Irish Residential Properties (IRES) H2 2024 earnings summary

Executive summary

• 2024 saw internal transformation with new leadership, strategic review, and operational initiatives focused on revenue, cost, and capital management.

• Achieved continued strategic and financial progress, with improvements across key metrics and a focus on operational excellence and asset recycling.

• Maintained a high-quality, fully occupied portfolio with strong energy credentials and high tenant satisfaction.

• Asset recycling and capital optimization were key, with a program to sell 315 units over 3–5 years progressing well.

• The board concluded that a sale of the company or its assets would not maximize shareholder value, opting instead for internal value creation initiatives.

Financial highlights

• Adjusted EPRA earnings grew 1.4% year-over-year to €28.9m; adjusted earnings (excluding fair value movements) up 8.7%.

• Like-for-like revenue increased 1.7% year-over-year; NRI margin at 76.8%, up from 76.5% in H1.

• Adjusted EBITDA declined 5% due to asset disposals, while financing costs fell 12.4% to €23.4 million.

• Proposed final dividend of €0.022 per share, a 10% increase year-over-year.

• Portfolio value at €1,232.2m, with EPRA net initial yield stable at 5.1%.

Outlook and guidance

• Positioned for continued strong performance, supported by a robust balance sheet and stabilised valuations.

• Demand for high-quality rental accommodation in Ireland remains robust, supporting future growth.

• At least 50 unit sales are projected for 2025 as part of the asset recycling program.

• Regulatory changes are anticipated towards the end of 2024, with the government expected to revise rent regulations.

• Expecting increased transaction activity and improved market environment as inflation moderates and ECB rate cuts take effect.