Latest news with #IresReit
Irish Times
11 hours ago
- Business
- 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 Times
15-05-2025
- Business
- Irish Times
Ireland's biggest private landlord sees strong rental demand
Demand for rental accommodation in Ireland continued to drive the State's largest residential landlord Ires Reit , with the company also turning to new measures to generate income from its existing asset portfolio. In an update ahead of its annual general meeting, the company said net rental income margin continued to improve in the first quarter, following a strong performance in the final months of 2024. Ires said it would continue to focus on cutting costs and implementing additional income generating initiatives to capitalise on underutilised real estate assets, including car parking. Rent collections also remain strong, at more than 99 per cent. Ires's portfolio has an occupancy rate of 99.7 per cent, up from 99.4 per cent in December. The company said there was strong momentum on disposals in the first three months of the year, as part of its strategic review initiative. Following 66 unit disposals last year, Ires has now completed the 13 units it highlighted at the end of December for sale, with a further 12 in the pipeline for disposal in the near term. The company is targeting the sale of at least 50 units in 2025, at a premium of between 15 and 20 per cent on average. READ MORE [ Meet the man running Ireland's biggest landlord firm, with 3,734 apartments in Dublin Opens in new window ] The period also saw Ires announce the refinancing of its existing revolving credit facility, which comprised a credit facility of €500 million and an increased accordion facility of €200 million on a five-year term with two one-year extensions available. Chief executive Eddie Byrne said the company was encouraged by the strong momentum of the business. 'The execution of our recycling programme is in line with our expected time frame and will further strengthen our financial position,' he said. 'Th 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 company recently returned €5 million to shareholders through a buyback scheme. '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,' Mr Byrne 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.'
Irish Times
02-05-2025
- Business
- Irish Times
Microsoft's massive Irish dividends
Microsoft's Irish subsidiaries paid dividends worth $41 billion (€36.3 billion) to its US parent across its 2024 financial year and the first months of 2025, as the tech giant's Irish business continued to grow. The payments are likely to be noticed in Washington, given the Trump administration's focus on getting American firms to shift business back to the US. Ciara O'Brien has the details. The chief executive of Ires Reit, the largest private apartments owner in the State, has called for a simple increase to the current rent cap in housing pressure zones, in order to encourage investors and developers back into this area of the housing market. Joe Brennan has the story, after sitting down with Eddie Byrne for an interview . PwC Ireland reported a 2.8 per cent increase in net revenue last year to €469 million, the latest transparency report for the Big Four accounting and consulting firm has revealed. Ciaran Hancock reports. Glanbia's top brass came in for relentless criticism this week at its AGM, as angry investors unloaded their ire over a weak share price and apparent struggles at the company. Eoin Burke-Kennedy asks what has gone wrong for the Kilkenny-based company. READ MORE In World of Work, Margaret E Ward looks at why short tempered bosses are a recipe for disaster. Northern Ireland's economy has long been an underperforming part of the UK, and these days also trails the Republic. In his column, John FitzGerald looks at the issue, and possible fixes. Galway-based Complete Laboratory Solutions (CLS) is investing €9 million in staff training as it expands into new sectors and eyes up the prospects for international expansion. Dominic Coyle has the story. The levels of capital investment by Irish SMEs had not recovered from the 'scarring effects of the pandemic' in 2023, a study by the Economic and Social Research Institute (ESRI) has found. Hugh Dooley reports. Hugh also reports that global investment fund Ara Partners has raised more than $800 million (€708.7 million), sweeping past its fund target of $500 million with the aim of scaling companies with significant decarbonisation impacts. Just weeks after winning his first Masters title, Rory McIlroy is linking up with investment firm TPG to launch a sports fund , joining an increasing number of current athletes delving into asset management. Dublin-based Smurfit Westrock said net sales for the first quarter of the year rose to $7.66 billion (€6.7 billion), following its merger last year that saw it create one of the largest packaging groups in the world. Ciara and Joe read the accounts. AIB's financial performance was better than expected in the first quarter of the year, its chief executive said on Thursday, despite fears that Trump administration policies will hit global trade and economic growth. Joe has the details. Stay up to date with all our business news: sign up to our Business Today daily email news digest. If you'd like to read more about the issues that affect your finances try signing up to On the Money , the weekly newsletter from our personal finance team, which will be issued every Friday to Irish Times subscribers.
Irish Times
02-05-2025
- Business
- Irish Times
Ires chief executive favours ‘simple' rent-cap increase under Government review
The chief executive of Ires Reit , the largest private apartments owner in the State, has called for a simple increase to the current rent cap in housing pressure zones, in order to encourage investors and developers back into this area of the housing market. Speaking in an interview with this news organisation, Eddie Byrne, who has led Ires for the past year, said a so-called reference rent system, as proposed by the Housing Commission last year, would be too complicated to set up and further delay a much-needed reboot of private rental sector (PRS) development. A reference rent regime would link rates to local properties of a similar standard. 100 days of Trump: 'It's like The Karate Kid, tax on, tax off, tariffs on, tariffs off' Listen | 42:49 The Department of Housing confirmed that it has received a copy of a report it requested from the Housing Agency on the current rent pressure zones regime in advance of the expiry of legislation underpinning the system at the end of this year. READ MORE Minister for Housing James Browne 'will be considering it before bringing proposals to Government in due course as appropriate', it said in an emailed response to questions. Rent pressure zones were introduced in late 2016 and were designed to cap rent increases in areas where there is high demand for housing and rental homes. An initial annual rent cap of 4 per cent was reduced to 2 per cent, or the rate of inflation, whichever is lower, in mid-2021. [ Has Fingal County Council found a solution to our housing crisis? Opens in new window ] Taoiseach Micheál Martin signalled in February that the current system may be changed, or even removed, as current legislation underpinning it expires at the end of 2025. 'What does a reference-rate system actually mean in practice? I heard the chairman of the Housing Commission [John O'Connor] say recently that it would take two years or more to come up with a system of reference rents,' said Mr Byrne. 'You have reference rent regimes in other parts of Europe, but, as I understand them, they are really, really complicated.' Asked whether he would favour a return of the initial 4 per cent annual limit, he replied: 'What I will say is, when it was at that level, there was investment in apartment building. Of course, interest rates were also lower at the time. But if you consider that pension funds are typically the types of investors that are ultimately behind PRS, an asset generating 4 per cent growth per annum is appealing.' Mr Byrne said that Ires is happy to operate with rent pressure zones. 'But it needs to balance resident and tenant protections with the need to encourage investment. If you don't have that balance – and we don't have it today – you can see what that does to supply,' he said. In recent years, Approved Housing Bodies and the Land Development Agency (LDA) have stepped in to address part of the gap in apartment building. However, they are focused on social and affordable accommodation. [ Top finance official raises risks to public finances from surge in housing body deals Opens in new window ] LDA chief executive John Coleman said in a recent interview with The Irish Times that there had been a 'market failure' as mainly overseas money that had previously flooded into the private rental sector largely evaporated since 2021.
