Irish Residential Properties Reit Plc · EURONEXT:IRES
Irish Residential Properties Reit — FY2023 Earnings Presentation
23 slides from Irish Residential Properties Reit's earnings presentation, Feb 23, 2024
Slide 1: 2023 Results Presentation
Sustainable Business, Connected Communities Irish Residential Properties REIT Plc 2023 Results Presentation Twelve Months to 31 December 2023 1
Slide 2: Disclaimer
Disclaimer Important Information No Profit Forecast / Asset Valuations This presentation has been prepared by Irish Residential No statement in this presentation is intended to constitute a profit Due to various risks and uncertainties, actual events or results or Properties REIT PLC (the “Company”
Slide 3: Contents
Contents 1. Delivery of 2023 Strategic Objectives 2. I-RES Strategic Review 3. Financial Performance & Asset Portfolio 4. Sustainability & ESG 5. Market Fundamentals 6. Summary 3
Slide 4: Delivery of 2023 Strategic Objectives
1 Delivery of 2023 Strategic Objectives 4
Slide 5: Continued Delivery on Strategic Objectives During 2023
Delivery of 2023 Strategic Objectives Continued Delivery on Strategic Objectives During 2023 Operational Excellence Asset Management Capital Management Sustainability Maintenance of robust balance sheet, with Further progress achieved in reduction of Continued market leading occupancy Successful del
Slide 6: Market Leading, Customer Facing, Fully Digitalised Operating Platform
Delivery of 2023 Strategic Objectives Market Leading, Customer Facing, Fully Digitalised Operating Platform Technology ↑ Post internalisation, invested in the creation of a vertically integrated, fully digitalised operating platform ↑ Result: enhanced collection rates, improved service delivery, and
Slide 7: I-RES Strategic Review
2 I-RES Strategic Review 7 7
Slide 8: Launch of I-RES Strategic Review
I-RES Strategic Review Launch of I-RES Strategic Review Commencement of Strategic Review Why Launch a Strategic Review Now? As previously announced on the 8th January 2024, the IRES Board is today commencing a Strategic Review which will explore and consider all strategic options available to maximi
Slide 9: Financial Performance and Asset Portfolio
3 Financial Performance and Asset Portfolio 9 9
Slide 10: Strong & Resilient Financial Performance
Financial Performance & Asset Portfolio Underpinned By Consistent Strong & Resilient Financial Performance Operational Excellence For the twelve months ended 31 Dec 2023 31 Dec 2022 % change 99.1% 99.4% 99.4% Income Statement (€m) 79.1% 77.5% 77.3% Revenue 87.9 84.9 3.5% Net Rental Income 67.9 65.
Slide 11: Successful Execution of Asset Disposal Programme
Financial Performance & Asset Portfolio Successful Execution of Asset Disposal Programme Asset Disposal Summary • Selective asset disposal programme successfully executed in 2023, reflecting pro-active capital management and continued maintenance of a robust €96.5m 1 financial position • Assets sold
Slide 12: Robust Balance Sheet Strengthened by Asset Disposals
Financial Performance & Asset Portfolio Robust Balance Sheet Strengthened by Asset Disposals No debt maturities before April 2026 with repayments laddered out to 2032 €644m RCF Drawn €573m 31 December 2023 31 December 2022 €169m RCF Drawn Variable Interest Cost €98m Gross Yield 6.7% 5.9% plus margin
Slide 13: Balance Sheet – Investment Properties Valuation
Financial Performance & Asset Portfolio Balance Sheet – Investment Properties Valuation EPRA NTA per share (cents) Non-cash • Accelerated interest rate increases and low transaction volume has resulted in market yield expansion, as indicated by our independent valuers. • This has resulted in a yield
Slide 14: Modern Portfolio With Strong Income and Operating Metrics
Financial Performance & Asset Portfolio Modern Portfolio With Strong Income and Operating Metrics Sustainability is a top priority across our portfolio Modern Portfolio With Affordable Rents In Attractive Locations Average age of 14.9 years Average monthly rent of €1,774 3% 6% 5% 1% 90% 11% 23% 30%
Slide 15: Sustainability & ESG
4 Sustainability & ESG 15 15
Slide 16: Continued Progress on ESG Strategy
Sustainability & ESG Continued Progress on ESG Strategy Maintaining the Highest Levels of Transparency & Disclosure Agencies 2023 2022 Social Impact Initiatives EPRA Gold Gold Annual resident survey completed with 1,300+ respondents; continuously Sustainability Best Practice Recommendations high sat
Slide 17: Building a Sustainable and Responsible Business
Sustainability & ESG Building a Sustainable and Responsible Business Protecting the Building Operating Environment Communities Responsibly ↓ 59% Scope 1 GHG Emissions reduction (like for like) (-41% in 2022) Employee gender diversity Employee satisfaction rate 44% Achieved Investors in Diversity ↓ 0
Slide 18: Market Fundamentals
5 Market Fundamentals 18 18
Slide 19: Demand Fundamentals Continue to Remain Strong
Market Fundamentals Demand Fundamentals Continue to Remain Strong Irish GDP growth expected to outperform EU average in 2024 & 2025 Irish unemployment rate remains close to all-time lows Source: CSO, Eurostat Source: European Commission % 16 2024 GDP Forecast: Winter 2024 Economic Forecast 4 • Irela
Slide 20: Irish Multifamily Sector: Supply Continues to Lag Demand
Market Fundamentals Irish Multifamily Sector: Supply Continues to Lag Demand Irish Population Growth Forecast to Continue Source: CSO; UN Population Average Monthly Rents in Dublin Continue to Grow Growth Forecasts Standardised Average Monthly Rent in new tenancies in Dublin at Q3 2023 was €2,113 (u
Slide 21: Summary
6 Summary 21 21
Slide 22: Driving Success: Operational Excellence, Capital Efficiency, I-RES Strategic Review
Summary Driving Success: Operational Excellence, Capital Efficiency, I-RES Strategic Review Operational excellence Asset Management Capital Management Market-wide supply-demand imbalance coupled with best- Modern portfolio with an average age of 14.9 years and 83% of drawn debt hedged at a blended i
Slide 23: Thank you for your time
Thank you for your time For more information please visit: www.iresreit.ie/investors South Dock House Hanover Quay DO2 XW94 Ireland www.i-res.ie I-RES REIT Plc | FY 23 Results Presentation | February 2023 23 23
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