sales proceeds are reinvested within the required three-year window.
(2) Deferred tax is assumed as per the IFRS statement of financial position. To the extent that an orderly sale of
the Group’s assets was undertaken over a period of several years, during which time (i) the Group remained a REIT;
(ii) no new assets were acquired or sales proceeds reinvested; (iii) any developments completed were held for three
years from completion; and (iv) those assets were sold at 31 December 2024 valuations, the sales proceeds would need
to be distributed to shareholders by way of dividend within the required time frame or else a tax liability amounting
to up to 25% of distributable reserves plus current unrealised revaluation gains could arise for the Group.
(3) This is the purchaser costs amount as provided in the valuation certificate. Purchasers’ costs consist of items
such as stamp duty on legal transfer and other purchase fees that may be incurred and which are deducted from the
gross value in arriving at the fair value of investment for IFRS purposes. Purchasers’ costs are in general estimated
at 9.96% for commercial, 4.46% for residential apartment units and 12.46% for houses and duplexes.
28. Employee Costs and Auditor Remuneration
For the year ended 31 December 2024 31 December 2023
€'000 €'000
Employee costs
Salaries, benefits and bonus 9,201 8,562
Social insurance costs 923 877
Pension costs 224 197
Share-based payments 305 153
Total 10,653 9,789
The average number of employees in the period was 98 (2023: 94). The total number of employees at the reporting period
end was 98 (31 December 2023: 95).
28. Employee Costs and Auditor Remuneration (continued)
For the year ended 31 December 2024 31 December 2023
€'000 €'000
Auditor remuneration (including expenses)(1)
Audit of Group accounts 220 210
Other assurance services(2) 15 15
Non-assurance services(3) 6 8
Total 241 233
(1) Included in the auditor remuneration for the Group is an amount of €171,000 (31 December 2023: €167,000) that
relates to the audit of the Company’s financial statements.
(2) Non-audit remuneration relates to the review of the interim financial statements.
(3) Non-assurance services relate to Accountants’ report under Property Services Regulatory Authority (PSRA)
regulations.
29. Holding Company Details
The name of the holding company of the Group is Irish Residential Properties REIT plc. The legal form of the Company
is a public limited company. The place of registration of the holding company is Dublin, Ireland and its registration
number is 529737. The address of the registered office is South Dock House, Hanover Quay, Dublin 2, Ireland.
30. Subsequent Events
At the date of authorisation of the consolidated financial statements, there are no adjusting or non-adjusting events
after the reporting period.
Glossary of Terms
The following explanations are not intended as technical definitions, but rather are intended to assist the reader in
understanding terms used in this report.
“Adjusted Earnings (excluding fair value movements)”
Adjusted EPRA Earnings plus Gain/(Loss) on Disposal of investment property
“Adjusted General and Administrative Expenses”
General and administrative expenses adjusted to remove non-recurring costs;
“Annualised Passing Rent”
Defined as the actual monthly residential and commercial rents under contract with residents as at the stated date,
multiplied by 12, to annualise the monthly rent;
“ Assets Held For Sale (AHFS)”
Investment properties being held for sale which are expected to be disposed on within the next 12 months.
“Average Monthly Rent (AMR)”
Actual monthly residential rents, net of vacancies, as at the stated date, divided by the total number of apartments
owned in the property;
“Basic Earnings per share (Basic EPS)”
Calculated by dividing the profit/(loss) for the reporting period attributable to ordinary shareholders of the Company
in accordance with IFRS by the weighted average number of ordinary shares outstanding during the reporting period;
“Companies Act, 2014”
The Irish Companies Act, 2014;
“Diluted weighted average number of shares”
Includes the additional shares resulting from dilution of the long-term incentive plan options as of the reporting
period date;
“Adjusted EBITDA”
Represents earnings before lease interest, financing costs, depreciation of property, plant and equipment, gain or
loss on disposal of investment property, net movement in fair value of investment properties and gain or loss on
derivative financial instruments and non-recurring costs to show the underlying operating performance of the Group;
“Adjusted EBITDA Margin”
Calculated as Adjusted EBITDA over the revenue from investment properties;
“EPRA”
The European Public Real Estate Association;
“EPRA Diluted EPS”
Calculated by dividing EPRA Earnings for the reporting period attributable to shareholders of the Company by the
diluted weighted average number of ordinary shares outstanding during the reporting period. EPRA Earnings measures the
level of income arising from operational activities. It is intended to provide an indicator of the underlying income
performance generated from leasing and management of the property portfolio, while taking into account dilutive
effects and therefore excludes all components not relevant to the underlying net income performance of the portfolio,
such as unrealised changes in valuation and any gains or losses on disposals of properties;
“EPRA Earnings”
EPRA Earnings is the profit after tax excluding revaluations and gains and losses on disposals and associated taxation
(if any);
“Adjusted EPRA Earnings”
Represents EPRA Earnings adjusted for non-recurring costs to show the underlying EPRA Earnings of the Group;
“EPRA EPS”
Calculated by dividing EPRA Earnings for the reporting period attributable to shareholders of the Company by the
weighted average number of ordinary shares outstanding during the reporting period. EPRA Earnings measures the level
of income arising from operational activities. It is intended to provide an indicator of the underlying income
performance generated from leasing and management of the property portfolio and therefore excludes all components not
relevant to the underlying net income performance of the portfolio, such as unrealised changes in valuation and any
gains or losses on disposals of properties;
“Adjusted EPRA EPS”
EPRA EPS calculated using Adjusted EPRA Earnings;
“EPRA NAV”
EPRA introduced three EPRA NAV metrics to replace the existing EPRA NAV calculation that was previously being
presented. The three EPRA NAV metrics are EPRA Net Reinstatement Value (“EPRA NRV’), EPRA Net Tangible Asset (“EPRA
NTA”) and EPRA Net Disposal Value (“EPRA NDV”). Each EPRA NAV metric serves a different purpose. The EPRA NRV measure
is to highlight the value of net assets on a long-term basis. EPRA NTA assumes entities buy and sell assets, thereby
crystallising certain levels of deferred tax liability. Any gains arising from the sale of a property are expected
either to be reinvested for growth or 85% of the net proceeds are distributed to the shareholders to maintain the REIT
status. Lastly, EPRA NDV provides the reader with a scenario where deferred tax, financial instruments and certain
other adjustments are calculated to the full extent of their liabilities.
“EPRA NAV per share”
Calculated by dividing each of the EPRA NAV metric by the diluted number of ordinary shares outstanding as at the end
of the reporting period;
“Equivalent Yields (formerly referred as Capitalisation Rate)”
The rate of return on a property investment based on current and projected future income streams that such property
investment will generate. This is derived by the external valuers and is used to estimate the term and reversionary
yields;
“Group Total Gearing or Net Loan to Value (Net LTV)”
Calculated by dividing the Group’s aggregate borrowings (net of cash) by the fair value of the Group’s property
portfolio, including assets held for sale;
“Loan to Value (LTV)”
Calculated by dividing the Group’s aggregate borrowings by the fair value of the Group’s property portfolio;
“Gross Yield”
Calculated as the Annualised Passing Rent as at the stated date, divided by the fair value of the investment
properties, including units classified as assets held for sale and excluding fair value of development land as at the
reporting date;
“Irish REIT Regime”
Means the provisions of the Irish laws and regulations establishing and governing real estate investment trusts, in
particular, but without limitation, section 705A of the Taxes Consolidation Act, 1997 (as inserted by section 41(c) of
the Finance Act, 2013), as amended from time to time;
“LEED”
LEED stands for Leadership in Energy and Environmental Design. It is a rating system to certify sustainable buildings
and neighbourhoods;
“Like for Like”
Like-for-like amounts are presented as they measure operating performance adjusted to remove the impact of properties
that were only owned for part of the relevant period or comparative period;
“Market Capitalisation”
Calculated as the closing share price multiplied by the number of shares outstanding;
“Net Asset Value” or “NAV”
Calculated as the value of the Group’s or Company’s assets less the value of its liabilities measured in accordance
with IFRS;
“Net Asset Value per share”
Calculated by dividing NAV by the basic number of ordinary shares outstanding as at the end of the reporting period;
“Net Rental Income (NRI)”
Measured as property revenue less property operating expenses;
“Net Rental Income Margin”
Calculated as the NRI over the revenue from investment properties;
“Occupancy Rate”
Calculated as the total number of apartments occupied divided by the total number of apartments owned as at the
reporting date available to rent;
“Property Income”
As defined in section 705A of the Taxes Consolidation Act, 1997. It means, in relation to a company or group, the
Property Profits of the Company or Group, as the case may be, calculated using accounting principles, as: (a) reduced
by the Property Net Gains of the Company or Group, as the case may be, where Property Net Gains arise, or (b)
increased by the Property Net Losses of the Company or Group, as the case may be, where Property Net Losses arise;
“Property Profits”
As defined in section 705A of the Taxes Consolidation Act, 1997;
“Property Net Gains”
As defined in section 705A of the Taxes Consolidation Act, 1997;
“Property Net Losses”
As defined in section 705A of the Taxes Consolidation Act, 1997;
“Property Rental Business”
As defined in section 705A of the Taxes Consolidation Act, 1997;
“Sq. ft.”
Square feet;
“Sq. m.”
Square metres;
“Stabilised NRI”
Measured as property revenue less property operating expenses adjusted for market-based assumptions such as long-term
vacancy rates, management fees, repairs and maintenance;
“Total Property Value”
Total investment property plus any property classified as assets held for sale
“Vacancy Costs”
Defined as the value of the rent on unoccupied residential apartments and commercial units for the specified period.
Forward-Looking Statements
I-RES Disclaimer
This Report includes statements that are, or may be deemed to be, forward-looking statements. These forward-looking
statements can be identified by the use of forward-looking terminology, including the terms “may”, “will”, “should”,
“expect”, “anticipate”, “project”, “estimate”, “intend”, “continue”, “maintain”, “forecast”, “potential”, “target” or
“believe”, or, in each case, their negative or other comparable terminology, or by discussions of strategy, plans,
objectives, trends, goals, projections, future events or intentions. Such forward-looking statements are based on the
beliefs of management as well as assumptions made and information currently available to the Company. Forward-looking
statements speak only as of the date of this report and save as required by law, the Irish Takeover Rules, the
Euronext Dublin Listing Rules and/or by the rules of any other securities regulatory authority, the Company expressly
disclaims any obligation or undertaking to release any update of, or revisions to, any forward-looking statements or
risk factors in this report, including any changes in its expectations, new information, or any changes in events,
conditions or circumstances on which these forward-looking statements are based. Due to various risks and
uncertainties, actual events or results or actual performance of the Company may differ materially from those
reflected or contemplated in such forward-looking statements. No representation or warranty is made as to the
achievement or reasonableness of and no reliance should be placed on, such forward-looking statements. There is no
guarantee that the Company will generate a particular rate of return.
Shareholder Information
Head Office
South Dock House
Hanover Quay
Dublin 2, Ireland
Tel: +353 (0)1 557 0974
Website: www.iresreit.ie
Directors
Hugh Scott-Barrett (Chair)
Eddie Byrne (CEO)
Amy Freedman
Denise Turner
Joan Garahy
Phillip Burns
Richard Nesbitt
Stefanie Frensch
Tom Kavanagh
Investor Information
Analysts, shareholders and others seeking
financial data should visit I-RES’ website at
https://investorrelations.iresreit.ie or contact:
Chief Executive Officer
Eddie Byrne
Tel: +353 (0)1 557 0974
E-mail: investors@iresreit.ie
Company Secretary
Anna-Marie Curry
Tel: +353 (0) 1 557 0974
E-mail: companysecretary@iresreit.ie
Registrar And Transfer Agent
Computershare Investor Services (Ireland) Limited
3100 Lake Drive
Citywest Business Campus
Dublin 24, Ireland
Tel: +353 (0)1 447 5566
Depositary
BNP Paribas Securities Services, Dublin Branch
Trinity Point
10-11 Leinster Street South
Dublin 2, Ireland
Auditor
KPMG
1 Stokes Place
St. Stephen’s Green
Dublin 2, Ireland
Legal Counsel
McCann FitzGerald
Riverside One
Sir John Rogerson’s Quay
Dublin 2, D02 X576 Ireland
Stock Exchange Listing
Shares of I-RES are listed on Euronext Dublin under
the trading symbol “IRES”.
══════════════════════════════════════════════════════════════════════════════════════════════════════════════════════
11 1 Central Bank of Ireland, Quarterly Bulletin Q4 2024
12 2 CSO
13 3 Government Reports
14 4 Savills Research
15 5 CBRE Ireland Research
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Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
══════════════════════════════════════════════════════════════════════════════════════════════════════════════════════
ISIN: IE00BJ34P519
Category Code: FR
TIDM: IRES
LEI Code: 635400EOPACLULRENY18
OAM Categories: 1.1. Annual financial and audit reports
Sequence No.: 376669
EQS News ID: 2088877
End of Announcement EQS News Service
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