Ires records 53% income rise with positive 2017 outlook

Irish Residential Properties REIT (Ires) has generated net income of €5.5 million between July and the end of September 2016.

This compares to €3.6 million for the same period last year, a gain of 53 per cent, largely due to acquisitions and strong organic growth, the company said in a trading update.

“There is a pipeline for growth available through further sales by the National Asset Management Agency and private off market transaction opportunities as well as the development of apartments on currently owned sites,” it said.

During the period, Ires acquired 89 apartments with 145 car parking spaces at Coldcut Park, Clondalkin, Dublin 22 for €18.3 million, bringing its total number of apartments to 2,377 and the total invested to €596 million.

It has also submitted a planning application to Dun Laoghaire Rathdown County Council for the construction of 492 apartments and commercial space at Rockbrook, Sandyford, Dublin 18.

It said the development of 68 apartments at Beacon South Quarter, Sandyford is progressing to plan.

The group maintained high residential occupancy levels of approximately 99 per cent. In the first nine months of 2016, approximately 8 per cent of apartments renewed and 19 per cent of apartments turned over to new tenants.

For the 2016 accounting period, the board intends to pay a dividend in March 2017.

In a note, Davy estimated rents as a percentage of average monthly earnings in Dublin are between 35 per cent and 40 per cent.

“With annualised rental growth of 9 per cent, management’s ability to generate further organic growth will be influenced by the pace of wage inflation through 2017,” it said.

“We remain positive on Ires given the deep imbalance between demand and supply in Dublin’s housing market, the quality and location of its 2,377 unit portfolio and the group’s 560 unit development pipeline which could add €8.8 million in gross rents.”

From Irish Times (2/11/2016)