Irish Residential Properties Reit Plc · EURONEXT:IRES
Irish Residential Properties Reit — H1 2020 Earnings Presentation
26 slides from Irish Residential Properties Reit's earnings presentation, Aug 7, 2020
Slide 1: Irish Residential Properties REIT plc Interim Results - 30 June 2020
Irish Residential Properties REIT plc Interim Results - 30 June 2020 7 August 2020
Slide 2: Cautionary Statements
D I S C L AI M E R Cautionary Statements This presentation has been prepared by Irish Residential Properties REIT PLC (the “Company” or “I-RES”) for information purposes only. This presentation has been prepared in good faith but the information contained in it has not been independently verified an
Slide 3: Agenda
H1 2020 Highlights Financial Results Modern Assets Portfolio Continuing Growth Strategy ESG Outlook Appendix 2
Slide 4: H1 2020 Highlights
IRISH RESIDENTIAL PROPERTIES REIT plc H1 2020 Highlights 6 3
Slide 5: H1 2020 Highlights: Resilient Operating Performance during Covid-19
H1 2020 Highlights Resilient Operating Performance during Covid-19 June 2020 June 2019 Revenue from Investment Properties (€m) 37.4 27.8 Net Rental Income (€m) 29.6 22.7 Net Rental Income Margin (%) 79.2 81.6 Total Number of Residential Units 3,739 2,771 Overall Portfolio Occupancy Rate 97.9% 98.3%
Slide 6: H1 2020 Highlights: A Robust and Flexible Balance Sheet
H1 2020 Highlights A Robust and Flexible Balance sheet June 2020 Dec 2019 Total Property Value €1,362.6m €1,359.2m Net Asset Value €784.5m €810.2m EPRA NRV €842.6m €867.7m Basic NAV per share (cents per share) 150.4 155.3 Group Total Gearing 42.9% 40.8% Gross Yield at Fair Value 5.7% 5.6% Total Prop
Slide 7: Execution on Growth Strategy
Execution on Growth Strategy Hansfield Wood II Future Pipeline Significant Unit Growth over 12 Month Period Pre-purchase Transactions Project Merrion 69 Waterside Under construction by IRES Bakers Yard 61 Priorsgate 5 Total 66 Tallaght Cross West Planning Permission Granted Priorsgate (Bruce House)
Slide 8: IRES managing through Covid-19 uncertainty
IRES managing through Covid-19 uncertainty Robust Balance Diversified sources of funding Sheet Long-term laddered debt maturity ranging from 2024 to 2032, with average interest rate below 2.0% with Strong LTV of 42.9% below the 50% maximum allowed under the Irish REIT legislation Liquidity C
Slide 9: Financial Results
IRISH RESIDENTIAL PROPERTIES REIT plc Financial Results 6 8
Slide 10: Financial Results H1 2020
Financial Results H1 2020 Operating Performance Commentary • c. 30.2% increase in Net Rental Income Period ended 30 June 2020 2020 2019 Revenue from Investment Properties (€m) 37.4 27.8 • EPRA Earnings adjusted for non-recurring expenses increased 19% to €18.2m (June 2019: €15.3m) Net Rental Income
Slide 11: Strong Balance Sheet
Financial Results 2020 Strong Balance Sheet June 2020 Dec 2019 Number of Units 3,739 3,666 Total Property Value €1,362.6m €1,359.2m Commentary EPRA Net Reinstated Value (cents per share) 160.8 165.4 • Basic NAV per share decreased by 3.2%,as a result of property valuation decreases and dividends pai
Slide 12: Modern Assets Portfolio
IRISH RESIDENTIAL PROPERTIES REIT plc Modern Assets Portfolio 6 11
Slide 13: Modern asset base, with strong occupancy levels, supported by competitive rental levels
Modern asset base, with strong occupancy levels, supported by competitive rental levels demonstrates the resilience of the portfolio Distribution by Split of Distribution by Average Properties by Distribution by Age Bedrooms(1) Monthly Rent(1) Location(1) (Years) (1) 1% 1% 1% 5% 1% 6% 2% 8% 12% 1% 3
Slide 14: Large Asset Base Primarily Located Across Dublin
Large Asset Base Primarily Located Across Dublin Key Highlights Portfolio Overview (including all committed forward purchases) Units 36 37 39 South Dublin 01 Beacon South Quarter 225 38 02 Grande Central 65 03 Rockbrook Grande Central 81 30 31 33 Portfolio to reach 3,964(1) units 04 Rockbrook South
Slide 15: Continuing Growth Strategy
IRISH RESIDENTIAL PROPERTIES REIT plc Continuing Growth Strategy 6 14
Slide 16: Demand drivers are strong against increasing supply constraints
Demand drivers are strong against increasing supply constraints Population growth forecast3 Largest Proportion of 25 - 44 year olds in the EU Significant supply demand imbalances persists, exacerbated by Covid-19 Strong population growth driven by the highest birth rate in Europe and inward migratio
Slide 17: I-RES REIT Growth Strategy continues to provide flexibility
I•RES REIT Growth Strategy continues to provide flexibility Multi-Channel Growth Strategy to Deliver Sustainable Long-Term Growth 1 2 3 Acquisition of Development Development Completed Assets Partnerships of Existing I•RES Properties • Continued evaluation of new • Forward purchase agreements • Oppo
Slide 18: ESG
IRISH RESIDENTIAL PROPERTIES REIT plc ESG 17
Slide 19: ESG is Central to IRES' Strategy
ESG is Central to IRES’ Strategy Key Highlights H1 2020 ESG Framework Overview We initiated our inaugural Global Real Estate Sustainability Benchmark (GRESB) submission process, the results of which will underpin the development of our ESG strategy going forward We provided residential homes at
Slide 20: Outlook
IRISH RESIDENTIAL PROPERTIES REIT plc Outlook 19
Slide 21: I-RES REIT - Key Investment Attractions
I•RES REIT - Key Investment Attractions Why the Irish Multifamily Sector Economy underpinned by Strong FDI Flow, Favourable Scarcity of professionally Societal shifts towards long Dublin offers higher yields Population Demographics Structural Supply Demand managed, high quality rental on multifamily
Slide 22: A Place to Call Home
A Place to Call Home 2018 Annual Shareholders’ Meeting Irish Residential Properties REIT plc 17 21
Slide 23: Appendix
IRISH RESIDENTIAL PROPERTIES REIT plc Appendix 6 22
Slide 24: Large apartment size suitable for working from home
Large apartment size suitable for working from home Rent Commercial Number of Number of Average Rent Occupancy Region (€/ Space Owned Buildings Units (1) per Month (1) (2) rate % (1) (2) sqm/month) (sq. m.) (1) South Dublin 11 1,074 €1,761 €22.6 98.0% 6,854 City Centre 9 455 €1,565 €21.2 91.0% 2,734
Slide 25: Significant government stimulus for economic and social challenges presented by Covid
Significant government stimulus for economic and social challenges presented by Covid • Formation of a new coalition government on 27 June, including Fianna Fail, Fine Gael and the Green Party • Housing is a central tenet of the government, over the next 5 years the government plans to increase the
Slide 26: 25
25
Irish Residential Properties REIT — H1 2020 Earnings Presentation on 6ix