Irish Residential Properties (IRES) H1 2025 earnings summary

Executive summary

• Achieved significant operational and financial improvements in H1 2025, including a 150 bps increase in NOI/NRI margin, strong progress on strategic initiatives, and asset disposals at over 25% premium to book value.

• Nearly full occupancy at 99.5% and rent collections above 99% maintained, with average monthly rent up 1.5% year-over-year to €1,823.

• Completed €5m share buyback and announced a 25.5% increase in interim dividend to 2.36c per share.

• Positioned to capitalize on positive regulatory changes and improving market conditions, with a focus on operational efficiency and portfolio optimization.

• Successful refinancing of €500m RCF and €200m accordion facility, extending debt maturity to 4.6 years/2030.

Financial highlights

• Adjusted EPRA earnings per share increased by 2.9% year-over-year; adjusted earnings (excluding fair value movements) grew by 9.5%.

• Interim dividend of €0.0236 per share proposed, a 25.5% increase year-over-year.

• Profit before tax reached €16.3 million, with EPRA EPS growth of 23.8%.

• Revenues decreased by 0.4% due to asset disposals and low rental growth; NRI increased 1.6% to €33.3m.

• NOI/NRI margin increased to 78% in H1 2025.

Outlook and guidance

• Expect positive impact on valuations and income profile from new rental regulations effective March 2026.

• Asset recycling program to continue, targeting 50 unit sales in 2025.

• Market conditions improving with stabilized yields, lower interest rates, and easing regulatory headwinds.

• Focus remains on executing strategic objectives, growing revenue, and managing costs.

• Exceptional demand outlook underpinned by strong macroeconomic and demographic trends.