Irish Residential Properties (IRES) H2 2025 earnings summary

Executive summary

• Achieved a step change in operational and financial performance, with 99.5% occupancy, over 99% rent collection, improved margins, and earnings growth driven by strategic initiatives and cost control.

• Asset recycling program delivered sales premiums over 25% above book value, supporting capital allocation focused on long-term shareholder value.

• Dividend payout at 85% of earnings, with full-year dividend increased by 20% to EUR 0.0489 per share and IFRS NAV per share up 4.4%.

• Regulatory changes in Ireland's rental sector are expected to enhance business outlook, stimulate investment, and introduce new rent resetting mechanisms.

• Disposed of 41 units at a 25%+ premium to book value, with 21 held for sale at year-end.

Financial highlights

• Adjusted EPRA earnings per share rose 2.3% year-on-year; adjusted earnings (excluding fair value movements) grew 7.4%.

• Occupancy remained at 99.5%, with rent collections exceeding 99%.

• Revenue increased to €85.5m, up 0.2% year-on-year despite portfolio disposals; NRI margin improved by 120 basis points to 78%.

• Profit before tax reached €49.7m, reversing a prior year loss of €6.7m; EPRA EPS growth of 16%.

• EPRA NTA per share increased to 132.2c from 126.5c; IFRS NAV per share at 131.7c.

Outlook and guidance

• Confident in valuation outlook as inflation, interest rates, and rent controls have subsided.

• Expect to realize substantial embedded rent reversion as new regulations allow resetting rents to market on new tenancies from March 2026.

• Pipeline of earnings-enhancing assets is strong, with reinvestment of disposal proceeds prioritized.

• Forward funding of developments is under consideration to support housing supply.

• Regulatory changes expected to stimulate investment, increase liquidity, and tighten yields in the Irish PRS market.