DJ Results for the Year Ended 31 December 2025
Irish Residential Properties REIT plc (IRES)
Results for the Year Ended 31 December 2025
19-Feb-2026 / 07:00 GMT/BST
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19 February 2026
I-RES FY 2025 Results
Irish Residential Properties REIT plc
RESULTS FOR THE YEAR ENDED 31 DECEMBER 2025
Continued Strong Operational Delivery Drives Earnings Growth and Value Creation
Key Highlights
Irish Residential Properties REIT plc ("I-RES" or the "Company"), the leading provider of rental homes in Ireland,
today issues its preliminary results for the twelve-month period from 1 January 2025 to 31 December 2025.
-- Adjusted Earnings (excluding fair value movements) growth of 7.4% to EUR32.8 million in 2025 (2024: EUR30.5 million),
reflecting the ongoing success of the asset recycling programme in generating sales premia significantly ahead of
book values.
-- Adjusted EPRA Earnings growth of 1.5% for the year. 2.3% growth in adjusted EPRA EPS to 5.6 cent, notwithstanding
the sale of approximately 3% of units in the portfolio over the last 18 months.
-- Net Rental Income ("NRI") margin increase of 120 bps in 2025 with a margin of 78.0% (2024: 76.8%) due to our
continued focus on operational efficiency and successful implementation of cost management and recovery
initiatives.
-- IFRS NAV per share of 131.7 cent, grew by 4.4% (2024: 126.2 cent).
-- Net LTV reduction to 43.6% (2024: 44.4%).
-- Successful debt refinancing in H1, new facilities in place for 5 years with the option of two one-year extensions.
Successfully converted to sustainability linked loan in H2.
-- Total Accounting Return ("TAR") of 8.1% in 2025 (2024: Negative 1.0%).
-- Return of surplus capital to shareholders by way of an accretive share buyback of EUR5 million in H1.
-- New rental regulation which will take effect from 1st March 2026, along with other measures implemented by
government have strengthened the outlook for the market and for the business.
-- The business has continued to execute on its asset recycling programme, disposing of 41 units in the period for a
gain of EUR3.4 million versus book value. Proceeds will be directed towards enhancing shareholder value through our
capital allocation framework. This framework includes exploring opportunities to grow our portfolio through the
acquisition of new, high quality assets to replace the units we have sold. Given the positive market dynamics, the
Company's pipeline of opportunities is strong.
Eddie Byrne, I-RES' Chief Executive Officer, said:
"I'm pleased to report that 2025 marked a major step forward in I-RES' operational and financial performance,
delivering strong margin expansion and meaningful earnings growth against the backdrop of our sales programme. We
advanced our strategic priorities at pace, leveraging our operational platform to drive significant efficiency gains
and achieving asset disposals at more than a 25% premium to book value. Throughout the year, we remained disciplined in
our capital allocation decisions, executing on a share buyback programme, with our focus firmly on creating shareholder
value and managing LTV. We are now actively pursuing re-investment opportunities to enhance the portfolio by investing
in higher quality and higher yielding assets. With an improving regulatory backdrop and market conditions, we enter
2026 with strong momentum and clear confidence in our ability to build on this progress. Importantly, we continue to
play a vital role in addressing Ireland's housing needs through the provision of high-quality, in-demand rental
accommodation, supported by a market-leading service offering for our residents."
Financial and Operational Highlights
-- Achieved incremental earnings growth of 1.5% for the year with adjusted EPRA earnings of EUR29.4 million (2024: EUR28.9
million) and 2.3% growth in adjusted EPRA EPS to 5.6 cent (2024: 5.5 cent). This growth in earnings was achieved
despite the sale of approximately 3% of units in the portfolio over the past 18 months, through our asset recycling
programme. Adjusted Earnings (excluding fair value movements) grew by 7.4% to EUR32.8 million in 2025 (2024: EUR30.5
million) and reflects the success of our ongoing asset recycling programme in generating sales premia significantly
ahead of book values.
-- As a result of the disposals and a low Harmonised Index of Consumer Prices ("HICP") rate in H1, limiting our
ability to raise rents, revenue increased modestly by 0.2% in 2025 to EUR85.5 million (2024: EUR85.3 million).
-- Through continued focus on portfolio optimisation, Average Monthly Rent ("AMR") increased by 2.1% to EUR1,852 (2024:
EUR1,814) aided by our asset recycling, retrofit programme and focused management of renewals.
-- The portfolio continues to be effectively fully occupied at 99.5% (31 December 2024: 99.4%) which reflects both our
highly effective operating platform and the continued strong underlying demand for high quality rental properties
in Dublin.
-- Achieved a significant NRI margin increase of 120 bps year on year, with a 2025 margin of 78.0% (2024: 76.8%). NRI
for the period of EUR66.7 million increased by 1.9% versus 2024. This strong performance reflects the intense focus
on costs and successful implementation of cost management and recovery initiatives over the last year building on
the momentum achieved in H2 2024. We will continue to focus on driving efficiencies in order to sustain the
increases achieved.
-- EPRA Earnings of EUR29.4 million grew by 15.1% vs the prior year of EUR25.5 million due to the elimination of
non-recurring costs in 2025 and improved NRI margin.
-- Profit before tax of EUR49.7 million versus a loss of EUR6.7 million in 2024 driven by the fair value movement of our
assets underpinned by the improved operational performance of the assets and stabilised valuation yields in 2025.
-- Successful refinancing of the Revolving Credit Facility ("RCF") in H1 ensures financial position remains robust,
with the new facilities in place for 5 years with two one-year extension options. The current weighted average cost
of interest across the Group's facilities for 2025 is approximately 3.71%, broadly in line with the Group's
weighted average financing costs in 2024 (3.79%). In line with our ongoing ESG commitment, we successfully
converted the RCF into a Sustainability Linked Loan ("SLL") in November 2025 which ties our financing costs to
Sustainability Performance Indicators.
-- The Company completed the disposal of 41 units in 2025 as part of the previously announced asset recycling
programme of 315 units, achieving sales premia in excess of 25% above book value. This takes the total number of
units disposed of to date under the programme to 82 marking continued good progress against the overall target.
Disposals completed during the year generated total gross proceeds of EUR16.1 million and a EUR3.4 million gain versus
book value. As at 31 December 2025, the Company had a further 21 units held for sale which we expect to complete in
the coming months.
Balance Sheet and Capital Allocation
-- As at 31 December 2025, I-RES' portfolio had a total value of EUR1,247 million (31 December 2024: EUR1,232 million)
including assets held for sale. This represents a 1.2% increase in the year. Strong organic growth in the
performance of the assets has delivered valuation increases offset by the disposal of 41 units as part of our
ongoing asset recycling programme. Yields remained broadly flat in the period with EPRA Net Initial Yield of 5.2%
at 31 December 2025 (31 December 2024: 5.1%). We have seen a continuation of yield stability in 2025 with valuers'
prime residential yields remaining at 4.75%.
-- We continue to reinvest in our portfolio of assets, to ensure we maintain our exceptional levels of occupancy and
tenant demand, whilst also future proofing our assets. We expect the change in rental regulation, now approved by
government to have a positive impact on valuations over time. The Group's portfolio is currently estimated to be
20% under-rented versus market rates. This embeds significant long-term revenue upside in the business without the
requirement for a significant increase in investment in our assets given our ongoing capex programme.
-- Net LTV at 31 December 2025 stood at 43.6%, reduced from 44.4% at 31 December 2024. Our leverage level remains well
below the 50% maximum allowed by the Irish REIT regime and the Group's debt financial leverage ratio covenant. The
decrease can be attributed to the increased property valuations and ongoing asset recycling programme offset by the
successful completion of the share buyback programme and the upfront transaction costs associated with the
refinancing.
-- The Company executed a share buyback of EUR5 million in 2025, with approximately 5.1 million shares purchased at an
average price per share of 97.3 cents.
-- Achieved a Total Accounting Return of 8.1% versus 2024 of negative 1.0%. The primary drivers for this performance
are the strong recurring dividend paid, the organic growth in our asset portfolio and the gain on disposals.
-- Proceeds from the asset recycling programme will 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 value
through our capital allocation framework.
-- The Board intends to declare a dividend of 2.53 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. This brings the full year dividend to 4.89 cents and represents a 19.9% increase on the 2024
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dividend of 4.08 cents per share.
Outlook
-- The Company will continue to focus on delivering against its strategic priorities to maximise shareholder value by
growing revenue and managing costs, with a strong focus on optimising the operational performance of the business.
Backed by a highly efficient and scalable internalised platform, set against the backdrop of positive regulatory
change and improving market conditions, the Company is exceptionally well positioned to take advantage of tailwinds
to drive earnings growth and enhanced shareholder value.
-- The Company remains committed to a disciplined capital allocation strategy, prioritising robust balance sheet
management, delivering consistent shareholder returns through its ordinary dividend, whilst pursuing long-term
value creation by re-investing sales proceeds in strategically located assets that enhance shareholder value or
continuing to return capital to shareholders.
-- In line with this capital allocation strategy and against a backdrop of improving valuations, the successful asset
recycling programme has given I-RES the flexibility to pursue, in the first instance, recycling the sales proceeds
into portfolio enhancing opportunities whilst continuing to manage LTV.
-- The Company has welcomed the Government's proactive approach towards reviving housing construction. The new rental
regulation measures taking effect on 1 March 2026 will have a positive impact on both the market and the Company.
We have already begun to see an increase in market activity and an increase in development activity. I-RES sees
itself playing an important role in the delivery of new high-quality rental accommodation in Ireland in the coming
years.
Financial Highlights
For the year ended 31 December 2025 31 December 2024 %
Revenue from Investment Properties (EUR millions) 85.5 85.3 0.2%
Net Rental Income (EUR millions) 66.7 65.5 1.9%
Net Rental Income Margin % 78.0% 76.8%
Adjusted EBITDA (EUR millions) (1) 54.6 53.2 2.5%
Financing costs (EUR millions) (24.3) (23.4) (4.0%)
Adjusted EPRA Earnings (EUR millions)(1) 29.4 28.9 1.5%
Deduct: Non-recurring costs (EUR millions) - (3.4)
EPRA Earnings (EUR millions)(1) 29.4 25.5 15.1%
Adjusted EPRA Earnings (EUR millions)(1) 29.4 28.9 1.5%
Add: Gain on disposal of investment property (EUR millions) 3.4 1.6
Adjusted Earnings (excluding fair value movements) (1) 32.8 30.5 7.4%
Increase/(Decrease) in fair value revaluation of investment
properties
17.0 (33.7)
(EUR millions)
Profit/(Loss) before tax (EUR millions) 49.7 (6.7)
Basic EPS (cents) 9.5 (1.3)
EPRA EPS (cents) (1) 5.6 4.8 16.0%
Adjusted EPRA EPS (cents)(1) 5.6 5.5 2.3%
Interim Dividend per share (cents) 2.36 1.88
Proposed Dividend per share (cents) 2.53 2.20
Proposed Full Year Dividend (cents) 4.89 4.08 19.9%
Portfolio Performance
Total Number of Residential Units 3,627 3,668 (1.1%)
Overall Portfolio Occupancy Rate(1) 99.5% 99.4%
Overall Portfolio Average Monthly Rent (EUR)(1) 1,852 1,814 2.1%
As at 31 December 2025 31 December 2024 %
Assets and Funding
Total Property Value (EUR millions) 1,246.9 1,232.2 1.2%
Net Asset Value (EUR millions) 690.5 668.2 3.3%
IFRS Basic NAV per share (cents) 131.7 126.2 4.4%
Group Net LTV 43.6% 44.4%
Gross Yield at Fair Value(1) 7.0% 7.0%
EPRA Net Initial Yield(1) 5.2% 5.1%
Total Accounting Return 8.1% (1.0%)
Other
Market Capitalisation (EUR millions) 493.0 481.9
Total Number of Shares Outstanding 524,442,218 529,578,946
Weighted Average Number of Shares - Basic 525,604,518 529,578,946
(1) For definitions, method of calculation and other details, refer to the Business Review and Glossary.
For further information please contact:
Investor Relations:
Eddie Byrne, Chief Executive Officer 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
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 (Local): +353 1 691 7842 United-States (Local): +1 646 233 4753 Ireland (Toll-Free): +353 1800 816 490 United-States (Toll-Free): +1 855 979 6654 United Kingdom (Local): +44 20 3936 2999 Canada (Local): +1 613 699 6539 United Kingdom (Toll-Free): +44 808 189 0158 Canada (Toll-Free): +1 833 294 2546
Global Dial-In Numbers
Participant access Code: 527787
To listen to the investor conference call using the Live Webcast Facility, please register at: Webcast Link
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: https://www.iresreit.ie/investors.
About Irish Residential Properties REIT plc
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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.
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
Internalised Operating Platform Drives Strong Operational Performance
The Company delivered a strong financial and operational performance in 2025, making progress against strategic objectives and delivering improvements across numerous key performance indicators. Our high-quality portfolio of modern and sustainable properties remained effectively fully occupied at 31 December 2025 at 99.5% (2024: 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.
Organic rental increases in Ireland under the existing rental regulations are limited to the lower of 2% or the Harmonised Index of Consumer Prices ("HICP). Rent increases were impacted by the low rate of HICP inflation in the first half of 2025 and as a result of this, combined with the disposal of 41 units completed as part of our ongoing asset recycling plan, reported revenue increased by 0.2% in the period to EUR85.5 million. During the year, 14% of the portfolio units turned over, in line with last year despite the fact that a number of units where leases ended were not turned over as they were disposed of through the asset recycling programme.
Net Rental Income ("NRI") increased by 1.9% in 2025 despite the sale of c. 3% of the portfolio in the last 18 months as a result of NRI margin growth of 120bps in 2025 to 78.0% (2024: 76.8%). As highlighted by incremental margin improvements, we are making strong progress implementing income generating and cost management and recovery initiatives to improve the profitability of our real estate portfolio. This includes a sustained focus on cash collections, savings achieved from management of Owner's Management Companies ("OMCs") and associated costs, contract negotiations and certain cost recoveries on new leases. We continue to review operations for cost efficiencies and revenue opportunities.
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. Despite inflationary pressures in some of these cost items, we have managed to achieve a moderate decrease of 1.8% in Adjusted G&A expenses to EUR11.7m (2024: EUR11.9m) through focused cost control and partly due to additional costs related to CEO and Chair recruitment costs expensed in 2024.
In March 2025 the Company successfully refinanced its existing Revolving Credit Facility ("RCF"). The new facilities comprise an RCF of EUR500 million and an 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. Hedging instruments in the amount of EUR275 million have been put in place until maturity, maintaining the Company's overall level of fixed rate debt at c. 85% of drawn facilities. Following this refinancing, the current weighted average cost of interest across the Group's facilities is 3.71% in 2025, broadly in line with the Group's weighted average financing costs in 2024 of 3.79%. Financing costs in 2025 were slightly ahead of 2024 at EUR24.3 million due to costs incurred for the acceleration of the deferred loan costs associated with the refinancing of the RCF at c. EUR0.6 million and the termination of the interest rate swaps associated with the previous RCF.
In November 2025 the Company converted its EUR500 million RCF, signed in March 2025, into a Sustainability Linked Loan ("SLL") that aligns with the Loan Market Association's March 2025 principles for sustainable finance. The SLL ties financing costs to independently verified Sustainability Performance Indicators. This structure supports I-RES' sustainability strategy. The RCF was arranged with four lenders: The Governor and the Company of the Bank of Ireland, Allied Irish Banks P.L.C. (Sustainability Coordinator), ABN AMRO Bank N.V. and Barclays Bank Ireland PLC.
The Company delivered growth of 1.5% in Adjusted EPRA earnings at EUR29.4 million (2024: EUR28.9 million) and 2.3% in Adjusted EPRA EPS (2024: 1.4%) driven by the increase in NRI margin and the share buyback programme executed during the period.
In 2025, the Company has completed the disposal of 41 units in total as part of the overall disposal target of 315 units, with an additional 21 units held for sale at year end which we expect to close in the coming months. The sales are achieving premia in excess of 25%, and gross proceeds in 2025 were EUR16.1 million. This takes the total number of units disposed under the programme to 82. In addition, a bulk sale of 25 units was completed in H2 2024 taking total gross proceeds for the sale of 107 units to EUR34.9 million across 2024-2025. As a result of these disposals in 2025 Adjusted Earnings (excluding fair value movements) increased 7.4% from EUR30.5 million to EUR32.8 million.
The Company continues to actively dispose of the identified units and given the strong sales premia achieved in 2025, expect that the disposal premia in 2026 will continue at a c. 25% premium.
I-RES recognises its investment properties at fair value at each reporting period, with any unrealised gain or loss on re-measurement recognised in the profit or loss account. In the period, the fair value gain recorded on investment properties was EUR17.0 million (2024: loss of EUR33.7 million), reflecting the stabilisation of yields across the wider Irish residential market and positive organic growth. We are encouraged by the continued yield stabilisation witnessed in the market for the last twelve months after two years of expansion. Our Gross Yield was 7.0% at period end, well in excess of our weighted average cost of interest of 3.71% whilst EPRA Net Initial Yield remained broadly flat at 5.2% (2024: 5.1%).
The Irish Government has approved a suite of new rental regulations, which include the ability to reset the rent of a particular unit when a tenant vacates and a new lease is put in place from 1 March 2026. As a result of this change and the expected increase in the income profile of our properties as we capture the 20% embedded reversion, we expect there to be a positive impact on valuations, assuming no market yields movement over time. The new legislation is expected to be passed by the Oireachtas shortly, in advance of 1 March 2026.
Yields
As at 31 December 2025 31 December 2024 Gross Yield at Fair Value 7.0% 7.0% EPRA Net Initial Yield 5.2% 5.1%
Our average monthly rent increased to EUR1,852 from EUR1,814 at 31 December 2024 representing an increase of 2.1% reflecting our continued focus on asset management and selective disposal of underperforming and lower quality assets. Despite this our portfolio is currently estimated to be 20% below market rent. Occupancy of 99.5% (FY 2024: 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.
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AMR and Occupancy
Properties owned prior to
Total Portfolio 31 December 2024
(Like for Like properties)
2025 2024 2025 2024
As at 31 AMR Occ. AMR Occ. AMR Occ. AMR Occ. AMR change %
December
AMR change %
% % % %
Residential EUR1,852 99.5% EUR1,814 99.4% 2.1% EUR1,852 99.5% EUR1,814 99.4% 2.1%
We delivered a Total Accounting Return for 2025 of 8.1% versus negative 1.0% in 2024. A key driver for the improved return includes the ongoing strong dividend paid by the Company, which has increased in 2025 due to the elimination of the non-recurring costs in 2024 and NRI Margin improvement. In addition, our EPRA Net Tangible Assets ("NTA") per share growth of 5.7 cent has improved due to the valuation increase of our investment property driven by organic rental growth and cost management and the profits achieved from the asset recycling programme. The impact of the share buyback programme has also aided the increase in EPRA NTA per share.
Total Accounting Return
31 December 2025 31 December 2024 Opening EPRA NTA per share (cents) 126.5 131.7 Closing EPRA NTA per share (cents) 132.2 126.5 Increase/(Decrease) in EPRA NTA per share (cents) 5.7 (5.2) Dividends paid per share in the year (cents) 4.6 3.9 Total Return (cents) 10.3 (1.3) EPRA NTA per share at the beginning of the year (cents) 126.5 131.7 Total Accounting Return 8.1% (1.0%)
Operational and Financial Results
Net Rental Income and Profit for the Twelve Months Ended
31 December 2025 31 December 2024
EUR'000 EUR'000
Operating Revenue
Revenue from investment properties 85,465 85,273
Operating Expenses
Property taxes (1,127) (1,110)
Property operating costs (17,651) (18,708)
(18,778) (19,818)
Net Rental Income ("NRI") 66,687 65,455
NRI margin 78.0% 76.8%
Adjusted general and administrative expenses (11,717) (11,935)
Share-based compensation expense (415) (305)
Adjusted EBITDA 54,555 53,215
Non-recurring costs - (3,411)
Depreciation of property, plant and equipment (683) (591)
Lease interest (228) (296)
Financing costs (24,335) (23,389)
Taxation 55 (15)
EPRA Earnings 29,364 25,513
Addback: Non-recurring costs - 3,411
Adjusted EPRA Earnings 29,364 28,924
Gain on disposal of investment property 3,433 1,622
Adjusted Earnings (excluding fair value movements) 32,797 30,546
Non-recurring costs - (3,411)
Net movement in fair value of investment properties 16,991 (33,745)
Loss on derivative financial instruments (36) (104)
Taxation - 38
Profit/(Loss) for the Year 49,752 (6,676)
Balance Sheet
Our total investment property value at 31 December 2025 was EUR1,246.9 million. This represents a 1.2% increase compared to 31 December 2024 driven by the revaluation of investment properties and offset by the disposal of 41 units as part of our ongoing asset recycling programme. Yields and valuations remained broadly flat in the period with EPRA Net Initial Yield at 5.2% as at 31 December 2025, remaining flat versus 30 June 2025. 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 and enabling us to capture the embedded reversion in the portfolio once the rental regulations are revised from 1 March 2026.
I-RES seeks to use leverage 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 ratios are maintained at a sustainable level. Our debt facilities are made up of our recently refinanced EUR500 million RCF and c. EUR200 million (Euro Equivalent) of Private Placement Notes.
The successful refinancing of the RCF in 2025 has extended the facilities for 5 years to 2030 with two one-year extension options, strengthening the Company's capital structure. The Company has no debt maturities before 2027, and laddering is out to 2032 thereafter. As outlined, we have converted the RCF into an SLL which will tie the margin charged on the facility to the performance against sustainability KPI's through a ratchet of 5bps upwards and downwards from a base margin rate of 2.0%.
Net LTV at 31 December 2025 stood at 43.6%, down from 44.4% at 31 December 2024. The decrease in LTV can be attributed to the ongoing, successful asset recycling programme and strong premia being achieved on these sales along with an increase in the valuation of the properties driven by organic rental growth and strong cost optimisation initiatives. Our leverage level remains well below the 50% maximum allowed by the Irish REIT regime and the Group's debt financial leverage ratio covenant. I-RES is focused on managing LTV through the cycle between the 40%-45% range.
The Private Placement Notes were issued in March 2020 and are made up of EUR130 million and USD75 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 over 85% fully fixed. The Group has a weighted average drawn debt maturity of 4.1 years and no debt maturities before 2027. The weighted average cost of interest is 3.71% for 2025 (2024: 3.79%). The remaining undrawn committed facilities are c. EUR148 million.
The IFRS NAV per share is 131.7 cent, up 4.4% from 126.2 cent at 31 December 2024 aided by the increased asset valuations, the impact of the share buyback programme and the ongoing successful asset recycling programme.
As at 31 December 2025 31 December 2024
EUR'000 EUR'000
RCF Borrowings 352,443 355,870
Euro denominated Private Placement notes 130,000 130,000
USD denominated Private Placement notes(1) 63,890 72,415
Weighted Average Cost of Interest(2) 3.71% 3.79%
(1) The principal amount of USD notes is USD75 million. The movement during the period relates to foreign exchange movements. I-RES has entered into cross currency swaps to fix this at EUR68.8 million.
(2) Includes commitment fee charged on the undrawn portion of the RCF facility.
In line with our capital allocation strategy and recognising the discount between the Company's share price and its Net Asset Value per share the Company utilised excess capital generated through premia achieved on disposals to execute a share buyback of EUR5 million in H1 2025, with approx. 5.1 million shares purchased at an average price per share of 97.3 cents.
Capital Allocation
The Board remains committed to maximising value for shareholders and addressing the discount between the Company's current market capitalisation and Net Asset Value.
In line with this objective, proceeds from the ongoing asset recycling programme are expected to be deployed towards:
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- Continuing to actively manage LTV within the Board's target range of between 40% and 45%, and subsequently:
- Enhancing returns through re-investing in our own portfolio and also exploring opportunities to acquire
strategically located/attractive assets and/or
- An efficient return of capital to shareholders where it is considered the best use of capital.
In line with the above allocation framework, proceeds realised from the asset recycling programme have enabled the Company to successfully reduce Net LTV and execute a share buyback programme in 2025, which contributed to the improvement in EPS.
Looking forward to 2026, and in light of the continually improving investment environment and increase in attractive opportunities coming to the market, we will in the first instance look to replace the units we have disposed of over the past 18 months whilst continuing to manage our LTV.
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 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 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 2.53 cents per share for the six months ended 31 December 2025, 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. This brings the full year dividend to 4.89 cents and represents a 19.9% increase on the 2024 dividend of 4.08 cents per share.
Public Policy
I-RES is supportive of the Government's numerous efforts to implement policy measures which support an environment of increased investment in the development of new housing supply. The changes made to rental regulations along with amendments to the sustainable design standards, direct and indirect tax amendments in the 2026 Budget and the 'Delivering Homes, Building Communities 2025 - 2030' plan, all provide positive steps to addressing the viability challenge for the delivery of new apartment developments. We were pleased to see the Government approve the 'Residential Tenancies (Miscellaneous Provisions) Bill 2026' and expect it to be passed by the Oireachtas shortly in advance of 1 March 2026. We believe this will not only provide for stronger tenant protections and greater certainty for renters, but creates an environment in which new apartment development can restart.
The new legislation will take time to translate into newly delivered stock, but the Company has already seen a significant increase in market activity in the sector, an increase in development activity, and importantly has resulted in a renewed interest from international capital sources in investing in the delivery of new homes and apartments. With a positive and balanced regulatory framework now in place the Company sees itself playing an important role in the delivery of new high-quality rental accommodation in Ireland in the coming years. The Company will in the first instance look to achieve this through recycling internally generated capital into portfolio enhancing acquisition opportunities.
I-RES will continue to be very disciplined in relation to its capital allocation priorities. The Company believes that under the new rent regulation, along with improving market dynamics, there is now a substantial opportunity for growth, which will enable the Company to deliver improved shareholder value creation over the medium to long term. All potential growth opportunities will be assessed against alternatives to maximise shareholder returns on an ongoing basis.
CFO Succession
As announced in January, CFO Brian Fagan has notified the Company of his intention to retire this summer. He will be succeeded by Mari Hurley who will join the Company, on a date to be confirmed in due course, initially as CFO designate before assuming the role of CFO on Brian's retirement. Ms. Hurley joins the Company from her current role as CFO of state broadcaster RTÉ. She has extensive experience as a CFO and business leader in Ireland and the UK, in publicly listed companies as well as in large private and semi state companies. In addition, she served as a non-executive Director on the Board of the National Asset Management Agency ("NAMA") for ten years from 2014 to 2024. Prior to her current role in RTE she worked as CFO for the AA (Ireland) for 3 years and for Premier Lotteries Ireland (operator of the Irish National Lottery) for 3 years. She also served as CFO of Hostelworld Group plc, a role she held for 11 years. Prior to that Ms Hurley served as CFO for the property advisory firm Sherry FitzGerald Group during its time as a listed company.
Outlook
We look ahead to 2026 with optimism. The Company expects to continue to realise efficiencies from its market-leading internally managed operating platform, supporting sustained earnings growth and further margin improvements. The Company will continue to execute on its strategic priorities and remain focused on crystalising strong premia on the sales programme.
Regulatory developments during the period have strengthened the medium-term outlook, with revised rental rules improving income growth outlook and supporting a more attractive investment environment. The Company believes these changes will not only benefit the business but also stimulate broader market liquidity and encourage much-needed new supply. The Company has already begun to see an increase in market activity and an increase in development activity. The Company sees itself playing an important role in the delivery of new high-quality rental accommodation in Ireland in the coming years with a new and balanced regulatory framework now in place.
The Company will continue to be disciplined on capital allocation, in the first instance ensuring prudent balance sheet and LTV management whilst ensuring shareholder returns through the ordinary dividend are maintained. Where appropriate capital raised through the asset recycling programme will be deployed into new assets, earnings enhancing investments in our existing portfolio or returned to shareholders by way of share buybacks, or special dividends where it is the most efficient and accretive option. The Company is exploring opportunities to re-invest the proceeds achieved to date and replace the units disposed as market conditions and liquidity are improving. We will continue to monitor accretive growth opportunities and assess this against our capital allocation strategy whilst ensuring our LTV is within our desired operating range.
With a highly efficient, scalable platform and an improving regulatory and investment market backdrop, I-RES enters 2026 well positioned to deliver growth and enhanced shareholder value.
On behalf of the Board
Hugh Scott-Barrett Eddie Byrne
Non-Executive Chairman Chief Executive Officer
19 February 2026
Sustainability
Ireland faces two interconnected and at times conflicting challenges: a housing crisis that has left many without secure, affordable homes and a climate crisis that demands urgent action to reduce emissions and build resilience. As the leading provider of rental homes in Ireland, I-RES recognises its responsibility to help address both. Housing is not only a social necessity but also a critical component of sustainable communities. By providing high-quality, energy-efficient homes and investing in low-carbon solutions, we aim to provide secure accommodation and social value while reducing environmental impact.
Collaboration with stakeholders will remain a cornerstone of our approach as we work together to address systemic challenges.
In 2025, the business continued to make progress on our sustainability ambitions through environmental action and social impact, achieving significant milestones.
Operating Responsibly
Disclosure & Data
We are committed to clear, consistent communication and disclosure, ensuring accountability and fostering trust across all stakeholder groups.
The year began with a focus on meeting Corporate Sustainability Reporting Directive ("CSRD") disclosure requirements, however given the progression of the Omnibus Proposals, it now appears likely that I-RES will remain out of scope for CSRD reporting. Nevertheless, the insights we garnered from carrying out the Double Materiality Assessment have been very valuable, informing our strategy going forward.
We maintained our European Public Real Estate Association ("EPRA") Sustainability Best Practices Recommendations ("sBPR") Gold Award for our latest sustainability reporting for the fifth consecutive year. Our GRESB score increased by a further four points maintaining a 3-star rating and we maintained our Carbon Disclosure Project("CDP") B rating (highest score for SMEs). We also improved our MSCI rating from BBB to A and our S&P Global Corporate Sustainability Rating has increased to 44 from 42.
ESG data capture and analysis processes were further streamlined and to ensure the robustness of our approach, our ESG data and approach is assured by a third-party assessor.We continued our engagement with the Commission for Regulation of Utilities ("CRU") smart-meter programme to improve energy data-collection capabilities.
Sustainability-Linked Financing
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We have made significant progress in establishing sustainability-linked financing mechanisms. Over the past year, we have aligned our sustainability performance indicators with credible, measurable targets that reflect our strategic priorities, particularly in areas such as carbon reduction, resource efficiency and community impact. A key milestone in this journey was the conversion in November 2025 of our EUR500 million RCF, signed in March 2025, into an SLL that aligns with the Loan Market Association's March 2025 principles for sustainable finance.
Risk Management
I-RES operates a strong integrated sustainability risk framework, supported by Board level oversight and alignment with ISO 14001 and ISO 31000. We have begun detailed site level climate risk reviews, informed by national flood risk data and will implement targeted mitigation measures where required.
In parallel, we enhanced our cybersecurity and data protection capabilities, updating our cyber programme to leading standards and expanding governance, training and 24/7 monitoring and threat detection.
Health and safety remain a core organisational priority, supported by a robust safety management framework, qualified staff, comprehensive training and strong governance to ensure the wellbeing of residents, employees, contractors and stakeholders.
Responsible Sourcing
I-RES continues to strengthen sustainable procurement by partnering with suppliers that share our ethical and environmental commitments. Through targeted engagement, training and our Responsible Sourcing Policy, we are supporting circular, lower impact product choices. Since launching our vendor engagement programme in 2022 we have achieved a 35% increase in Tier 1 vendors (from 15% to 50%) with sustainability policies in place and 25% are now reporting their carbon footprint since the programme began. We also work closely with OMCs to advance energy efficiency and waste reduction initiatives.
Protecting the Environment
We are fully committed to achieving Net Zero Carbon by 2050 and continue to measure and report on our organisational footprint in our annual Sustainability Report, as well as in our ESG ratings disclosures.
Climate Change
In 2025, we commenced the development of our Climate Transition Plan which will provide us with a long-term direction for decarbonisation, guiding us step by step over the next 25 years. This plan is not static; it will evolve as we balance ambition with practical realities, including budgets and investments. It is the foundation for a future where our portfolio delivers meaningful carbon reductions, firmly positioning I-RES on the pathway to net zero. It will form a critical component of our sustainability linked financing going forward, ensuring alignment between our environmental ambitions and financial strategy.
Environmental Management
Our environmental KPIs are fully aligned with our SLL framework. We are currently finalising our greenhouse gas ("GHG") emissions performance data, which will be disclosed in our Sustainability Report scheduled for publication in April 2026.
To date, we have proactively installed eight solar panels across seven properties, totalling 118 kWp, and enabled car sharing in seven properties. 100% of common areas across wholly owned assets are powered by renewable energy.
We are closely monitoring the EU's revised Energy Performance of Buildings Directive ("EPBD"), which aims to decarbonise the built environment by 2050, as Ireland prepares to transpose the directive into Irish Law in March 2026. Our efforts to meet the EPBD standards include retrofitting suitable low-energy-rated properties when they became vacant.
We have maintained zero waste to landfill for directly managed assets and our waste management programme is improving with new resources for residents.
Biodiversity initiatives across our portfolio continue to aid pollination and wildlife.
Building Communities
Residents
We are committed to delivering exceptional customer service and providing safe, secure, comfortable and high-quality homes, while fostering vibrant communities for our residents. In 2025, to strengthen engagement across our residential communities, we launched a dedicated resident facing brand, I-RES Living, connecting over 3,600 homes across Dublin through tailored communication channels.
Our annual Resident Survey continues to provide valuable insights. Our Net Promoter Score remains strong versus industry benchmarks, particularly among younger and newer residents. The 2025 survey showed two in three residents value environmental sustainability, with high interest in recycling, waste management, energy, water conservation and pollinator gardens. Survey results are analysed and used by the resident management teams to prepare individual improvement plans for each property to address key concerns highlighted in the survey, with actions implemented and monitored throughout the year.
Employees
Demonstrating our continued commitment to employee well-being and experience, we introduced further enhancements to our employee benefits in 2025, including expanded health insurance cover, improved leave allowances and enhanced pension benefits. We also introduced further learning and development opportunities, with employees completing a combined average of 42 training hours.
A social & Equality, Diversity and Inclusion ("EDI") committee was established focusing on promoting equality, diversity and inclusion to create a welcoming environment for everyone. The group delivered a programme of employee engagement events throughout the year.
In our most recent independent employee survey, participation reached 92%, with an overall satisfaction rate of 90%.
Community
As a provider of residential homes and services, our team is deeply connected to local communities. We continue to partner with educational NGOs, support local sports teams and our employees are very involved in charity events for those in need across Dublin. I-RES' employees helped raise funds for charities and together volunteered over 620+ hours engaging in community activities.
Looking Forward
We are committed to operating responsibly and to being a leading voice in shaping Ireland's sustainable property sector. Through collaboration, innovation and relentless focus on our net zero pathway, we aim to set a benchmark for responsible growth, sustainable properties and positive environmental and social impact.
We will further develop our Net Zero Carbon Transition Plan, advancing carbon-reduction initiatives across scope 1, 2 and 3, measuring our social-value impact and supporting our colleagues in their roles and in our community initiatives, fundraising, charitable giving and resident engagement.
Market Outlook
Macroeconomic Landscape
2025 has been a year characterised by shifting geoeconomic relationships causing heightened uncertainty. As a small, open economy with significant trading and investment relationships with the US and EU, Ireland is not exempt from the challenges caused by a changing geoeconomic and geopolitical landscape. Policy uncertainty, in particular related to significant shifts in US trade policy, has directly shaped headline economic activity in Ireland in 2025, with uncertainty spiking in April driven by US trade policy announcements.
However, the Irish economy continued to outperform. Employment remained exceptionally strong in 2025 with unemployment sitting at 5%1 in 2025. Economic activity was very strong in 2025 with GDP expected to have grown by 10.7% according to the EU commission outperforming all EU peers2, while Modified Domestic Demand ("MDD") is forecast to have grown by 3.9% in 20253.
Housing Critically Undersupplied; Positive Government Interventions Will Take Time To Affect Output
The Irish housing market continues to experience 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. Last year, the Government approved new national housing targets up to the year 2030. The Government aim to deliver 303,000 new homes in the period from 2025 to 2030, equating to an annual average of 50,500 homes, building up to 60,000 in 2030. In 2025, housing targets were missed, with completions coming in at 36,200. However, this is a healthy increase of 20.4% on the previous year, with an increase of 38.7% in the number of apartments completed. These are positive early signs that an improved regulatory environment will lead to a sustained increase in output over time.
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Housing completions are forecast to reach 37,000, 40,500 and 44,500 in 2026, 2027 and 2028 respectively, still below what independent estimates show is required to meet demand. Davy estimate that there is currently demand for 93,000 new units a year with pent-up demand for c. 230,000 homes, or more than 10% of the housing stock. Capital financing requirements are also very large and could top EUR40 billion by 20314.
To address this chronic supply and demand imbalance, the Government has approved changes to the Irish residential rent control system. These changes are intended to increase the supply of rental accommodation and attract crucial investment. The new changes are to take effect from 1 March 2026. The rents for new build apartments will not be subject to the current 2% cap but will be linked to inflation and capped by the Consumer Price Index ("CPI"). This applies to new apartment developments commenced on or after 10 June 2025.
- No changes will be implemented for tenancies created before 1 March 2026. - Landlords of tenancies created on or after 1 March 2026 will be able to reset the rent levels to market rent
between tenancies. During the tenancy increases are subject to the lower of 2% or CPI. - Landlords of tenancies created on or after 1 March 2026 will be able to reset the rent levels to market rent at the
end of each 6-year tenancy period.
There will be a new distinction between "large" and "small" landlords. Large landlords are those who have four or more tenancies and small landlords are those with three or fewer tenancies. Different termination rules will apply to large and small landlords.
The Company welcomes these changes. Although it will take time for the changes to translate into new supply, in the long run this will be positive for the rental sector and its ability to increase housing output. When PRS yields increased globally, the severity of the previous rent regulations in Ireland caused yields to increase by far more than in other European markets. Prime net PRS yields in Dublin have increased by 115 bps from 3.6% to 4.75% from peak to trough. The prime net yield in Dublin of 4.75% is now one of the highest in Europe. The recent proposed changes in rent regulations should reduce the spread in Dublin's prime net PRS yield versus other European markets. Any potential tightening in yields due to new rent regulations will have a positive impact on development viability, helping stimulate new supply and unlocking challenged developments.
Regulatory Change and Improving Market Conditions Bring Positive Outlook For Investment
Ireland's residential investment market experienced a sluggish start to 2025, with just EUR10 million deployed across two transactions in Q1. However, the market began to pick up pace with the Government indicating plans for a revised regulatory framework, and volumes reached EUR400 million for the full year 2025. CBRE Ireland estimate residential transaction volumes will more than double in 2026, with forecasts of EUR800 million to EUR1 billion. Transactional activity across all sectors picked up towards the end of the year, and a total of EUR2.5 billion of investment trades completed in 2025. Activity is expected to accelerate further in 2026, with forecasts exceeding EUR3 billion and possibly trending towards EUR4 billion5.
CBRE Ireland have forecast that against the backdrop of increasing volumes, liquidity and an improved regulatory framework providing certainty, they 'expect prime PRS yields to compress by 25 bps this year as new capital competes for stock in a market that is supported by a number of tailwinds, including being the most targeted sector for investors around Europe and seeing more favourable debt terms on offer5.
1. Central Statistics Office 2. EU Commission Autumn Economic Forecasts 3. Central Bank of Ireland Q4 2025 Bulletin 4. Davy: Reforms needed for housing delivery February 2025 5. CBRE Ireland Research: 2026 Market Outlook
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 view on how the risk has changed or trended during the year ended 31 December 2025.
Geopolitical Instability, Economy and Inflation
Risk Continuing heightened levels of global instability in economic and geopolitical arenas could lead to a
general weakening of the Irish economy and increasing inflation. 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. Overall, while Ireland's economy is resilient, its
openness makes it vulnerable to global economic and political shifts.
High
Strategic
Impact The risk remains high. Reduced economic activity, driven by external shocks or domestic pressures, could
negatively affect business performance, asset values and net rental income. Inflationary pressures,
especially if input and payroll costs outpace rent inflation, could further erode net rental income 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.
Mitigation I-RES' properties continue to experience exceptional demand when units are available with occupancy of
Strategy 99.5% as at 31 December 2025 (99.4% at 31 December 2024).
There is also strong continuing focus through our internal teams on active revenue 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. 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 c. 85%. Following
this refinancing, the current weighted average cost of interest across the Group's facilities is 3.71%,
broadly in line with the Group's weighted average financing costs in 2024.
Increasing
Uncertainty and volatility persist in the global landscape, though global trade in 2025 was more
resilient than initially anticipated. The Irish economy continues to show resilience, but downside risks
are mounting due to geopolitical fragmentation, ongoing trade tariffs and the potential for economic
downturns. The Central Bank's Q4 2025 Bulletin highlights risk from multinational concentration,
Risk Trending supply-side constraints, and slightly higher services inflation.
Since
31 December
2024
The ECB's rate cuts throughout 2025 have stabilized the interest rate environment, but inflation remains
elevated (3.2% year-on-year in November 2025), with forecasts for 2026 suggesting a moderation toward
Central Bank targets (1.8 - 2.1%). However, energy costs are expected to remain high and uncertainty
around US tax and trade policy could further impact the Irish economy. Cost pressures are likely to
persist into 2026 due to inflation's lagged effects.
Regulatory and Legislative Impacts
Risk
In recent years, changes to rental property, tax and REIT regulations in Ireland have been made which
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 has faced 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 limiting annual rent
increases to the lower of HICP and 2% (and extended in May 2024 out to December 2025), continued to
impact on I-RES' ability to increase rents in line with increasing costs despite high demand for
properties continuing and thus impacted on I-RES' attractiveness as an investment vehicle.
Recent proposed changes to the rental property regulations, if implemented, should reduce this risk.
I-RES actively engages with Government departments and contributes to consultations on relevant sector
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