Irish Residential Properties Reit Plc · EURONEXT:IRES
Irish Residential Properties Reit — H1 2022 Earnings Presentation
25 slides from Irish Residential Properties Reit's earnings presentation, Aug 11, 2022
Slide 1: Building Communities & Creating Value
Building Communities & Creating Value Irish Residential Properties REIT plc Interim Results Presentation Six Months to 30 June 2022 The School Yard| Dublin 1
Slide 2: Disclaimer
DISCLAIMER Cautionary Statements liability whatsoever (in negligence or otherwise, whether reasonableness of, and no reliance should be placed on, This presentation has been prepared by Irish Residential direct or indirect, in contract, tort or otherwise) for any loss such forward-looking statements
Slide 3: Contents
The School Yard | Dublin 1 Contents 1 H1 2022 Highlights 2 Financial Results 3 Delivering on our Investment Strategy 4 Market Fundamentals 5 Outlook IRES REIT Plc | Interim Results 2022 3
Slide 4: Resilient Performance and Well Positioned to Navigate Evolving Macro Environment
HIGHLIGHTS Resilient Performance and Well Positioned to Navigate Evolving Macro Environment › Gross revenue from investment properties increased 6.7% to €42.1m in H1 2022 Solid H1 22 › Occupancy remained high at 99.3% (31 Dec 2021: 98.6%), with high rent collection rates of 98.7% Financial Performan
Slide 5: Internalisation Platform Provides Competitive Advantage
HIGHLIGHTS Platform Provides Competitive Advantage to Drive Internalisation Scalability & Efficiency, Manage Costs and Improve Resident Experience Key milestones • Internalisation of Property Management and Acquisitions team Our People Investment Management Agreement (‘IMA’) 2014 – Jan 2022 • Added
Slide 6: Contents
The School Yard | Dublin 1 Contents 1 H1 2022 Highlights 2 Financial Results 3 Delivering on our Investment Strategy 4 Market Fundamentals 5 Outlook IRES REIT Plc | Interim Results 2022 6
Slide 7: Investment and Operational Excellence Delivering Solid Results
FINANCIAL RESULTS Investment and Operational Excellence Delivering Solid Results For the six months ended 30 Jun 2022 30 Jun 2021 % change › Resilient results despite an uncertain macro Income Statement (€m) environment, with strong occupancy at 99.3% Revenue from Investment Properties 42.1 39.4 6
Slide 8: Non-recurring costs & Internalisation
FINANCIAL RESULTS Non-recurring costs & Internalisation Proforma IMA Non-recurring cost analysis (€’m) 30 Jun 2022 31 Dec 2021 IMA cost analysis (€’m) expenses IT Data Migration and Implementation 2.8 2.1 Property Management fee 2.6 Legal and Other Advisory Fees 1.6 2.1 Asset Management fee and othe
Slide 9: Property Valuation
FINANCIAL RESULTS Property Valuation Property Value 30 Jun 31 Dec As at Equivalent Yield Equivalent Yield 2022 2021 Valuation MAX MIN WA MAX MIN WA 4% Investment properties 1,528.1 5.41% 3.90% 4.52% 1,450.6 5.43% 3.90% 4.53% (€m) Properties under - - - - 18.0 4.25% 4.25% 4.25% development (€) Deve
Slide 10: Robust Balance Sheet with Healthy Capital Structure
FINANCIAL RESULTS Robust Balance Sheet with Healthy Capital Structure Balance Sheet 30 Jun 2022 30 Dec 2021 % change Sources of Funding RCF Private Placement Notes Total Property Value (€m) 1,552.7 1,493.4 4.0% Quantum €600m €200m (euro equivalent) Net Asset Value (€m) 888.7 881.4 0.8% Fund
Slide 11: Contents
Elmpark Green | Dublin 4 Contents 1 H1 2022 Highlights 2 Financial Results 3 Delivering on our Investment Strategy 4 Market Fundamentals 5 Outlook IRES REIT Plc | Interim Results 2022 11
Slide 12: Modern portfolio with strong operating metrics
INVESTMENT STRATEGY l DELIVERING A SUSTAINABLE BUSINESS Young modern portfolio, weighted average age of 13.1 years1, 4 Modern portfolio with strong operating metrics 10% 5% <2 16% 2 to 5 6 to 9 3% Age 10 to 13 3,998 100% 94% 11% 14 to 16 55% >17 High-quality homes Renewable energy Portfolio BER acro
Slide 13: Three-Pronged Investment Strategy
Three-Pronged Investment Strategy INVESTMENT STRATEGY l DELIVERING A SUSTAINABLE BUSINESS Acquisitions Portfolio of 38 Properties with c.4,000 homes 1 January 2022 Acquisition: Added to portfolio 108 homes at Ashbrook, Ashbrook 108 homes Clontarf Disciplined capital allocation policy to generate
Slide 14: Recent Acquisition: Ashbrook, Clontarf
INVESTMENT STRATEGY l DELIVERING A SUSTAINABLE BUSINESS Recent Acquisition: Ashbrook, Clontarf Acquisition and forward purchase of 152 homes executed in January 2022 with delivery in two phases 108 homes delivered with 44 new homes under a forward purchase contract with delivery anticipated for
Slide 15: Completed Development: School Yard, Dublin City Centre
INVESTMENT STRATEGY l DELIVERING A SUSTAINABLE BUSINESS Completed Development: School Yard, Dublin City Centre Recently completed development of 61 new apartments on site adjacent to Baker’s Yard, all units occupied by 1 August 2022 Designed to LEED Gold Standard certification, with all units BE
Slide 16: Forward Purchase to be delivered: Tara View, Merrion Road, Dublin 4
INVESTMENT STRATEGY l DELIVERING A SUSTAINABLE BUSINESS Forward Purchase to be delivered: Tara View, Merrion Road, Dublin 4 I-RES entered into a contract on 16 November 2018 for the forward purchase of 69 residential units at Merrion Road at an investment of €47.1 million (including VAT, but exclu
Slide 17: Placing People at the Heart of Our Business
INVESTMENT STRATEGY l DELIVERING A SUSTAINABLE BUSINESS Placing People at the Heart of Our Business Resident & Community Engagement 38% 22.5 Annual resident survey completed Recycling and waste management programmes Tallaght University Hospital Female Board Average hours of Space leased to Talla
Slide 18: Transition to a low carbon economy and delivering sustainable living solutions
INVESTMENT STRATEGY l DELIVERING A SUSTAINABLE BUSINESS Transition to a low carbon economy and delivering sustainable living solutions Focus on Maintaining Transparency Awarded in 2021 Work in progress Board commitment to Net Zero carbon economy Sustainability strategy review and alignment Con
Slide 19: Contents
Contents 1 H1 2022 Highlights 2 Financial Results 3 Delivering on our Investment Strategy 4 Market Fundamentals 5 Outlook IRES REIT Plc | Interim Results 2022 19
Slide 20: Supportive of Long-Term Growth
MARKET FUNDAMENTALS Supportive of Long-Term Growth Forecast Irish & EU Countries GDP Growth1 Highest growth in Source: European Commission 2022 Low Unemployment Rate Source: CSO, ECB Europe in 2021 2021: 13.5% % 12 2022f: 5.3% 11 2023f: 4.0% 10 9 8 6.5% 7 6 5 4.8% 4 3 2 2015 2016 2017 2018 2019 2020
Slide 21: Supportive of Long-Term Growth
MARKET FUNDAMENTALS Supportive of Long-Term Growth New Dwelling Completions Below Target Level (units) Source: CBI 2022 Irish Residential Market: 35,000 Solid fundamentals Housing for All plan estimates an average of 33,000 30,000 new homes needed each year from 2021 to 2030 25,000 Significant und
Slide 22: Contents
Tara View| Dublin 4 Contents 1 H1 2022 Highlights 2 Financial Results 3 Delivering on our Investment Strategy 4 Market Fundamentals 5 Outlook IRES REIT Plc | Interim Results 2022 22
Slide 23: Resilient business with strong financial position and high cash flow generation
SUMMARY Resilient business with strong financial position and high cash flow generation Strong fundamentals in the Irish Macro factors Business resilient and well positioned multifamily sector… Inflation pressure, affordability & cost of living Growing young population Strong track record & pr
Slide 24: Thank you for your time
Better living made simple Thank you for your time For more information please visit: www.iresreit.ie/investors Ashbrook| Dublin 3 24 IRES REIT Plc | Interim Results 2022
Slide 25: Irish Residential Properties REIT plc
Irish Residential Properties REIT plc South Dock House, Hanover Quay DO2 XW94, Ireland www.investorrelations.iresreit.ie ie.linkedin.com/company/ires
Irish Residential Properties REIT — H1 2022 Earnings Presentation on 6ix