DJ Trading Update
Irish Residential Properties REIT plc (IRES)
Trading Update
15-May-2025 / 07:00 GMT/BST
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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 EUR500 million and an increased Accordion Facility of EUR200
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 EUR275 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 EUR5 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 EUR5 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: 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
www.iresreit.ie.
This note applies if and to the extent that there are forward-looking statements in this Announcement.
This Announcement may contain forward-looking statements, which are subject to risks and uncertainties because they
relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar
expressions concerning matters that are not historical facts. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company
or the industry in which it operates, to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. The forward-looking statements referred to in this paragraph
speak only as at the date of this Announcement. Except as required by law or by any appropriate regulatory authority,
the Company will not undertake any obligation to release publicly any revision or updates to these forward-looking
statements to reflect future events, circumstances, unanticipated events, new information or otherwise.
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Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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ISIN: IE00BJ34P519
Category Code: TST
TIDM: IRES
LEI Code: 635400EOPACLULRENY18
Sequence No.: 388371
EQS News ID: 2137914
End of Announcement EQS News Service
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(END) Dow Jones Newswires
May 15, 2025 02:01 ET (06:01 GMT)
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