Kalkine Media ASX Share Market News & Research
Watchlist Sign Up/Login
Kalkine Media ASX Share Market News & Research

Irish Residential Properties Shares Trading Update for Q3 2024

3 min read | November 22, 2024 05:19 PM GMT | By Team Kalkine Media
Irish Residential Properties Shares Trading Update for Q3 2024
Image source: Shutterstock

Recent News

Make Kalkine Media
My Trusted Source

Google Source

Highlights

  • Occupancy: Strong portfolio occupancy of 99.4% as of 30 September 2024.
  • Financial Position: Loan-to-Value (LTV) ratio reduced to 45.0%, well below the 50% limit.
  • Disposals: Completed the sale of 37 units, with total gross sales proceeds expected to be between €35-37 million.
  • Strategic Review: Progress made on strategic initiatives, including asset recycling and income-generating actions.

Irish Residential Properties REIT plc ("I-RES"), Ireland’s largest private rental accommodation provider, released a trading update for the third quarter of 2024, alongside progress on its Strategic Review, which concluded in August.

Operational Performance

I-RES maintained strong operational performance:

  • Occupancy Rates: The occupancy rate for the portfolio stood at 99.4% at the end of Q3 2024, only slightly down from 99.6% in Q2 2024. This high level reflects the quality of the properties and continued strong demand for rental accommodation in Dublin.
  • Net Rental Income (NRI) Margin: The Company expects NRI margin for the full year to be in line with the 76.5% margin achieved in H1 2024, despite the impact of strategically executed disposals.

Financial Strength

I-RES continues to maintain a robust financial position:

  • Loan-to-Value (LTV) Ratio: The LTV ratio was 45.0% as of 21 November 2024, a slight improvement from 45.4% at 30 June 2024, well below the 50% cap imposed by debt covenants and Irish REIT legislation.

Strategic Review Progress

I-RES has made significant strides in executing its Strategic Review:

  • Asset Disposals: The Company has completed the sale of 37 units, contributing to its target of 315 units, achieving sales premiums of around 25%. Total gross sales proceeds from these disposals are expected to be between €35 million and €37 million. I-RES plans to dispose of at least 50 additional units in 2025 at sales premiums of 15% to 20%.
  • Income Generation & Cost Reduction: The Company has successfully implemented initiatives across about 4% of its portfolio, expecting an annualized increase of 8-10% in NRI for these units.
  • Cork Market Exit: A strategic exit from the Cork market has been completed to streamline operations, with a focus on maximizing efficiencies in the greater Dublin area.

Capital Allocation & Shareholder Value

I-RES remains committed to maximizing shareholder value:

  • Capital Deployment: Proceeds from asset disposals will be used to manage LTV within the target range of 40% to 45%. The Board is also focused on returning excess capital to shareholders, particularly given the discount between the Company's market capitalization and Net Asset Value.
  • Future Plans: The Company will provide a further update on capital allocation strategies and progress with its value-enhancing initiatives at the release of the 2024 full-year results in February 2025.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.