Irish Residential Properties Reit Plc · EURONEXT:IRES
Irish Residential Properties Reit — H1 2021 Earnings Presentation
29 slides from Irish Residential Properties Reit's earnings presentation, Aug 6, 2021
Slide 1: Interim Results Presentation: Six Months to 30 June 2021
Irish Residential Properties REIT plc Interim Results Presentation SIX MONTHS TO 30 JUNE 2021 Building Communities & Creating Value 1
Slide 2: Disclaimer
DISCLAIMER Cautionary Statements of this presentation or its contents or otherwise arising in To the extent indicated, certain industry, market and This presentation has been prepared by Irish Residential connection with this presentation. Certain financial and competitive position data contained in
Slide 3: Agenda
ELMPARK GREEN | DUBLIN 4 AGENDA 1 Highlights 2 Financial Results 3 Portfolio 4 Investment Management Agreement Update 5 Sustainability & ESG 6 Markets 7 Outlook IRES REIT PLC l INTERIM RESULTS PRESENTATION l AUGUST 2021 3
Slide 4: Highlights: Strong Operational Performance and Positioned for Future Growth
HIGHLIGHTS STRONG OPERATIONAL PERFORMANCE AND POSITIONED FOR FUTURE GROWTH Attractive portfolio delivering Strong Irish Operating environment supportive sustainable long-term returns economic fundamentals of future growth › Strong profit growth driven by rotation of › Covid-19 restrictions easing an
Slide 5: Financial Highlights: Strong Performance in H1 2021
FINANCIAL HIGHLIGHTS STRONG PERFORMANCE IN H1 2021 (6M) › Occupancy remains robust at 98.6% across the Revenue from Investment Properties Total Property Value residential portfolio (30 June 2020: 97.9%) Revenue growth principally driven by Growth through acquisitions, investment in new properties re
Slide 6: Agenda
PHOENIX PARK RACECOURSE | DUBLIN 15 AGENDA 1 Highlights 2 Financial Results 3 Portfolio 4 Investment Management Agreement Update 5 Sustainability & ESG 6 Markets 7 Outlook IRES REIT PLC l INTERIM RESULTS PRESENTATION l AUGUST 2021 6
Slide 7: Financial Results: Investment and Operational Excellence Delivering Strong Results
FINANCIAL RESULTS INVESTMENT AND OPERATIONAL EXCELLENCE DELIVERING STRONG RESULTS 30 June 30 June For the six months ended 2021 2020 % change › 5.9% increase in Net Rental Income Income Statement (€m) principally driven by investment in new Revenue from Investment Properties 39.4 37.4 ▲5.5% properti
Slide 8: Financial Results: Continued Execution of Growth Strategy and Gain in Portfolio Value
FINANCIAL RESULTS CONTINUED EXECUTION OF GROWTH STRATEGY AND GAIN IN PORTFOLIO VALUE 30 June 31 December % EPRA NTA PER SHARE As at 2021 2020 change € cents per share Balance Sheet Total Property Value (€m) 1,457.5 1,380.4 ▲5.6% Net Asset Value (€m) 855.0 841.7 ▲1.6% IFRS NAV per share (cents) 161.9
Slide 9: Financial Results: Property Valuation
FINANCIAL RESULTS PROPERTY VALUATION PROPERTY VALUE 30 June 31 December As at Equivalent Yield1 Equivalent Yield1 € millions 2021 2020 Valuation MAX MIN WA MAX MIN WA Investment 1,421.5 5.47% 3.86% 4.59% 1,346.7 5.62% 3.75% 4.66% properties (€m) Properties under 11.2 4.25% 4.25% 4.25% 8.9 4.25% 4.25
Slide 10: Financial Results: Strong Balance Sheet and Liquidity Enabling Growth
FINANCIAL RESULTS STRONG BALANCE SHEET AND LIQUIDITY ENABLING GROWTH Balance at Available Interest Maturity 30.06.2021 Facility cost Funding €m €m % per annum Base Extended 272 123 1.751 Apr-24 Apr-25 Revolving Credit Facility 141 64 1.751 Apr-24 - Private Placement Notes 2002 - 1.923 2027-2032 - To
Slide 11: Agenda
MERRION ROAD | DUBLIN 4 JULY 2021 AGENDA 1 Highlights 2 Financial Results 3 Portfolio 4 Investment Management Agreement Update 5 Sustainability & ESG 6 Markets 7 Outlook IRES REIT PLC l INTERIM RESULTS PRESENTATION l AUGUST 2021 11
Slide 12: Portfolio: Modern Portfolio with Strong Operating Metrics
PORTFOLIO MODERN PORTFOLIO WITH STRONG OPERATING METRICS 30 June 31 December % change 2021 2020 Young modern portfolio, 12% 4% <2 11% average age of 12 years3 2 to 4 Portfolio Performance 7% 5 to 7 Annualised Passing Rent (€’000) 78,315 74,744 ▲4.8% AGE 6% 8 to 10 11 to 13 % commercial 4.0 3.6 60% 1
Slide 13: Portfolio: Continuing Value Creation and Proactive Asset Management
PORTFOLIO CONTINUING VALUE CREATION AND PROACTIVE ASSET MANAGEMENT PORTFOLIO BUILD-UP Pipeline for growth of c.18% SUSTAINABLE PROACTIVE ASSET MANAGEMENT ACCRETIVE › Contracted a 25 year lease with an approved housing ACQUISITION GROWTH body for 128 units at Hampton Wood1 DISPOSAL TOTAL STRATEGY › D
Slide 14: Portfolio: Unit Growth Driving Value
PORTFOLIO UNIT GROWTH DRIVING VALUE ACQUISITIONS DEVELOPMENT IN PROGRESS FORWARD PURCHASE IN PROGRESS M50 Phoenix Park Racecourse, Dublin 15 M50 Bakers Yard, Dublin City Centre Merrion Road, Dublin 4 M50 › 146 units, adjacent to the Phoenix Park, › 61 units, designed to LEED Gold standard › 69 units
Slide 15: Agenda
BAKERS YARD | DUBLIN 1 APRIL 2021 AGENDA 1 Highlights 2 Financial Results 3 Portfolio 4 Investment Management Agreement Update 5 Sustainability & ESG 6 Markets 7 Outlook IRES REIT PLC l INTERIM RESULTS PRESENTATION l AUGUST 2021 15
Slide 16: IMA Update: Internalisation of Management of IRES
IMA UPDATE INTERNALISATION OF MANAGEMENT OF IRES › On 31 March 2021, IRES received a 12 months’ notice of Benefits of Internalisation termination of the IMA from the Manager Elimination of asset management and property management fees › On 5 August 2021, the Company has served a notice of terminatio
Slide 17: Agenda
TYRONE COURT | DUBLIN 8 AGENDA 1 Highlights 2 Financial Results 3 Portfolio 4 Investment Management Agreement Update 5 Sustainability & ESG 6 Markets 7 Outlook IRES REIT PLC l INTERIM RESULTS PRESENTATION l AUGUST 2021 17
Slide 18: Sustainability & ESG: Journey to Building a Sustainable and Responsible Business
SUSTAINABILITY & ESG JOURNEY TO BUILDING A SUSTAINABLE AND RESPONSIBLE BUSINESS KEY MILESTONES IN H1 2021 MATERIALITY MATRIX1 › Appointment of Stefanie Frensch to the Board as a non-executive independent director from 1st July 2021 › Board Sustainability Committee established to provide oversight of
Slide 19: Agenda
LANSDOWNE GATE | DUBLIN 12 AGENDA 1 Highlights 2 Financial Results 3 Portfolio 4 Investment Management Agreement Update 5 Sustainability & ESG 6 Markets 7 Outlook IRES REIT PLC l INTERIM RESULTS PRESENTATION l AUGUST 2021 19
Slide 20: Markets: Fundamentals Supportive of Long-Term Growth
MARKETS FUNDAMENTALS SUPPORTIVE OF LONG-TERM GROWTH 2020 2021f 2022f Strong Continuous Population Growth Ireland Economic 5.6m 1.5m Ireland the only EU country 5.4m 1.4m GDP growth, % to grow GDP in 2020 5.9 8.3 5.4 5.2m 1.3m Modified Domestic Demand1 -5.4 3.4 5.6 5.0m No. of people 1.2m Consumer Sp
Slide 21: Markets: Positive Demand Drivers
MARKETS POSITIVE DEMAND DRIVERS PRS Investment Volume 2012 – H1 2021 Low Rental Stock Available 18,000 Dublin Elsewhere 2,500 PRS remains an attractive asset 16,000 €1.5bn Rental stock at record low 2,000 (6m) class for 14,000 nationally and in Dublin investors, 12,000 providing stable 1,500 10,000
Slide 22: Agenda
BEECHWOOD COURT | DUBLIN 18 AGENDA 1 Highlights 2 Financial Results 3 Portfolio 4 Investment Management Agreement Update 5 Sustainability & ESG 6 Markets 7 Outlook IRES REIT PLC l INTERIM RESULTS PRESENTATION l AUGUST 2021 22
Slide 23: Outlook: Highly Cash Generative and Positioned for Growth
OUTLOOK HIGHLY CASH GENERATIVE AND POSITIONED FOR GROWTH Irish Multifamily Sector remains attractive… Favourable population Structural housing Strong Irish Yields on Uncertainties and demographics supply / demand economic multifamily assets risks exist in the and trend towards imbalance fundamentals
Slide 24: Appendices
ROCKBROOK | DUBLIN 18 TIME PLACE | DUBLIN 18 APPENDICES ELMPARK GREEN | DUBLIN 4 WATERSIDE | MALAHIDE PHOENIX PARK RACECOURSE | DUBLIN 15 24
Slide 25: Diverse Portfolio in the Dublin Area
DIVERSE PORTFOLIO IN THE DUBLIN AREA IRES REIT PLC l INTERIM RESULTS PRESENTATION l AUGUST 2021 25
Slide 26: Investment: 146 Units at Castleknock, Dublin 15
ACQUISITION DEVELOPMENT PARTNERSHIPS DEVELOPMENT EXISTING ASSETS INVESTMENT: 146 UNITS AT CASTLEKNOCK, DUBLIN 15 M50 Phoenix Park Racecourse, Castleknock, Dublin 15 Purchase Price1 €60 million Gross Initial Yield 5.3% Year built Phased 2002-2020 Closing date January 2021 Total units 1 bed 20 3 bed 1
Slide 27: Forward Purchase in Progress: Development at Merrion Road, Dublin 4
ACQUISITION DEVELOPMENT PARTNERSHIPS DEVELOPMENT EXISTING ASSETS FORWARD PURCHASE IN PROGRESS: DEVELOPMENT AT MERRION ROAD, DUBLIN 4 Merrion Road, Dublin 4 M50 Acquisition €47.16m Gross Yield 5.1%2 (Apr-21) Contract Price1 (Year 1) 5.6% (Nov-18) Contracted date November 2018 Expected closing date3 H
Slide 28: Development in Progress: Bakers Yard, Dublin City Centre
ACQUISITION DEVELOPMENT PARTNERSHIPS DEVELOPMENT EXISTING ASSETS DEVELOPMENT IN PROGRESS: BAKERS YARD, DUBLIN CITY CENTRE Bakers Yard, North Portland Street, City Centre, Dublin M50 Development Costs €16 million Gross Yield 6.1%1 (Year 1) Expected Completion2 2022 Total units3 1 bed 19 3 bed - 61 2
Slide 29: Contact: Irish Residential Properties REIT plc
Irish Residential Properties REIT plc South Dock House Hanover Quay DO2 XW94 Ireland www.investorrelations.iresreit.ie IRES REIT PLC l INTERIM RESULTS PRESENTATION l AUGUST 2021 29
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