Irish Residential Properties Reit Plc · EURONEXT:IRES
Irish Residential Properties Reit — Investor Presentation (March 2017)
51 slides from Irish Residential Properties Reit's investor presentation, March 2017
Slide 1: Investor Presentation
IRISH RESIDENTIAL PROPERTIES REIT plc INVESTOR PRESENTATION MARCH 2017
Slide 2: Cautionary Statements
DISCLAIMER 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 introdu
Slide 3: Agenda
INTRODUCTION Agenda Profile Highlights Reasons to invest in I•RES Performance Review Outlook Appendix 1 Appendix 2 3
Slide 4: Profile
INTRODUCTION Profile I•RES became a REIT and completed an initial offering of €200 million in April 2014, followed by an offering of €215 million completed in March 2015 Mission Management Provide shareholders with sustainable, Professionally managed by CAPREIT’s long-term and growing dividends. Iri
Slide 5: Highlights
IRISH RESIDENTIAL PROPERTIES REIT plc Highlights Active period with Strong operating strategic high quality results supported by strong acquisitions and development market fundamentals Delivering shareholder • Since initial offering, acquired 2,039 apartments, including 763 in 2016 • Strong occupanc
Slide 6: Reasons to Invest in I•RES
IRISH RESIDENTIAL PROPERTIES REIT plc Reasons to Invest in I • RES Sustainable Strong Growing Real Estate Yields Fundamentals Innovative and Accretive Hands on Acquisitions Business Model and Developments 6
Slide 7: Innovative and Hands on Business Model
REASONS TO INVEST IN I RES Innovative and Hands on Business Model 7
Slide 8: Proven Investment Manager
REASONS TO INVEST IN I RES Proven Investment Manager I•RES Fund Management, an Irish subsidiary of CAPREIT, is the S&P/TSX Index & CAPREIT total return company’s investment manager. 1300% ABOUT CAPREIT CAPREIT 1,221% Founded in 1997, one of first Canadian REITs 1100% High returns in rent controlle
Slide 9: Sustainable Growing Yields
REASONS TO INVEST IN I RES Sustainable Growing Yields Residential sector with high quality assets give long-term, sustainable and steady returns Sustained rental growth being achieved in the Dublin residential lettings market + Strong development pipeline for I RES = Growing dividends for I RES
Slide 10: Highly Accretive Acquisitions
REASONS TO INVEST IN I RES Highly Accretive Acquisitions Modern property portfolio with weighted average of 8.8 years Excellent locations in Dublin Superior Neighbourhood Features Amazing Amenities Convenient transportation, In close proximity to many retail Playgrounds and beautiful with most pro
Slide 11: Accretive Planned Development
REASONS TO INVEST IN I RES Accretive Planned Development Opportunity to add approximately 600(1) apartments at currently-owned I RES properties New apartments can be built at lower cost than market - Significant infrastructure already built (parking, etc.) Submitted a revised planning applicatio
Slide 12: First Intensification Development
REASONS TO INVEST IN I RES First Intensification Development 68 apartments at block B2B (Beacon South Quarter), Sandyford Dublin 18 • Direct access via tram to Dublin City Centre in 20 minutes • Home to high profile employers General contractor on a fixed price basis Expected Gross Yield in the ra
Slide 13: Strong Real Estate Fundamentals
REASONS TO INVEST IN I RES Strong Real Estate Fundamentals Growing Significant Favourable Strong Rental Irish Supply/Demand Interest Rate Growth Economy Imbalance Environment Opportunities Upward pressure is being Brexit uncertainty will • New legislation with 4% applied on employee affect Irish e
Slide 14: Strengthening Irish Economy
REASONS TO INVEST IN I RES Strengthening Irish Economy Strong 2015 GNP growth and forecast for 2016 and 2017 6.9% 8.0% 7.0% 5.7% 6.0% 4.6% 5.0% 3.3% 3.3% 3.1% 4.0% 3.0% 2.0% 1.0% 0.0% 2016F 2017F 2012 2013 2014 2015 Source: Central Statistics Office, Central Bank of Ireland Unemployment is droppin
Slide 15: Population Growth
REASONS TO INVEST IN I RES Population Growth Growing Irish population Population growth is supported by the highest birth rate in Europe 3.00% 200 150 2.50% 100 2.00% 25.8 38.4 50 20.1 10.5 7.7 16.5 1.50% 0 1.00% -50 -100 0.50% -150 0.00% 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016
Slide 16: Supply and Demand Imbalance
REASONS TO INVEST IN I RES Supply and Demand Imbalance Significant supply / demand imbalance Increasing apartment sector • Encouraged by government policy Dublin • Central bank mortgage limits • Immigrants natural apartment dwellers • Strong foreign direct investment base for Housing required empl
Slide 17: Performance Review
G R A N D C E N T R A L – S A N DY F O R D, D U B L I N 1 8 Performance Review 17
Slide 18: Portfolio Performance
PERFORMANCE REVIEW Portfolio Performance As at 31 Dec 2016 31 Dec 2015 Occupancy 98.7% 96.0% Average Monthly Rent(1) €1,427 €1,372 Gross Yield 6.6% 6.2% NRI Margin(2) 78.8% 80.8% (1) Average monthly rent for stabilised residential properties owned by the Company as of 31 December 2015 up 8.6% as at
Slide 19: Strong Operating Performance
PERFORMANCE REVIEW Strong Operating Performance Year Ended 31 Dec 2016 31 Dec 2015 Gross Rental Income (€,000) 38,754 24,721 Net Rental Income (€,000) 30,555 19,968 Basic Earnings Per Share (cents) 11.3 8.4 EPRA Earnings Per Share (cents) 4.9 3.3 Weighted Average Number of Shares 417,135,631 367,520
Slide 20: Strong Financial Position
PERFORMANCE REVIEW Strong Financial Position As At 31 Dec 2016 31 Dec 2015 Net Assets & EPRA Net Assets €469.6M €435.0M Basic & EPRA NAV per share (cents per share) (1) 112.5 104.3 Group Total Gearing 31.3% 8.8% As At 31 Dec 2016 Acquisition / Development Capacity (2) c. €150.0M (1) Dividends paid i
Slide 21: Outlook
Outlook Growth Strategies • Strong Acquisitions • Strong Developments Growing Stable Dividends 21 GRAND CENTRAL – SANDYFORD, DUBLIN 18
Slide 22: Strong Acquisition and Development Pipeline
O U T LO OK Strong Acquisition and Development Pipeline D O Development Off-Market Transactions 600(1) apartments and Private off-market opportunities other opportunities / in place infrastructure (garages) N P NAMA Private Equity Investors Significant remaining Private equity investors have apartme
Slide 23: Strong, Steady & Sustainable Growing Dividends
O U T LO OK Strong, Steady & Sustainable Growing Dividends 20.4M payable in 13.1M paid in 2016 2017 for the 2016 for the 2015 accounting period accounting period 1.8M paid in 2015 Focused on creating for the 2014 shareholder value accounting period 23
Slide 24: Appendix
IRISH RESIDENTIAL PROPERTIES REIT plc INVESTOR PRESENTATION APPENDIX 1 24
Slide 25: Property Locations
IRISH RESIDENTIAL PROPERTIES REIT plc Property Locations # of Property Apartments(1) 1 Kings Court 83 2 Grande Central 65 8 3 Priorsgate 103 4 Camac Crescent 90 5 The Laurels 19 6 The Marker 84 Beacon South Quarter 225 9 7 8 Charlestown 235 19 13 17 6 Bakers Yard 85 4 1 9 10 Lansdowne Gate 224 10 14
Slide 26: High Quality Portfolio
IRISH RESIDENTIAL PROPERTIES REIT plc High Quality Portfolio Commercial # apartments Total # of Value as at 31 space owned Average mthly Property Location Location Year Built Date Acquired owned(1) apartments(1) (7) Dec 2016(1) (sqm)(1) rent per apt.(1) (2) (3) Occupancy (1) (2) 1 Kings Court Smithf
Slide 27: Bakers Yard
North Portland Street, Dublin, Dublin 1 Bakers Yard Property Details(1) Year Built: 2007/2008 # of apartments owned: 85 Total # of apartments: 132 Valuation as at 31 Dec: €21.0m Passing rent as at 31 Dec: €1.5m (annualised) AMR per apartment as at 31 Dec: €1,359 Occupancy as at 31 Dec: 100.0% Commer
Slide 28: Beacon South Quarter
B e a c o n S o u t h Q u a r t e r, S a n d y f o r d , D u b l i n 1 8 Beacon South Quarter Property Details(1) Year Built: 2007/2008 # of apartments owned: 225 Total # of apartments: 850 Valuation as at 31 Dec: €82.0m Passing rent as at 31 Dec: €5.3m (annualised) AMR per apartment as at 31 Dec: €
Slide 29: Bessboro
B e s s b o r o , Te r e n u r e , D u b l i n 6 Bessboro Property Details(1) Year Built: 2008 # of apartments owned: 40 Total # of apartments: 40 Valuation as at 31 Dec: €12.4m Passing rent as at 31 Dec: €0.7m (annualised) AMR per apartment as at 31 Dec: €1,436 Occupancy as at 31 Dec: 100.0% Commer
Slide 30: Camac Crescent
Tu r vey Ave n u e , I n c h i c o r e , D u b l i n 8 Camac Crescent Property Details(1) Year Built: 2008 # of apartments owned: 90 Total # of apartments: 110 Valuation as at 31 Dec: €19.6m Passing rent as at 31 Dec: €1.4m (annualised) AMR per apartment as at 31 Dec: €1,298 Occupancy as at 31 Dec:
Slide 31: Charlestown
Charlestown Place, Finglas, Dublin 11 Charlestown Property Details(1) Year Built: 2007 # of apartments owned: 235 Total # of apartments: 285 Valuation as at 31 Dec: €57.8m Passing rent as at 31 Dec: €3.6m (annualised) AMR per apartment as at 31 Dec: €1,279 Occupancy as at 31 Dec: 99.1% Commercial Ar
Slide 32: City Square
City Square, Gloucester Street, Dublin 2 City Square Property Details(1) Year Built: 2006 # of apartments owned: 23 Total # of apartments: 27 Valuation as at 31 Dec: €5.7m Passing rent as at 31 Dec: €0.4m (annualised) AMR per apartment as at 31 Dec: €1,527 Occupancy as at 31 Dec: 100.0% Commercial A
Slide 33: Coldcut Park
Coldcut Road, Clondalkin, Dublin 22 Coldcut Park Property Details(1) Year Built: 2012 # of apartments owned: 89 Total # of apartments: 93 Valuation as at 31 Dec: €19.4m Passing rent as at 31 Dec: €1.4m (annualised) AMR per apartment as at 31 Dec: €1,342 Occupancy as at 31 Dec: 97.8% Commercial Area:
Slide 34: Elmpark Green
Elmpark, Merrion Road, Dublin 4 Elmpark Green Property Details(1) Year Built: 2006 # of apartments owned: 201 Total # of apartments: 332 Valuation as at 31 Dec: €59.7m Passing rent as at 31 Dec: €3.5m (annualised) AMR per apartment as at 31 Dec: €1,459 Occupancy as at 31 Dec: 98.5% Commercial Area:
Slide 35: Grande Central
Rockbrook, Sandyford , Dublin 18 Grande Central Property Details(1) Year Built: 2007 # of apartments owned: 65 Total # of apartments: 195 Valuation as at 31 Dec: €20.9m Passing rent as at 31 Dec: €1.2m (annualised) AMR per apartment as at 31 Dec: €1,557 Occupancy as at 31 Dec: 98.5% Commercial Area:
Slide 36: Kings Court
North King Street, Smithfield, Dublin 7 Kings Court Property Details(1) Year Built: 2006 # of apartments owned: 83 Total # of apartments: 83 Valuation as at 31 Dec: €19.9m Passing rent as at 31 Dec: € 1.4m (annualised) AMR per apartment as at 31 Dec: €1,354 Occupancy as at 31 Dec: 100.0% Commercial
Slide 37: Lansdowne Gate
Lansdowne Gate, Drimnagh, Dublin 12 Lansdowne Gate Property Details(1) Year Built: 2005 # of apartments owned: 224 Total # of apartments: 280 Valuation as at 31 Dec: €64.1m Passing rent as at 31 Dec: €3.9m (annualised) AMR per apartment as at 31 Dec: €1,437 Occupancy as at 31 Dec: 98.7% Commercial A
Slide 38: Priorsgate
G r e e n h i l l s R o a d , Ta l l a g h t , D u b l i n 2 4 Priorsgate Property Details(1) Year Built: 2007 # of apartments owned: 103 Total # of apartments: 198 Valuation as at 31 Dec: €19.2m Passing rent as at 31 Dec: €1.6m (annualised) AMR per apartment as at 31 Dec: €1,120 Occupancy as at 31
Slide 39: Rockbrook Grande Central
Rockbrook, Sandyford, Dublin 18 Rockbrook Grande Central Property Details(1) Year Built: 2007 # of apartments owned: 81 Total # of apartments: 195 Valuation as at 31 Dec: €28.0m Passing rent as at 31 Dec: €1.7m (annualised) AMR per apartment as at 31 Dec: €1,528 Occupancy as at 31 Dec: 98.8% Commerc
Slide 40: Rockbrook South Central
Rockbrook, Sandyford, Dublin 18 Rockbrook South Central Property Details(1) Year Built: 2007 # of apartments owned: 189 Total # of apartments: 224 Valuation as at 31 Dec: €71.1m Passing rent as at 31 Dec: €3.6m (annualised) AMR per apartment as at 31 Dec: €1,563 Occupancy as at 31 Dec: 99.5% Commerc
Slide 41: Tallaght Cross West
Ta l l a g h t C r o s s We s t , Ta l l a g h t , D u b l i n 2 4 Tallaght Cross West Property Details(1) Year Built: 2008 # of apartments owned: 442 Total # of apartments: 507 Valuation as at 31 Dec: €85.8m Passing rent as at 31 Dec: €7.0m (annualised) AMR per apartment as at 31 Dec: €1,194 Occupa
Slide 42: The Forum
Fo r u m , S a n d y f o r d , D u b l i n 1 8 The Forum Property Details(1) Year Built: 2007 # of apartments owned: 8 Total # of apartments: 127 Valuation as at 31 Dec: €2.3m Passing rent as at 31 Dec: €0.2m (annualised) AMR per apartment as at 31 Dec: €1,569 Occupancy as at 31 Dec: 100.0% Commerci
Slide 43: The Laurels
M a i n S t r e e t , Ta l l a g h t , D u b l i n 2 4 The Laurels Property Details(1) Year Built: 2007 # of apartments owned: 19 Total # of apartments: 19 Valuation as at 31 Dec: €3.2m Passing rent as at 31 Dec: €0.3m (annualised) AMR per apartment as at 31 Dec: €1,197 Occupancy as at 31 Dec: 100.0
Slide 44: The Marker
Grand Canal Square, Docklands, Dublin, Dublin 2 The Marker Property Details(1) Year Built: 2012 # of apartments owned: 84 Total # of apartments: 105 Valuation as at 31 Dec: €58.1m Passing rent as at 31 Dec: €2.9m (annualised) AMR per apartment as at 31 Dec: €2,554 Occupancy as at 31 Dec: 94.0% Comme
Slide 45: Tyrone Court
Ty r o n e C o u r t , I n c h i c o r e , D u b l i n 8 Tyrone Court Property Details(1) Year Built: 2014 # of apartments owned: 92 Total # of apartments: 128 Valuation as at 31 Dec: €23.5m Passing rent as at 31 Dec: €1.6m (annualised) AMR per apartment as at 31 Dec: €1,419 Occupancy as at 31 Dec:
Slide 46: Appendix
IRISH RESIDENTIAL PROPERTIES REIT plc INVESTOR PRESENTATION APPENDIX 2 46
Slide 47: Experienced and Knowledgeable Leadership Team
IRISH RESIDENTIAL PROPERTIES REIT plc 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 i
Slide 48: Strong Majority Independent Board
IRISH RESIDENTIAL PROPERTIES REIT plc 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
Slide 49: Strong Majority Independent Board
IRISH RESIDENTIAL PROPERTIES REIT plc Strong Majority Independent Board Thomas Schwartz – Non-Executive Director (IRES Fund Nominee) & Director of IRES Fund • Over 35 years of real estate experience and currently President and CEO of CAPREIT (TSX: CAR.UN) • Founder of CAPREIT in 1997 and supervised
Slide 50: Management Arrangements Summary
IRISH RESIDENTIAL PROPERTIES REIT plc 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 agreemen
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