Ireland's largest private residential landlord Ires Reit said the strong market led to strong rental growth and increased occupancy across its property portfolio in 2017.
Revenue from the company’s investment properties rose to €44.7 million during the year ended December 31st 2017, up from €38.8 million a year earlier. Rental income was €36.3 million, up from €30.6 million the previous year, while profit was €65.1 million for the year, compared with €47 million a year earlier.
The company reported net rental income margin of 81.2 per cent for the year, compared with 78.8 per cent at the end of 2016. That was driven by higher revenues from investment properties, lower vacancies, lower property taxes, and a tax grouping between Ires, Ires Residential Properties Limited and Ires Fund Management that produced savings on property management fees and payroll chargebacks.
Organic growth was attributed in part to rising monthly rents, while residential occupancy levels were at 99.8 per cent at the end of 2017.
The company said basic earnings per share were 15.6 cent, with EPRA earnings per share at 6 cents for the year. Ires said it intended to declare an additional dividend of 2.7 cents per share for the year, which brings the total for the year to 5.2 cent per share.
The company has invested around €644 million in 2,450 apartments across Dublin.
Planning stages
Ires also has a number of development sites that are currently going through planning stages.
During the year, the company completed construction of 68 apartments in Beacon South Quarter, Sandyford, which were fully leased by August, and is working on preliminary alternative designs for the construction of apartments and commercial space at Rockbrook, Sandyford. It also acquired a 4.5 acre development site in Hansfield Wood, Dublin 15 for €7 million, where it plans to develop 99 residential units as part of a €2 million development agreement.
In February, Ires entered into interest rate swap agreements totalling €160 million, with a maturity date of January 2021.
Ires chief executive Margaret Sweeney said the company was implementing its strategy – to acquire and develop assets in attractive neighbourhoods with good transport links – successfully.
“We continue to invest strongly in the supply of apartments and houses for rent through a combination of acquisitions and build to let,” she said. “In 2017, we successfully completed and fully let The Maple, our first development, while also commencing construction on our first project where we partnered with local developers to deliver Hansfield Wood – a 4.5 acre, 99 unit residential development.
“These projects are illustrative of our strategy to invest in our assets through intensification, developments on existing Ires properties, continued accretive acquisitions, and as opportunities arise, investments in urban centres outside of Dublin. The success of our strategy is evident in EPRA earnings per share rising to 6.0 cents for the year ended December 31st 2017.”
