Irish Residential Properties Reit Plc · EURONEXT:IRES
Irish Residential Properties Reit — H1 2024 Earnings Presentation
26 slides from Irish Residential Properties Reit's earnings presentation, August 2024
Slide 1: Irish Residential Properties REIT Plc 2024 Interim Results Presentation
Irish Residential Properties REIT Plc 2024 Interim Results Presentation Six Months to 30 June 2024
Slide 2: Disclaimer
Disclaimer Important Information No Profit Forecast / Asset Valuations Due to various risks and uncertainties, actual events or results or This presentation has been prepared by Irish Residential No statement in this presentation is intended to constitute a actual performance of the Company may diff
Slide 3: Presentation Agenda
Presentation Agenda Overview & Strategic Review Eddie Byrne, CEO Financial Performance & Portfolio Overview Brian Fagan, CFO Regulatory Landscape Eddie Byrne, CEO Sustainability Eddie Byrne, CEO Outlook Eddie Byrne, CEO I-RES REIT Plc | 2024 Interim Results Presentation | August 2024 3
Slide 4: Overview & Strategic Review
Overview & Strategic Review Eddie Byrne, CEO 4
Slide 5: What attracted me to I-RES?
Overview What attracted me to I-RES? - Eddie Byrne, appointed CEO in May 2024 Immense opportunity, strong capabilities, compelling outlook Strengths & Opportunities Focus in first 3 months (May – July) Attractive market dynamics • Exceptional demand • Diminishing supply • Reduction in quantity of PR
Slide 6: H1 2024 – Strong operational start to the year
Overview H1 2024 – Strong operational start to the year Our Strategic Vision Highly predictable and cash generative business To be the provider of choice for the Irish PRS sector, known for excellent model with the ability to generate attractive returns service and for operating responsibly, minimis
Slide 7: Completion of rigorous and comprehensive Strategic Review
Strategic Review Completion of rigorous and comprehensive Strategic Review Initiatives which the Board believe will drive Further Findings Background value maximisation in the medium-term • Rigorous and comprehensive • Initiating a programme to drive value accretion and improve portfolio Strategic R
Slide 8: Initiation of capital recycling programme
Strategic Review Initiation of capital recycling programme Criteria for identifying suitable assets: c. 315 suitable units identified for disposal • Disposals expected to generate approximately €110 - €115 million1 of proceeds over a 3 to 5 year period Degree of control within the property • Timing
Slide 9: Significant opportunity exists in the Irish PRS market
Strategic Review Significant opportunity exists in the Irish PRS market Greater Dublin area PRS Market I-RES is well placed to act as a consolidator in the market Pension & Private Insurance Micro Landlords: Institutional Equity & Landlords: Funds c. 100,000 units Closed End c. 25,000 units Funds I-
Slide 10: Market leading operating platform which is unique in the Irish market
Strategic Review Market leading operating platform which is unique in the Irish market Property Leasing Property Asset Mgmt IT Finance Legal HR Corporate Maintenance Co-Ordinators Managers Vertically integrated and fully internalised operating platform Occupancy Reduced bad debts People Increased by
Slide 11: Financial Performance & Portfolio Overview
Financial Performance & Portfolio Overview Brian Fagan, CFO 11
Slide 12: Resilient underlying financial performance Underpinned by Continued Operational Excellence
Financial Performance & Portfolio Overview Resilient underlying financial performance Underpinned by Continued Operational Excellence Like-for-like Revenue growth*: +2.1% Like-for-like NRI growth*: +1.9% Exceptional Occupancy Track Record Proposed 2024 Interim Dividend of 1.88 cents per share 99.6%
Slide 13: Balance sheet – investment properties valuation
Financial Performance & Portfolio Overview Balance sheet – investment properties valuation Balance Sheet 30 June 2024 31 December 2023 • A continued higher interest rate environment and low residential transaction volumes have resulted in modest yield expansion during the first half of the year Tota
Slide 14: Financial position remains robust with excellent visibility
Financial Performance & Portfolio Overview Financial position remains robust with excellent visibility Total Borrowings: €573m RCF Drawn 30 June 2024 31 December 2023 €98m Variable Interest Cost plus margin Gross Yield 7.0% 6.7% RCF Drawn EPRA NIY 5.1% 4.9% €275m Fixed 2.5% Cost of interest (average
Slide 15: Capital allocation priorities
Financial Performance & Portfolio Overview Capital allocation priorities Highly cash generative Proactive asset recycling business model programme of up to c. 315 units Investing in growth Protecting the business and preserving optionality Retaining flexibility for initiatives that are accretive to
Slide 16: Modern portfolio with strong performance metrics
Financial Performance & Portfolio Overview Modern portfolio with strong performance metrics Property Portfolio Performance 30 June 2024 31 December 2023 Annualised Passing Rent (€’000)1 86,354 85,288 % commercial 6 5 Portfolio Occupancy Rate, % 99.6% 99.4% Portfolio Average Monthly Rent2 (€) €1,796
Slide 17: Regulatory Landscape
Regulatory Landscape Eddie Byrne, CEO 17
Slide 18: Regulatory landscape remains a key challenge, but there has been a shift in tone
Regulation Regulatory landscape remains a key challenge, but there has been a shift in tone from policy makers Consensus is emerging that reform to the current regulatory system is required Availability, Composition, and Flow of Finance PRS Sector Review Report of the Housing Commission for Resident
Slide 19: Sustainability
Sustainability Eddie Byrne, CEO 19
Slide 20: Building a sustainable and responsible business
Sustainability Building a sustainable and responsible business Pillars of the I-RES ESG Strategy • 90% Employee satisfaction rate • Gold Award for EPRA Sustainability Best Practices Recommendations. • Board Director with responsibility for Operating Responsibly Workforce Engagement and Culture • Inc
Slide 21: Outlook
x ° fe) r=) > 12) Eddie Byrne, CEO 21
Slide 22: Positive outlook with focus on implementing the Strategic Review initiatives
Outlook Positive outlook with focus on implementing the Strategic Review initiatives Focus Areas Implementation of Strategic Review Resilient & Cash Unique Operating Initiatives Generative Business Platform Systematic and continuous portfolio management Significant engagement with policy makers ahea
Slide 23: Appendix
Appendix 23
Slide 24: Market fundamentals remain exceptionally strong
Market Fundamentals Market fundamentals remain exceptionally strong Irish Population Growth Forecast to Continue Forecast 6.5 120,000 Millions 6.0 100,000 • Ireland has a rapidly growing population, with the population projected to reach over 5.5 80,000 6.3 million people by 2050*. 5.0 60,000 4.5 40
Slide 25: Ireland remains a compelling location for investment
Market Fundamentals Ireland remains a compelling location for investment Additional Pull Factors Unemployment rate remains close to all-time lows % 12 10 8 6.4%* 6 Only English-speaking 4 Highly Educated Workforce country in the EU 4.2% 2 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 June 2024 I
Slide 26: Thank you for your time
Thank you for your time For more information please visit: www.iresreit.ie/investors SouthXW94 Hanover DO2 www.i-res.ie Ireland Dock Quay House South Dock House Hanover Quay DO2 XW94 Ireland www.i-res.ie
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