Irish Residential Properties REIT's Q1 occupancy levels rise
Irish Residential Properties REIT, Ireland's largest private residential landlord, has today reported occupancy levels of 99.7% for the first quarter of 2025, up from 99.4% in the previous quarter.
In a trading update ahead of its AGM today, it said the increase was underpinned by exceptional demand for rental accommodation in Ireland and its "efficient" operating model, and reflected the high quality of its modern portfolio of assets.
I-RES REIT said its Net Rental Income margin continued to improve in the first three months of the year compared to the second half of 2024, adding that it continues to implement additional income generating and cost reduction initiatives as identified in its Strategic Review.
The company said that disposals under that review initiative continued their strong momentum into 2025, after the completion of 66 unit disposals in 2024.
As previously announced at the end of December, it had 13 units in the pipeline for disposal. It said today that 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 premium of between 15% and 20%, having had a strong start to the year delivering premia in excess of this range," it added.
Eddie Byrne, CEO of I-RES, said the company was 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," he said.
"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," the CEO said.
He also said that consistent with the company's capital allocation strategy and also recognising the current discount between its share price and its Net Asset Value per share, it completed a share buyback programme, returning €5m 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," he said.
"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," he added.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Times
15 hours ago
- Irish Times
Former Ires activist Vision to lose one board nominee as it cuts stake below 3%
Ires Reit shareholder Vision Capital, which secured board seats for two nominees last year to resolve a standoff with the company, is on track to see one of those representatives step down after it reduced its holding in the business below 3 per cent. Toronto-based Vision, led by Jeff Olin, started a year-long campaign in April 2023 for a sale or break-up of Ireland's largest private apartments owner . It reached a truce 14 months ago that resulted in two candidates it put forward joining the Dublin-listed company's board. Vision owned about 5 per cent of the stock at the time. The two directors were one-time chief operating officer of Canada's CIBC Bank Richard Nesbitt and Amy Freedman, an investment banker turned corporate consultant. They were part of a unanimous board conclusion last August, following a strategic review, that a sale or break-up of the company would not be in investors' best interests. Vision subsequently cut its stake in Ires, which is led by chief executive Eddie Byrne . Last September, its shareholding fell below 4 per cent and it reduced its holding further on Tuesday to 2.96 per cent, according to stock exchange filings. READ MORE The standstill agreement between Ires and Vision last year provides that Ms Freedman would step down from the board if the investment firm's stake were to fall below 3 per cent. Shares in Ires, which has 3,734 residential units in Dublin, have rebounded almost 16 per cent so far this year to €1.05, driven by falling European Central Bank (ECB) interest rates which have boosted investor appetite for property stocks. Still, the stock has pulled back by about 5 per cent from highs reached earlier this month as investors digest the Government's planned reform of rent controls . A planned new nationwide control system – set to fully kick in from March 2026 – would see rent increases for tenancies capped in most cases by inflation or a maximum cap of 2 per cent. However, landlords would be able to reset rents at the going market rate when a tenant leaves. Smaller landlords with three or fewer units will have to offer rolling six-year tenancies, while large ones will not be able to evict a tenant who has complied with their obligations except in very limited circumstances. Rent control for new apartments constructed following enactment of the legislation would be linked to inflation without the 2 per cent cap. This, the Government said, should 'provide certainty, clarity and encourage investment'.
Irish Independent
11-06-2025
- Irish Independent
Companies have become cautious about making investments, says Central Bank
In its first Financial Stability Review of 2025, the bank says its assessment is that the risks facing the financial system have increased since it last reported in December. 'In the short run, the main channel through which these developments are likely to affect the domestic economy is uncertainty as well as a reduction in external demand,' said Gabriel Makhlouf, the bank's governor. 'There has already been some softening in consumer sentiment and industry engagement points to cautiousness amongst companies, at least for now, in terms of new investments.' He said that borrowers and the Irish banking system have built up substantial resilience in recent years, and these strong financial positions provide an important buffer against potential adverse shocks. 'Given the ongoing uncertainty, however, it is important that we are prepared for potential macro or market shocks, and that the financial system is maintaining – and indeed, where necessary, building - both financial and operational resilience for the period ahead,' Mr Makhlouf said. Increased uncertainty may lead to even stronger household savings, which would slow consumption and broader economic activity, and potentially affect house purchase decisions, the Financial Stability Review says. It noted that the April consumer sentiment index, the first since US president Donald Trump announced reciprocal tariffs, reported the largest decline since the onset of the COVID-19 pandemic, although this was followed by a modest improvement in May. 'A large proportion of households are employed in multinational enterprise-dominated sectors, or in the broader export-orientated sectors. An analysis of stock of mortgage credit shows a high proportion of lending to households in these exposed sectors,' the Review says. 'While the debt-service ratio for households has remained stable over the past number of years, credit risk via [that] sector represents a potential channel through which a trade shock may impact the domestic financial sector.' Although they are in a stronger position than in the past, households are exposed to potential future increases in borrowing costs, the bank points out. About 40pc of mortgages are on variable rates. Of the rest, most are fixed for less than five years. ADVERTISEMENT The Government could also face higher interest rates on its borrowings, the Review notes. As global government bonds yields rise, the interest bill on Ireland's national debt will go up, and loans will roll over onto higher rates than in the past. The higher cost of corporate bonds could also have an impact on the housing market, leading to less investment in house-building. 'As non-bank lenders that are active in Irish real estate can be sensitive to global capital market developments, a persistent deterioration in global financial conditions would have implications for development financing and could exacerbate the recent falls in private capital for residential development,' the Review says. 'Further, while the Irish sovereign has a current strong funding position, Ireland's high US exposures combined with any perceived or realised negative economic impacts arising from future trade or tax announcements may raise future borrowing costs.'
Irish Independent
10-06-2025
- Irish Independent
Carlow entrepreneur Illann Power among latest tax defaulters list with bill of €781,000
Mr Power has been hit with a penalty of €781,061 'relating to a non-declaration of income tax' according to the tax defaulters list for the first quarter of this year. This was the lone case of a court determined penalty, which is handed down in cases 'where there is no agreement to a penalty, or a person fails to agree an agreed penalty'. Mr Power, with an address in Ballyconnell in Tullow, Co Carlow, had previously faced charges including forgery and reckless filing of company information. Details of 19 cases settled outside of court were published by Revenue on Tuesday, with the settlements in these cases totalling €6.2m. The list included Co Clare-based health and safety consultants, a Co Cavan medical practitioner and three landlords. The largest settlement was paid by Lifetime Brands Europe Limited, a household goods wholesaler with an address at The Hub, Nobel Way, Birmingham in the UK. The company had been subject to a Level 2 Risk Review for the non-declaration of Vat. The settlement paid by the company totalled €1,115,755, made up of €777,606 in tax, €104,868 in interest and €233,281 in penalties. It has since been paid in full. A total of €74,862.50 in court imposed fines was handed down across 51 cases. I&L Biosystems Ireland Limited, a laboratory equipment supplier based in Unit D6, North City Business Park, North Road, Finglas in Dublin, paid the next largest settlement of €761,677. This was made up of €529,264 in tax, €60,634 in interest and €161,779 in penalties, and has also been paid in full. Dublin 2 property development company SSC Property ICAV, with an address on Earlsfort Terrace, was found to have an under declaration of €490,926 in Vat. The total owed by the company came to more than €648,301 with the addition of penalties and interest. There were three unpaid settlements as of March 31, including €334,393 that remained unpaid by Co Limerick used car dealer Gannon Auto Limited, based at Elm Court in Ballyneety. €267,476 owed by Cavan landlord Kieran McMorrow, with an address at Apartment 2, The Plaza, College Street, also remained unpaid as of March 31. €150,371 owed by Oluwa's Medical Limited, a medical staff provider with an address at 14 Elm Road in Fota Rock, Carrigtwohill, Co Cork, remained unpaid at the end of the quarter.
