15-05-2025
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.
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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.'
