Irish Residential Properties Reit Plc · EURONEXT:IRES
Irish Residential Properties Reit — Investor Presentation (January 2017)
50 slides from Irish Residential Properties Reit's investor presentation, January 2017
Slide 1: Investor Presentation January 2017
IRISH RESIDENTIAL PROPERTIES REIT plc INVESTOR PRESENTATION JANUARY 2017
Slide 2: Disclaimer: 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 Proven Accretive Investment Acquisitions Manager and Developments 6
Slide 7: 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. 1500% ABOUT CAPREIT 1300% 1,077% Founded in 1997, one of first Canadian REITs High returns in rent controlled enviro
Slide 8: 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 9: 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 10: 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.) Announced submission of planning applic
Slide 11: 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 12: 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 13: 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% 4.5% 5.0% 3.3% 3.3% 3.1% 4.0% 3.0% 2.0% 1.0% 0.0% 2016F 2017F 2012 2013 2014 2015 Unemployment is dropping 2,150 16.0% 2,100 14.0% 2,050 12.0% 2,000 10.0% 1,950 1,9
Slide 14: Population Growth
REASONS TO INVEST IN I RES Population Growth Growing Irish population Population growth is supported by the highest birth rate in Europe 5.00% 200 4.50% 150 4.00% 100 3.50% 25.8 38.4 3.00% 50 20.1 10.5 7.7 16.5 2.50% 0 2.00% -50 1.50% 1.00% -100 0.50% -150 0.00% 2011 2012 2013 2014 2015 2016 2011
Slide 15: 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 16: 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 16
Slide 17: Portfolio Performance
PERFORMANCE REVIEW Portfolio Performance As at 30 June 2016 31 Dec 2015 Occupancy 98.3% 96.0% Average Monthly Rent(1) €1,465 €1,372 NRI Margin(2) 78.4% 80.8% Same Property NRI (3) +6.6% - (1) Average monthly rent for stabilised residential properties owned by the Company as of 31 December 2015 up 6.
Slide 18: Strong Operating Performance
PERFORMANCE REVIEW Strong Operating Performance 6 Months Ended 30 June 2016 30 Jun 2015 Gross Rental Income (€,000) 17,890 11,198 Net Rental Income (€,000) 14,030 9,026 Basic Earnings Per Share (cents) 5.9 4.7 Basic EPRA Earnings Per Share (cents) 2.2 1.5 Weighted Average Number of Shares 417,000,00
Slide 19: Strong Financial Position
PERFORMANCE REVIEW Strong Financial Position As At 30 June 2016 31 Dec 2015 Basic & EPRA Net Assets €446.9M €435.0M Basic & EPRA NAV per share (cents per share) (1) 107.2 104.3 Gearing 30.2% 8.6% As At 30 Sep 2016 Acquisition / Development Capacity (2) €145.0M (1) Dividends paid in March 2016 relati
Slide 20: Outlook
Outlook Growth Strategies • Strong Acquisitions • Strong Developments Growing Stable Dividends 20 GRAND CENTRAL – SANDYFORD, DUBLIN 18
Slide 21: 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 22: Strong, Steady & Sustainable Growing Dividends
O U T LO OK Strong, Steady & Sustainable Growing Dividends 13.1M paid in 2016 1.8M paid in 2015 for the 2015 for the 2014 accounting period accounting period Stable, sustainable Focused on creating and growing dividends shareholder value over long term 22
Slide 23: Appendix
IRISH RESIDENTIAL PROPERTIES REIT plc INVESTOR PRESENTATION APPENDIX 1 23
Slide 24: Property Locations
IRISH RESIDENTIAL PROPERTIES REIT plc Property Locations # of Property Apartments(1) 1 Kings Court 83 2 Grande Central 65 8 3 Priorsgate 102 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 25: High Quality Portfolio
IRISH RESIDENTIAL PROPERTIES REIT plc High Quality Portfolio Commercial # apartments Total # of Value as at 30 space owned Average mthly Property Location Location Year Built Date Acquired owned(1) apartments(1) (7) June 2016(1) (sqm)(1) rent per apt.(1) (2) (3) Occupancy (1) (2) 1 Kings Court Smith
Slide 26: 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 30 June: €20.0m Passing rent as at 30 June: €1.5m (annualised) AMR per apartment as at 30 June: €1,343 Occupancy as at 30 June: 100.0% Co
Slide 27: 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 30 June: €82.6m Passing rent as at 30 June: €5.2m (annualised) AMR per apartment as at 30 June
Slide 28: 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 30 June: €12.3m Passing rent as at 30 June: €0.7m (annualised) AMR per apartment as at 30 June: €1,368 Occupancy as at 30 June: 97.5% Com
Slide 29: 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 30 June: €18.9m Passing rent as at 30 June: €1.4m (annualised) AMR per apartment as at 30 June: €1,256 Occupancy as at 30 Ju
Slide 30: Charlestown
Charlestown Place, Finglas, Dublin 11 Charlestown Property Details(1) Year Built: 2007 # of apartments owned: 235 Total # of apartments: 285 Valuation as at 30 June: €57.6m Passing rent as at 30 June: €3.6m (annualised) AMR per apartment as at 30 June: €1,268 Occupancy as at 30 June: 99.1% Commercia
Slide 31: 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 30 June: €5.5m Passing rent as at 30 June: €0.4m (annualised) AMR per apartment as at 30 June: €1,366 Occupancy as at 30 June: 100.0% Commerci
Slide 32: Coldcut Park
Coldcut Road, Clondalkin, Dublin 22 Coldcut Park Property Details(1) Year Built: 2012 # of apartments owned: 89 Total # of apartments: 93 Purchase price as at 31 Aug: €18.3m Passing rent as at 31 Aug: €1.45m (annualised) AMR per apartment as at 31 Aug: €1,353 Occupancy as at 31 Aug: 100.0% Commercia
Slide 33: 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 30 June: €59.5m Passing rent as at 30 June: €3.3m (annualised) AMR per apartment as at 30 June: €1,367 Occupancy as at 30 June: 95.0% Commercial Ar
Slide 34: 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 30 June: €20.4m Passing rent as at 30 June: €1.2m (annualised) AMR per apartment as at 30 June: €1,507 Occupancy as at 30 June: 96.9% Commercial A
Slide 35: 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 30 June: €18.7m Passing rent as at 30 June: 1.4m (annualised) AMR per apartment as at 30 June: €1,315 Occupancy as at 30 June: 98.8% Commercial
Slide 36: 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 30 June: €63.0m Passing rent as at 30 June: €3.8m (annualised) AMR per apartment as at 30 June: €1,423 Occupancy as at 30 June: 97.5% Commerci
Slide 37: 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: 102 Total # of apartments: 198 Valuation as at 30 June: €18.4m Passing rent as at 30 June: €1.5m (annualised) AMR per apartment as at 30 June: €1,093 Occupancy as at
Slide 38: 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 30 June: €27.4m Passing rent as at 30 June: €1.7m (annualised) AMR per apartment as at 30 June: €1,485 Occupancy as at 30 June: 97.5% Com
Slide 39: 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 30 June: €69.0m Passing rent as at 30 June: €3.5m (annualised) AMR per apartment as at 30 June: €1,530 Occupancy as at 30 June: 98.4% Com
Slide 40: 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 30 June: €83.1m Passing rent as at 30 June: €6.8m (annualised) AMR per apartment as at 30 June: €1,171 Occ
Slide 41: 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 30 June: €2.2m Passing rent as at 30 June: €0.1m (annualised) AMR per apartment as at 30 June: €1,506 Occupancy as at 30 June: 100.0% Comm
Slide 42: 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 30 June: €3.1m Passing rent as at 30 June: €0.3m (annualised) AMR per apartment as at 30 June: €1,197 Occupancy as at 30 June: 1
Slide 43: 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 30 June: €56.9m Passing rent as at 30 June: €3.0m (annualised) AMR per apartment as at 30 June: €2,638 Occupancy as at 30 June: 97.6% C
Slide 44: 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 30 June: €21.5m Passing rent as at 30 June: €1.5m (annualised) AMR per apartment as at 30 June: €1,399 Occupancy as at 30 Ju
Slide 45: Appendix
IRISH RESIDENTIAL PROPERTIES REIT plc INVESTOR PRESENTATION APPENDIX 2 45
Slide 46: 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 47: 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 48: 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 49: 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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