REG-Irish Residential Properties REIT plc Trading Update

Irish Residential Properties REITAnnouncement

15/05/2025 07:02

============

Irish Residential Properties REIT plc (IRES)
Trading Update

15-May-2025 / 07:00 GMT/BST

══════════════════════════════════════════════════════════════════════════════════

                                         

 

                      Irish Residential Properties REIT plc

                                         

                             2025 AGM Trading Update

                                         

 Continued strong operational performance in Q1; good progress against strategic
                                   initiatives

                                         

15 May 2025,  Dublin |  Irish Residential Properties  REIT plc  (“the Company”  or
“I-RES”) provides an update on  the Company’s trading for  the three months to  31
March 2025 (the “first quarter” or “Q1”) ahead of its AGM today.

 

Operating Highlights

 

  • The portfolio continued to be effectively  fully occupied at 99.7% during  the
    quarter (31  December  2024: 99.4%),  underpinned  by exceptional  demand  for
    rental accommodation  in  Ireland  and  our  efficient  operating  model,  and
    reflecting the high quality of our modern portfolio of assets.

 

  • Following the  strong  performance  in  H2  2024,  Net  Rental  Income  margin
    continued to improve in Q1 2025 compared to H2 2024. We continue to  implement
    additional income generating and cost  reduction initiatives as identified  in
    the  Strategic  Review.  We  are  successfully  executing  initiatives   which
    capitalise  on  our  significant  and  previously  underutilised  real  estate
    footprint, such as car parking, and other services across the portfolio, which
    are reflected  in the  strong NRI  performance. The  Company continues  to  be
    supported by highly  recurring cashflows  and strong  rent collections,  which
    remain in excess of 99%, in line with 2024.

 

  • The Company remains in a strong financial position and successfully  completed
    a refinancing of its  main debt facilities during  the period. Reflecting  the
    impact of one-off refinancing costs and payment of the dividend in the period,
    LTV1 has increased to 45.4% at 31 March 2024 (44.4% at 31 December 2024), well
    below the  50%  limit set  by  the Company’s  debt  covenants and  Irish  REIT
    legislation.

 

Progress on Disposal Programme

 

  • Disposals  under  the  Strategic  Review  initiative  continued  their  strong
    momentum into 2025, following the completion of 66 unit disposals in 2024.  As
    previously announced at  31 December  2024, the Company  had 13  units in  the
    pipeline for disposal,  all of these  disposals have now  completed at  strong
    premia to book values, and  a further 12 are in  the pipeline for disposal  in
    the near term. We remain confident we  will complete the disposal of at  least
    50 units in 2025, at an average sales premium2 of between 15% and 20%,  having
    had a strong start to the year delivering premia in excess of this range.

 

Refinancing

 

  • On 18th March  2025 the Company  announced the successful  refinancing of  its
    existing Revolving Credit Facility (“RCF”). The new facilities comprise an RCF
    of €500 million and an increased Accordion Facility of €200 million which adds
    an additional element  of flexibility  to the Company's  debt facilities.  The
    facilities have a five-year term expiring in March 2030 with the option of two
    one-year extensions. The  facilities are priced  at Euribor plus  a margin  of
    2.05%. Hedging facilities in the amount of €275 million have been put in place
    for five years, maintaining the Company’s overall level of fixed rate debt  at
    85%. Following this refinancing, the current weighted average cost of interest
    across the Group’s facilities is approximately 3.8%, broadly in line with  the
    Group’s weighted average financing costs in 2024.

 

Capital Allocation

 

  • The  Board  remains  committed  to  maximising  value  for  shareholders   and
    addressing the discount  between the Company’s  current market  capitalisation
    and Net Asset  Value (NAV).  In line with  this objective,  proceeds from  the
    previously announced asset recycling programme have been deployed towards  the
    following initiatives over the quarter:

       ◦ Continuing to actively manage LTV within the Board’s target range, and
         subsequently;
       ◦ Executing a share buyback of €5 million, with approx. 5.1 million shares
         purchased at an average price per share of 97.3 cents.

 

 

Eddie Byrne, CEO of I-RES, commented:

 

“We are pleased to report strong trading  in the period and are encouraged by  the
positive momentum of the business. The execution of our recycling programme is  in
line with  our  expected  timeframe  and will  further  strengthen  our  financial
position. The successful completion of the refinancing in the period will  bolster
our position  in  the  market, delivering  additional  capital  and  significantly
increased flexibility, positioning us well to play a part in the delivery of  much
needed new rental accommodation. Consistent  with our capital allocation  strategy
and also recognising the  current discount between the  Company’s share price  and
its  Net  Asset  Value  per  share,  we  completed  a  share  buyback   programme,
successfully returning €5 million to shareholders. We will continue to concentrate
on value accretive capital  allocation strategies for so  long as the share  price
trades at a steep discount to Net Asset Value. Furthermore, while we will continue
to consider all opportunities to enhance shareholder value, we are confident about
the  long-term  market  opportunity  which  is  underpinned  by  our  high-quality
portfolio and market leading operating platform.”

 

1 LTV net of cash based on portfolio valuation at 31 December 2024

2 Based on 31 December 2024 book values

END

For further information please contact:

Investor Relations:

Eddie Byrne, Chief Executive
Officer                                                       Tel: +353 (1)
5570974

Stephen Mulcair, Investor
Relations                                                        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

 

About Irish Residential Properties REIT plc

Irish Residential Properties REIT plc (“I-RES”) is a 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  2 www.iresreit.ie.

This note applies if and to the extent that there are forward-looking statements
in this Announcement.

This Announcement may contain forward-looking statements, which are subject to
risks and uncertainties because they relate to expectations, beliefs, projections,
future plans and strategies, anticipated events or trends, and similar expressions
concerning matters that are not historical facts. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors, which may cause
the actual results, performance or achievements of the Company or the industry in
which it operates, to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statements. The
forward-looking statements referred to in this paragraph speak only as at the date
of this Announcement. Except as required by law or by any appropriate regulatory
authority, the Company will not undertake any obligation to release publicly any
revision or updates to these forward-looking statements to reflect future events,
circumstances, unanticipated events, new information or otherwise.

 

 

══════════════════════════════════════════════════════════════════════════════════

Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

══════════════════════════════════════════════════════════════════════════════════

   ISIN:          IE00BJ34P519
   Category Code: TST
   TIDM:          IRES
   LEI Code:      635400EOPACLULRENY18
   Sequence No.:  388371
   EQS News ID:   2137914


    
   End of Announcement EQS News Service

   ══════════════════════════════════════════════════════════════════════════

References

   Visible links
   1. mailto:investors@iresreit.ie
   2. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=b3d597ca672b6c29c41fc0ef19933149&application_id=2137914&site_id=reuters~~~787b94c3-8286-43cc-98b3-26b1dc52d810&application_name=news


============