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Highlights
- I-RES posts 1.4% earnings growth for 2024, driven by asset recycling and organic rental increases.
- The portfolio remains 99.4% occupied, reflecting strong demand and effective operations.
- Strategic initiatives, including a share buyback programme, set to enhance shareholder value in 2025.
Irish Residential Properties REIT plc (I-RES), the leading provider of rental homes in Ireland, has released its annual results for the twelve-month period ending 31 December 2024. The company demonstrated solid progress, with improvements across key performance metrics and earnings growth in a challenging market environment.
I-RES’ CEO, Eddie Byrne, commented on the year’s results: "2024 has been a year of solid progress for I-RES. Following the conclusion of our Strategic Review in August, we delivered improvements across key performance metrics, including achieving earnings growth. Our asset recycling programme remains a key value driver, delivering strong sales premiums, improving portfolio composition, and providing us with excess capital to deploy against growth options such as a forthcoming share buyback programme. Looking ahead, our focus is to maximise value for shareholders and continue engaging with the Government on rental regulations."
Financial and Operational Highlights:
- Earnings Growth: The company reported a 1.4% growth in Adjusted EPRA earnings for the year, totalling €28.9 million (2023: €28.5 million). Adjusted EPRA EPS increased to 5.5 cents (2023: 5.4 cents), showcasing sustained profitability.
- Asset Recycling Success: I-RES continued to benefit from its strategic asset recycling programme, delivering a sales premium significantly ahead of book values. The company completed the sale of 66 units in 2024, contributing to a strong €1.6 million premium from the sale of 21 units individually.
- Portfolio Occupancy: The company maintained near full occupancy with a rate of 99.4%, consistent with the previous year. This reflects strong demand for quality rental properties in Dublin and I-RES' efficient operating platform.
- Revenue Performance: Like-for-like revenue growth stood at 1.7%, driven by organic rental increases and new initiatives across the portfolio. Reported revenue for the year was €85.3 million, a decrease of 2.9% compared to 2023, due to the asset disposals completed in 2024 and 2023.
- Cost Control and Financing: Financing costs decreased by 12.4% to €23.4 million, reflecting the deployment of disposal proceeds to reduce variable debt. The global decline in interest rates also supported reduced financing costs.
- Non-Recurring Costs: The company recorded non-recurring costs of €3.4 million, largely related to shareholder activism and the completion of its Strategic Review.
Despite a non-cash fair value reduction of €33.7 million, which resulted in a loss before tax of €6.7 million, I-RES’ focus on strategic growth, asset disposals, and rigorous cost management ensures its continued ability to adapt and thrive in an evolving market. As of 31 December 2024, the company’s IFRS NAV per share stood at 126.2 cents, down from 131.7 cents in 2023.
