Irish Residential Properties Reit Plc · EURONEXT:IRES
Irish Residential Properties Reit — Investor Presentation (November 2015)
45 slides from Irish Residential Properties Reit's investor presentation, November 2015
Slide 1: Investor Presentation
Investor Presentation November 2015
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS This presentation has been prepared by Irish Residential Properties REIT PLC (the “Company”) for information purposes only. This presentation does not take into account the impact of reports of new rental and development regulations, and management awaits the introduction of le
Slide 3: Background
Background Irish Residential Properties REIT Plc (I•RES) was formed when it was a subsidiary of Canadian Apartment Properties REIT (CAPREIT) Initial acquisition of 338 residential apartments from Receiver for Lloyd’s Bank in September 2013 I•RES became a REIT and completed an initial offering of €20
Slide 4: Strong Real Estate Fundamentals
Strong Real Estate Fundamentals Current portfolio of 1,566 apartments as at 30 October 2015 – High quality, well-maintained, wtd. avg. age 7.6 years Significant supply/demand imbalance Growing Irish economy Full occupancy and strong rental growth 80.6% NRI margin for the six months ended 30 June 201
Slide 5: Proven Property Manager & Investment Advisor
Proven Property Manager & Investment Advisor S&P/TSX Index & CAPREIT total return • Founded in 1997, one of first Canadian REITs 934% • High returns in rent controlled environment • 46,617 apartments and land lease sites coast-to- coast in Canada(1) • 867 employees(1) − Available and experienced sup
Slide 6: Modern High Quality Portfolio
Modern High Quality Portfolio Tyrone Court Charlestown Kings Court Camac Crescent 92 apartments 235 apartments 83 apartments 90 apartments Bakers Yard 85 apartments Lansdowne Gate 224 apartments The Marker 84 apartments The Laurels 19 apartments Grande Central 65 apartments Priorsgate Beacon South Q
Slide 7: Proven Acquisition Capabilities
Proven Acquisition Capabilities €413 million total purchase price (1) €447 million total fair value(2) Portfolio (cumulative) 2,000 Tyrone Court Rockbrook Portfolio + 92 + 270 1,500 Orange Portfolio + 761 1,000 The Marker Initial Portfolio The Laurels + 84 500 338 + 19 IPO 0 Apr '14 Jun '14 Jul '14
Slide 8: Successful Business Model
Successful Business Model Professional Property Attention to Strong Tenant Management Maintenance Relationships Solid Organic Growth 8
Slide 9: Multi Residential Sector Advantages
Multi Residential Sector Advantages 1 Stable cash flow from diverse resident group 2 Short-term leases, predictable increases(1) 3 Experienced, proven property management 4 Acquisitions at discount to replacement cost (1) Reports indicate that lease terms may be increased to 2 years. This wo
Slide 10: Strong Apartment Outlook
Strong Apartment Outlook • Significant supply / demand imbalance Dublin Housing required • Irish economy continues to strengthen 2014–2018 5 year period • Increasing apartment sector - Encouraged by government policy Housing starts 2014 - Central bank mortgage limits - Immigrants natural apartment d
Slide 11: Strengthening Irish Economy
Strengthening Irish Economy Strong in 2015 GNP growth and forecast for 2016 6.9% 8.0% 7.0% 5.0% 4.6% 6.0% 5.0% 3.3% 4.0% 3.0% 1.1% 2.0% 1.0% 0.0% 2012 2013 2014 2015F 2016F Source: Central Statistics Office, Bank of Ireland Unemployment is dropping 2,200 16.0% 2,150 14.0% 2,100 2,050 12.0% 2,000 10.
Slide 12: Population Growth
Population Growth Growing Irish population Ireland population growth (%) 2.00% 1.80% 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 2011 2012 2013 2014 2015 Source: Central Statistics Office, base year 2010 Population growth is supported by the highest birth rate in Europe Ireland net populat
Slide 13: Financial Review
Grande Central | Sandyford, Dublin 18 Financial Review
Slide 14: Significant Accomplishments in 2015
Significant Accomplishments in 2015 • Secondary equity offering raised €215 million to fund growth • Acquired 362 apartments for total cost of c. €110.1 million(1) • Paid maiden dividend of 0.48 cent per share on 31 March 2015 • Paid second interim dividend of 0.20 cent per share on 4 September 2015
Slide 15: Industry-Leading Occupancy & AMR
Industry-Leading Occupancy & AMR As at 30 June 2015 31 Dec 2014 30 June 2014 Occupancy 99.5% 99.7% 99.4% Average Monthly Rent €1,364 €1,250 €1,070 NRI Margin(1) 80.6% 81.0% 77.7% As At 30 June 2015 Net Initial Yield at Cost 5.5% (1) For the six months ended 30 June 2015, 31 December 2014, and 30 Jun
Slide 16: Solid Portfolio Growth
Solid Portfolio Growth As At 30 June 2015 31 Dec 2014 Portfolio Occupancy 99.5% 99.7% Turnovers and Renewals 70% - Weighted Average Rent Increase(1) 13.2% - (1) On turnovers and renewals for the six months ended 30 June 2015 16
Slide 17: Strong Operating Performance
Strong Operating Performance Six Months Ended 30 June 2015 30 June 2014 Gross Rental Income (€,000) 11,198 2,187 Net Rental Income (€,000) 9,026 1,700 Fair Value Gain (€,000) 10,098 6,016 Profit (€,000) 14,824 5,853 17
Slide 18: Strong Financial Performance
Strong Financial Performance As At 30 June 2015 31 Dec 2014 Total Property Value Increase over Cost(1) +8.3% +5.7% Total Same Property Value Increase(2) +4.3% - Basic & EPRA Net Assets (€,000) 419,451 200,918 Basic & EPRA NAV per Share (cent per share) 100.6 99.5 Pro-Forma Basic & EPRA NAV per share
Slide 19: I-RES Net Asset Value
I-RES Net Asset Value • Growth Factors for EPRA NAV: Portfolio value increases Strong rental growth with Strong net rental income margin of 80.6% to date (1) • Limiting factors for current EPRA NAV(2) in the short-term: Two equity capital raises in last 15 months Acquisition transaction co
Slide 20: Growth Strategies
Camac Crescent | Inchicore, Dublin 8 Growth Strategies
Slide 21: Growth & Performance to Continue
Growth & Performance to Continue Continuing rent increases Strong acquisition pipeline Accretive intensification opportunity Accretion through low interest rates 21
Slide 22: Growing the Portfolio
Growing the Portfolio Consolidate fragmented Irish apartment market Significant pipeline of future acquisitions Intensification and development opportunities Considering social housing and student housing opportunities 22
Slide 23: Significant Acquisition Capacity from Gearing
Significant Acquisition Capacity from Gearing Gearing at only 5.0%(1) €315 million to €390 million capacity(1) At target gearing of 45% to 50% Enhancing Attractive low interest rates Portfolio Acquisitions accretive to EPRA EPS Value (1) As at 30 September 2015 23
Slide 24: Strong Acquisition Pipeline
Strong Acquisition Pipeline €13.6 billion of property assets as of 31 December 2014 Regional exposures were as follows: Dublin 45% (€6bn) NAMA Rest of Republic of Ireland 20% (€2.7bn) United Kingdom 24% (€3.3bn) Rest of World / Other 11% (€1.5bn) Off-market Private off-market opportuni
Slide 25: Summary
Summary Significant supply/demand imbalance Close to full occupancy and strong rental growth Strong NRI margin €315 million to €390 million capacity with gearing at 45% to 50%(1) – At low accretive interest rates Strong pipeline for growth (1) As at 30 September 2015 25
Slide 26: Property Portfolio
Property Portfolio
Slide 27: High Quality Portfolio
HIGH QUALITY PORTFOLIO Average Value as at Commercial monthly Property Year Date # apartments Total # of 30 June space owned rent per Occupancy Location Location Built Acquired owned(1) apartments(1) 2015(1) (sqm)(1) apt.(1) (3) (1) (3) 1 Kings Court Smithfield 2006 10 Sep 2013 83 83 €17.0m 566 €1,2
Slide 28: Kings Court
KINGS COURT North King Street, Smithfield, Dublin 7 Property details(1) Year Built: 2006 # of apartments owned: 83 Total # of apartments: 83 Valuation as at 30 June: €17.0m Passing rent as at 30 June: €1.3m (annualised) AMR per apartment as at 30 June: €1,264 Occupancy as at 30 June: 100.0% Commerci
Slide 29: Grande Central
GRANDE CENTRAL Rockbrook, Sandyford , Dublin 18 Property details(1) Year Built: 2008/20092007 Suites: # of apartments owned: 63 65 Passing Total # ofrent apartments: as at 31 December: €1.0m (annualized) 195 AMR per suite Valuation as atas 30atJune: 31 December: €1,339 €19.3m Occupancy Passing renta
Slide 30: Priorsgate
PRIORSGATE Greenhills Road, Tallaght, Dublin 24 Property details(1) Year Built: 2007 # of apartments owned: 102 Total # of apartments: 198 Valuation as at 30 June: €17.3m Passing rent as at 30 June: €1.4m (annualised) AMR per apartment as at 30 June: €1,017 Occupancy as at 30 June: 100.0% Commercial
Slide 31: Camac Crescent
CAMAC CRESCENT Turvey Avenue, Inchicore, Dublin 8 Property details(1) Year Built: 2008 2008 Suites: # of apartments owned: 90 90 Passing Total # ofrent apartments: as at 31 December: €1.2m (annualized) 110 AMR per suite Valuation as atas 30atJune: 31 December: €1,063 €16.6m Occupancy Passing rentasa
Slide 32: The Laurels
THE LAURELS Main Street, Tallaght, Dublin 24 Property details(1) Year Built: 2007 # of apartments owned: 19 Total # of apartments: 19 Valuation as at 30 June: €2.8m Passing rent as at 30 June: €0.3m (annualised) AMR per apartment as at 30 June: €1,099 Occupancy as at 30 June: 100.0% Commercial Area:
Slide 33: The Marker
THE MARKER Grand Canal Square, Docklands, Dublin, Dublin 2 Property details(1) Year Built: 2012 # of apartments owned: 84 Total # of apartments: 105 Valuation as at 30 June: €55.4m Passing rent as at 30 June: €2.6m (annualised) AMR per apartment as at 30 June: €2,283 Occupancy as at 30 June: 97.6% C
Slide 34: Beacon South Quarter
BEACON SOUTH QUARTER Beacon South Quarter, Sandyford, Dublin 18 Property details(1) Year Built: 2007/2008 # of apartments owned: 217 Total # of apartments: 850 Valuation as at 30 June: €77.8m Passing rent as at 30 June: €4.9m (annualised) AMR per apartment as at 30 June: €1,559 Occupancy as at 30 Ju
Slide 35: Charlestown
CHARLESTOWN Charlestown Place, Finglas, Dublin 11 Property details(1) Year Built: 2007 # of apartments owned: 235 Total # of apartments: 285 Valuation as at 30 June: €52.8m Passing rent as at 30 June: €3.3m (annualised) AMR per apartment as at 30 June: €1,177 Occupancy as at 30 June: 100.0% Commerci
Slide 36: Bakers Yard
BAKERS YARD North Portland Street, Dublin, Dublin 1 Property details(1) Year Built: 2007/2008 # of apartments owned: 85 Total # of apartments: 132 Valuation as at 30 June: €19.4m Passing rent as at 30 June: €1.3m (annualised) AMR per apartment as at 30 June: €1,229 Occupancy as at 30 June: 100.0% Co
Slide 37: Lansdowne Gate
LANSDOWNE GATE Lansdowne Gate, Drimnagh, Dublin 12 Property details(1) Year Built: 2005 # of apartments owned: 224 Total # of apartments: 280 Valuation as at 30 June: €59.0m Passing rent as at 30 June: €3.5m (annualised) AMR per apartment as at 30 June: €1,297 Occupancy as at 30 June: 100.0% Commerc
Slide 38: Rockbrook Grande Central
ROCKBROOK GRANDE CENTRAL Rockbrook, Sandyford, Dublin 18 Property details(1) Year Built: 2008/20092007 Suites: # of apartments owned: 63 81 Passing Total # ofrent as at 31 December: apartments: €1.0m (annualized) 195 AMR per suite Valuation as atas 30at 31 December: June: €1,339 €25.8m(2) Occupancy
Slide 39: Rockbrook South Central
ROCKBROOK SOUTH CENTRAL Rockbrook, Sandyford, Dublin 18 Property details(1) Year Built: 2008/20092007 Suites: # of apartments owned: 63 189 Passing Total # ofrent apartments: as at 31 December: €1.0m (annualized) 224 AMR per suite Valuation as atas 30atJune: 31 December: €1,339 €64.5m(2) Occupancy P
Slide 40: Tyrone Court
TYRONE COURT Tyrone Court, Inchicore, Dublin 8 Property details(1) Year Built: 2008/20092014 Suites: # of apartments owned: 63 92 Passing Total # ofrent apartments: as at 31 December: €1.0m (annualized) 128 AMR per suite Purchase priceas asatat31 30December: June: €1,339 €19.5m Occupancy Passing ren
Slide 41: Appendices
APPENDICES Grande Central | Rockbrook, Sandyford, Dublin 1 41
Slide 42: Experienced and Knowledgeable Leadership Team
Experienced and Knowledgeable Leadership Team David Ehrlich – I•RES CEO Senior partner of Stikeman Elliott LLP for over ten years until 31 December 2013 Focused his practice since 1986 on the public real estate markets and was involved in creating the REIT industry in Canada, including the forma
Slide 43: Strong Majority Independent Board
STRONG MAJORITY INDEPENDENT BOARD Colm O’Nualláin – Independent Non-Executive Chairman Over 20 years of experience as Finance Director of Grafton Group Plc, a leading builders merchant group quoted on the London Stock Exchange Qualified Chartered Accountant with international experience previous
Slide 44: Management Arrangements Summary
MANAGEMENT ARRANGEMENTS SUMMARY IRES Fund Management Limited (“IRES Fund”), an indirect wholly owned subsidiary of CAPREIT, became authorised as an AIFM on 28 October 2015. As disclosed in the Company’s recent prospectuses, the investment management agreement between the Company and IRES Fund (t
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