Irish Residential Properties Reit Plc · EURONEXT:IRES

Irish Residential Properties Reit — Corporate Update (January 2015)

40 slides from Irish Residential Properties Reit's corporate update, January 2015

  1. Slide 1: Irish Residential Properties REIT Plc Company Update

    PRIVATE & CONFIDENTIAL IRISH RESIDENTIAL PROPERTIES REIT PLC COMPANY UPDATE January 2015

  2. Slide 2: Disclaimer/Notice to Recipients

    DISCLAIMER/NOTICE TO RECIPIENTS This presentation has been prepared by Irish Residential Properties REIT PLC (the “Company”) for information purposes only. This presentation has been prepared in good faith but the information contained in it has not been independently verified and does not purport t

  3. Slide 3: Achievements Since the April Initial Offering

    ACHIEVEMENTS SINCE THE APRIL INITIAL OFFERING  Proceeds from initial offering fully invested by October 2014  Acquired a further 866 suites and raised €130m of debt capital(1)  Acquired income producing assets with low vacancies  Platform of 16 staff present on the ground in Ireland (2,3)  Init

  4. Slide 4: The I-RES Business Model: Multi-Residential Properties in Ireland

    THE I•RES BUSINESS MODEL: MULTI-RESIDENTIAL PROPERTIES IN IRELAND Camac Crescent | Inchicore, Dublin 8 3

  5. Slide 5: I-RES Benefits from Scale Effects and the Local CAPREIT Platform

    I•RES BENEFITS FROM SCALE EFFECTS AND FROM THE LOCAL CAPREIT PLATFORM  Team of 16 individuals(1) dedicated to the I•RES portfolio employed by IRES Fund Management Ltd (“IRES Fund”), a subsidiary of CAPREIT  Charles Coyle and Dan Mack leading the Dublin platform with support from the CAPREIT team b

  6. Slide 6: Experienced and Knowledgeable Leadership Team

    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 industry in Canada, including the forma

  7. Slide 7: CAPREIT Is an Experienced Residential Property Investor

    CAPREIT IS AN EXPERIENCED RESIDENTIAL PROPERTY INVESTOR  CAPREIT founded in 1997, one of the first Canadian REITs S&P/TSX Index & CAPREIT total return(1)  Approx. C$5.8 billion in total assets(1) 1000%  41,555 residential suites(1) coast-to-coast in Canada 812%  812% total return(2) to sharehold

  8. Slide 8: Significant Growth Opportunities in the Irish Residential Property Segment

    SIGNIFICANT GROWTH OPPORTUNITIES IN THE IRISH RESIDENTIAL PROPERTY SEGMENT  €19.6 billion of property assets as of 31 December 2013, with €7.5 billion located in Dublin and €3.5 billion outside Dublin  20% of the Dublin property assets were residential properties compared to 15% for the NAMA rest

  9. Slide 9: Two Residential Portfolios Currently Marketed by NAMA

    TWO RESIDENTIAL PORTFOLIOS CURRENTLY MARKETED BY NAMA Portfolio Rockbrook Plum Status  CAPREIT LP purchaser under contract  Currently being marketed  Stillorgan  Sandyford  Malahide Location  Sandyford  Santry  Clongriffin  Dublin City  270 suites, of which # of suites  81 in Grande Centr

  10. Slide 10: CAPREIT LP Agreed to Acquire and Hold Properties on Behalf of I-RES

    CAPREIT LP AGREED TO ACQUIRE AND HOLD PROPERTIES ON BEHALF OF I•RES  On 21 November 2014 I•RES entered into a pipeline agreement (“the Pipeline Agreement”) with CAPREIT Limited Partnership (“CAPREIT LP”) in order to permit it to participate in forthcoming sales processes where I•RES has insufficien

  11. Slide 11: Proven Underwriting Acquisition Capabilities

    PROVEN UNDERWRITING ACQUISITION CAPABILITIES  Based on reports prepared by quantity surveyors, architects and engineers in respect of Beacon South Quarter, IRES acquired Beacon South Quarter for a purchase price per unit equal to approximately 70% of the estimated replacement cost Beacon South Quar

  12. Slide 12: I-RES Strives to Be the Residential Landlord of Choice in Ireland

    I•RES STRIVES TO BE THE RESIDENTIAL LANDLORD OF CHOICE IN IRELAND I•RES strives for excellence based on four pillars Professional property Good relationships Attention to maintenance Responsive to tenants management with tenants Solid organic growth with increases in rental income from renewals and

  13. Slide 13: Solid Progress Since the April Initial Offering

    SOLID PROGRESS SINCE SINCE THE APRIL INITIAL OFFERING Camac Crescent | Inchicore, Dublin 8 12

  14. Slide 14: Strong Operating Performance

    STRONG OPERATING PERFORMANCE Snapshot 30 September 2014 for the total portfolio Occupancy rate(1) c. 99% NOI margin(2) c. 80% Note: (1) Based on number of units occupied. (2) Net operating income margin for the month of September 2014. 13

  15. Slide 15: Strong Asset Management Track Record

    STRONG ASSET MANAGEMENT TRACK RECORD Operating performance since acquisition Average monthly rent Occupancy NOI margin Initial Portfolio Initial Portfolio €1,097 99.7% c. 80% currently(2) €900 93.0% c. 77% since July 2013(1) 71% Initial Portfolio Initial Portfolio Initial Total Portfolio Portfolio I

  16. Slide 16: Financing Strategy

    FINANCING STRATEGY Currently  €130 million bridge & revolver loan signed with Barclays Bank Ireland Plc and Toronto Dominion Bank − €125 million drawn down to finance the acquisition of the Orange portfolio Long term financing strategy  I•RES intends to mortgage individual properties not to exceed

  17. Slide 17: The Irish Economic and Real Estate Recovery

    THE IRISH ECONOMIC AND REAL ESTATE RECOVERY Grande Central | Sandyford, Dublin 18 16

  18. Slide 18: FDI Inflows Remains Strong

    FDI INFLOWS REMAINS STRONG Ireland’s performance as a hub for FDIs is unrivalled… 1st in the Eurozone 1st in the world 1st in the world for ease of doing business for availability of skilled labour for inward investment by quality and value 1st in the world In the top 20 for investment incentives mo

  19. Slide 19: Tailwind Supports Ireland's Recovery

    TAILWIND SUPPORTS IRELAND’S RECOVERY GNP growth has returned in positive territory Unemployment is dropping 2,500 16.0% 15.0% 9.3% 8.0% 14.0% 7.4% 6.7% 10.0% 2,000 5.4% 4.2% 4.2% 3.8% 12.0% 3.8% 3.3% 3.2% 2.1% 2.0% 1.7% 1.7% (2.3%) 10.0% (9.0%) (0.9%) 5.0% 1,500 8.0% 0.0% 1,000 6.0% (5.0%) 4.0% 500

  20. Slide 20: Positive Trends Support Residential Capital Values

    POSITIVE TRENDS SUPPORT RESIDENTIAL CAPITAL VALUES The renting model is gaining momentum Housing prices are recovering (Share of renting vs. home ownership) (€000s) 100% 140 130 80% 120 110 60% 100 90 80 40% 70 29.8% 30.4% 60 20% 22.7% 26.3% 26.7% 18.2% 21.8% 22.0% 21.9% 50 Mrz 13 Mrz 14 Jan 05 Jun

  21. Slide 21: Strong Rental Rate Momentum Supports Cash Flow Generation

    STRONG RENTAL RATE MOMENTUM SUPPORTS CASH FLOW GENERATION Strong YoY rental Rental rates …and are still affordable rates increases in Q2 2014 are recovering… (YoY % rental growth) (€ per unit per month) (% of households earnings, for Ireland) 36% 16% 1,300 % Earnings spent in rent 14% 34% 12% 1,100

  22. Slide 22: Continued Shortage of Housing Supply Helps Support the Rental Market

    CONTINUED SHORTAGE OF HOUSING SUPPLY HELPS SUPPORT THE RENTAL MARKET Housing required Housing required 2011–2021 2011–2021 Housing starts Housing starts 2013 2013(1) 18,000 8,000 annually annually >4,500 838 Ireland Dublin Source: Economic and Social Research Institute, Construction Industry Federat

  23. Slide 23: Overview of the Existing Portfolio

    OVERVIEW OF THE EXISTING PORTFOLIO The Marker Residences | Docklands, Dublin 2 22

  24. Slide 24: I-RES Has Built Up a Portfolio of High Quality Dublin Residential Properties

    I•RES HAS BUILT UP A PORTFOLIO OF HIGH QUALITY DUBLIN RESIDENTIAL PROPERTIES Commercial Property Year Date space owned Average monthly Location Location Built Acquired # suites owned(1) Total # of suites(1) (sqm)(1) rent per suite(1) Occupancy(1) 1 Kings Court Smithfield 2006 10 Sep 2013 83 83 566 €

  25. Slide 25: Existing Portfolio Locations Are Clustered Around Dublin

    EXISTING PORTFOLIO LOCATIONS ARE CLUSTERED AROUND DUBLIN Charlestown Camac Crescent 235 suites Kings Court 90 suites 83 suites Lansdowne Gate Bakers Yard 224 suites 85 suites The Laurels The Marker 19 suites 84 suites Priorsgate Beacon South Quarter Grande Central 102 suites 217 suites 65 suites Map

  26. Slide 26: Corporate Governance

    CORPORATE GOVERNANCE Kings Court | Smithfield, Dublin 7 25

  27. Slide 27: Management Arrangements Summary

    MANAGEMENT ARRANGEMENTS SUMMARY  IRES Fund is a wholly owned indirect subsidiary of CAPREIT appointed under the IMA to govern the provision Investment of investment management and related services to I•RES Management  Supported by CAPREIT’s staff, platform and infrastructure through the Services A

  28. Slide 28: Strong Majority Independent Board

    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 with international experience previous

  29. Slide 29: I-RES Property Portfolio

    I•RES PROPERTY PORTFOLIO Kings Court | Smithfield, Dublin 7 28

  30. Slide 30: Property Summary: Kings Court

    PROPERTY SUMMARY: KINGS COURT North King Street, Smithfield, Dublin 7 Property details(1) Year Built: 2006 # of suites owned: 83 Total # of suites: 83 Passing rent as at 30 September: €1.2m (annualized) AMR per suite as at 30 September: €1,152 Occupancy as at 30 September: 100.0% Commercial Area: 56

  31. Slide 31: Property Summary: Grande Central

    PROPERTY SUMMARY: GRANDE CENTRAL Rockbrook, Sandyford , Dublin 18 Property details(1) Year Built: 2007 2008/2009 Suites: # of suites owned: 63 65 Passing Total # ofrent suites: as at 30 September: €1.0m (annualized) 195 AMR perrent Passing suiteasasatat3030September: September: €1,339(annualized) €1

  32. Slide 32: Property Summary: Priorsgate

    PROPERTY SUMMARY: PRIORSGATE Greenhills Road, Tallaght, Dublin 24 Property details(1) Year Built: 2007 # of suites owned: 102 Total # of suites: 198 Passing rent as at 30 September: €1.3m (annualized) AMR per suite as at 30 September: €902 Occupancy as at 30 September: 99.0% Commercial Area: 2,568sq

  33. Slide 33: Property Summary: Camac Crescent

    PROPERTY SUMMARY: CAMAC CRESCENT Turvey Avenue, Inchicore, Dublin 8 Property details(1) Year Built: 2008 Suites: # of suites owned: 90 Passing Total # ofrent suites: as at 30 September: €1.2m (annualized) 110 AMR perrent Passing suiteasasatat3030September: September: €1,063(annualized) €1.2m Occupan

  34. Slide 34: Property Summary: The Laurels

    PROPERTY SUMMARY: THE LAURELS Main Street, Tallaght, Dublin 24 Property details(1) Year Built: 2007 # of suites owned: 19 Total # of suites: 19 Passing rent as at 30 September: €0.2m (annualized) AMR per suite as at 30 September: €992 Occupancy as at 30 September: 100.0% Commercial Area: 190 sqm (2,

  35. Slide 35: Property Summary: The Marker

    PROPERTY SUMMARY: THE MARKER Grand Canal Square, Docklands, Dublin, Dublin 2 Property details(1) Year Built: 2012 # of suites owned: 84 Total # of suites: 102 Passing rent as at 30 September: €2.4m (annualized) AMR per suite as at 30 September: €2,129 Occupancy as at 30 September: 96.4% Commercial A

  36. Slide 36: Property Summary: Beacon South Quarter

    PROPERTY SUMMARY: BEACON SOUTH QUARTER Beacon South Quarter, Sandyford, Dublin 18 Property details(1) Year Built: 2007/2008 # of suites owned: 217 Total # of suites: 850 Passing rent as at 07 October: €3.5m (annualized) AMR per suite as at 07 October: €1,329 Occupancy as at 07 October: 99.1% Commerc

  37. Slide 37: Property Summary: Charlestown

    PROPERTY SUMMARY: CHARLESTOWN Charlestown Place, Finglas, Dublin 11 Property details(1) Year Built: 2007 # of suites owned: 235 Total # of suites: 285 Passing rent as at 07 October: €3.0m (annualized) AMR per suite as at 07 October: €1,083 Occupancy as at 07 October: 99.1% Commercial Area: n/a Suite

  38. Slide 38: Property Summary: Bakers Yard

    PROPERTY SUMMARY: BAKERS YARD North Portland Street, Dublin, Dublin 1 Property details(1) Year Built: 2007/2008 # of suites owned: 85 Total # of suites: 132 Passing rent as at 07 October: €1.2m (annualized) AMR per suite as at 07 October: €1,128 Occupancy as at 07 October: 97.6% Commercial Area: 792

  39. Slide 39: Property Summary: Lansdowne Gate

    PROPERTY SUMMARY: LANSDOWNE GATE Lansdowne Gate, Drimnagh, Dublin 12 Property details(1) Year Built: 2005 # of suites owned: 224 Total # of suites: 280 Passing rent as at 07 October: €3.0m (annualized) AMR per suite as at 07 October: €1,120 Occupancy as at 07 October: 96.9% Commercial Area: n/a Suit

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