Ireland’s largest residential property investor generated a net income of €6.3 million in the first three months of this year and flagged trading in line with expectations.
In a trading update Irish Residential Properties REIT (Ires) said income increased 7 per cent compared to the same period last year as group occupancy levels stay around 99 per cent.
The company confirmed it acquired 128 apartments in Finglas, Dublin 11, for a total purchase price of €39.995 million funded by its existing credit facility. The transaction is expected to complete by the end of May.
In a client note, Goodbody analyst Colm Lauder said the acquisition is a "logical" one. "The focus on higher quality new build suburban property gives Ires the ability to build a competitive income stream over peers, especially given how aggressive pricing has become in the city centre," he added.
Additionally, it said it had received planning permission to convert a commercial space in Tallaght to 19 residential apartments while the company is progressing plans for three other developments.
At the end of March the group’s loan to value ratio was 34.7 per cent and following the completion of the Finglas acquisition, that ratio will rise to 37.4 per cent.
Ires owns 2,451 residential units in Ireland and is listed on the Irish stock exchange.
