Irish Residential Properties Reit Plc · EURONEXT:IRES
Irish Residential Properties Reit — Investor Presentation (June 2015)
42 slides from Irish Residential Properties Reit's investor presentation, June 2015
Slide 1: Investor Presentation
Investor Presentation June 2015
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS 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 to be compr
Slide 3: Profile
Profile • Focus on Irish residential rental sector – Significant supply / demand imbalance • Current portfolio of 1,566 apartments – High quality, well-maintained, weighted average age 7.6 years • Proven ability to grow through acquisition – 1,228 apartments acquired since April 2014 IPO • Strong or
Slide 4: Multi Residential Sector Advantages
Multi Residential Sector Advantages 1 Stable cash flow from diverse resident group 2 Short-term leases, predictable increases 3 Experienced, proven property management 4 Acquisitions at discount to replacement cost 4
Slide 5: Successful Business Model
Successful Business Model Professional Property Attention to Strong Tenant Management Maintenance Relationships Solid Organic Growth Weighted Average rent increase of 14.6% (on renewals and turnovers) (1) Note: (1) YTD as at 31 March 2015 5
Slide 6: Recently built high quality portfolio
Recently built high quality portfolio Tyrone Court Charlestown Kings Court Camac Crescent 92 apartments 235 apartments 83 apartments 90 apartments Bakers Yard 85 apartments Lansdowne Gate 224 apartments The Marker 84 apartments The Laurels 19 apartments Grande Central 65 apartments Priorsgate Beacon
Slide 7: Proven Acquisition Capabilities
Proven Acquisition Capabilities Portfolio (cumulative) 2,000 Tyrone Court + 92 Rockbrook portfolio + 270 1,500 Orange portfolio + 761 1,000 The Marker The Laurels + 84 500 + 19 Initial Portfolio 338 IPO 0 Apr '14 Jun '14 Jul '14 Oct '14 Mar '15 Jun '15 1,566 apartments acquired to date €413 million
Slide 8: Strong Market Fundamentals
Strong Market Fundamentals • Significant supply / demand imbalance Dublin Housing required • Irish economy continues to strengthen 2014–2018 5 year period • Increasing apartment sector - Encouraged by government policy Housing starts 2014 - Central bank mortgage limits - Immigrants natural apartment
Slide 9: Strengthening Irish Economy
Strengthening Irish Economy GNP growth has remained in positive territory 5.2% 6.0% 5.0% 3.7% 3.3% 4.0% 3.0% 1.1% 2.0% 1.0% 0.0% 2012 2013 2014 2015F Source: Central Statistics Office, Bank of Ireland Unemployment is dropping 2,200 16.0% 2,150 14.0% 2,100 2,050 12.0% 2,000 10.0% 1,950 8.0% 1,900 1,8
Slide 10: Strengthening Irish Economy
Strengthening Irish Economy Growing Irish population Ireland population growth (%) 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 2011 2012 2013 2014 Source: Central Statistics Office, base year 2010 Population growth is supported by the highest birth rate in Europe Ireland net population change ('
Slide 11: Proven Property manager & Investment advisor
Proven Property manager & Investment advisor S&P/TSX Index & CAPREIT total return • Founded in 1997, one of first Canadian REITs 934% • High returns in rent control environment • 41,837 apartments coast-to-coast in Canada(1) • Over 850 employees − Available and experienced support for I•RES • Ten re
Slide 12: Financial Review
Grande Central | Sandyford, Dublin 18 Financial Review
Slide 13: Significant Accomplishments
Significant Accomplishments • To date acquired 1,566 apartments for total cost of c. €413 million(1) • Raised €415 million in two equity offerings • As at 31 March 2015 average monthly rents up 26.9% since IPO • As at 31 March 2015 close to full occupancy • Maiden dividend of 0.48 cent per share pai
Slide 14: Strong Financial Performance
Strong Financial Performance • As at 31 March 2015 the NRI Margin is at an attractive 81% • Going in net initial yield for the total portfolio is 5.1% (1)(3) • Current net initial yield for the total portfolio is 5.2% (as of March) (2)(3) (1) Based on the annualized net rental income as at the respe
Slide 15: Significant Acquisition Capacity from Gearing
Significant Acquisition Capacity from Gearing Current gearing at only 6.4% €299 million to €375 million capacity Target gearing 45% to 50% Enhancing Attractive Interest rates Portfolio Value Highly accretive to EPRA EPS 15
Slide 16: Growth Strategies
Camac Crescent | Inchicore, Dublin 8 Growth Strategies
Slide 17: Growth & Performance to Continue
Growth & Performance to Continue • Property portfolio growth continues – Ability to source, complete & integrate acquisitions • NRI margin growth continues – Focus on cost management / reductions • Organic growth continues – Continuing strong occupancy, increasing AMRs • Diversify portfolio –
Slide 18: Growing the Portfolio
Growing the Portfolio Consolidate fragmented Irish apartment market Significant pipeline of future acquisitions Intensification opportunity to add approximately 600 - 650 apartments Considering social housing and student housing opportunities 18
Slide 19: Why Intensification makes sense
Why Intensification makes sense Significant infrastructure (e.g. garages already constructed) As a result, apartments can be built at lower cost than market Highly accretive opportunity 19
Slide 20: Strong Acquisition Pipeline
Strong Acquisition Pipeline €13.6 billion of property assets as of 31 December 2014 Regional exposures were as follows: Dublin 45% (€6bn) NAMA Rest of Republic of Ireland 20% (€2.7bn) United Kingdom 24% (€3.3bn) Rest of World / Other 11% (€1.5bn) Off-market Private off-market opportuni
Slide 21: Continued Organic Growth
Continued Organic Growth Maintain high occupancy Maximize average monthly rents Operational cost savings and efficient procurement Capitalize on economies of scale and operating synergies 21
Slide 22: Summary – An Exciting Future
Summary – An Exciting Future Fully integrated management platform Aligned interests with all shareholders Significant high demand and supply shortage Solid growth & performance since inception Committed long-term player 22
Slide 23: Property Portfolio
Property Portfolio
Slide 24: High Quality Portfolio
HIGH QUALITY PORTFOLIO Average Value as at Commercial monthly Property Year Date # apartments Total # of 31 Dec space owned rent per Occupancy(3 Location Location Built Acquired owned(1) apartments(1) 2014(1) (sqm)(1) apartment(3) ) 1 Kings Court Smithfield 2006 10 Sep 2013 83 83 €16.3m 566 €1,161 1
Slide 25: Kings Court
KINGS COURT North King Street, Smithfield, Dublin 7 Property details(1) Year Built: 2006 # of apartments owned: 83 Total # of apartments: 83 Valuation as at 31 December: €16.3m Passing rent as at 31 December: €1.2m (annualized) AMR per apartment as at 31 December: €1,161 Occupancy as at 31 December:
Slide 26: Grande Central
GRANDE CENTRAL Rockbrook, Sandyford , Dublin 18 Property details(1) Year Built: 2008/20092007 Suites: # of apartments owned: 63 65 Passing Total # ofrent apartments: as at 31 December: €1.0m (annualized) 195 AMR per suite Valuation as atas31at 31 December: €1,339 December: €18.6m Occupancy Passing r
Slide 27: Priorsgate
PRIORSGATE Greenhills Road, Tallaght, Dublin 24 Property details(1) Year Built: 2007 # of apartments owned: 102 Total # of apartmentss: 198 Valuation as at 31 December: €17.0m Passing rent as at 31 December: €1.3m (annualized) AMR per apartment as at 31 December: €932 Occupancy as at 31 December: 10
Slide 28: Camac Crescent
CAMAC CRESCENT Turvey Avenue, Inchicore, Dublin 8 Property details(1) Year Built: 2008 2008 Suites: # of apartments owned: 90 90 Passing Total # ofrent apartments: as at 31 December: €1.2m (annualized) 110 AMR per suite Valuation as atas31at 31 December: €1,063 December: €16.1m Occupancy Passing ren
Slide 29: The Laurels
THE LAURELS Main Street, Tallaght, Dublin 24 Property details(1) Year Built: 2007 # of apartments owned: 19 Total # of apartments: 19 Valuation as at 31 December: €2.7m Passing rent as at 31 December: €0.2m (annualized) AMR per apartment as at 31 December: €1,011 Occupancy as at 31 December: 100.0%
Slide 30: The Marker
THE MARKER Grand Canal Square, Docklands, Dublin, Dublin 2 Property details(1) Year Built: 2012 # of apartments owned: 84 Total # of apartments: 105 Valuation as at 31 December: €54.8m Passing rent as at 31 December: €2.6m (annualized) AMR per apartment as at 31 December: €2,228 Occupancy as at 31 D
Slide 31: Beacon South Quarter
BEACON SOUTH QUARTER Beacon South Quarter, Sandyford, Dublin 18 Property details(1) Year Built: 2007/2008 # of apartments owned: 217 Total # of apartments: 850 Valuation as at 31 December: €76.2m Passing rent as at 31 December: €3.8m (annualized) AMR per apartment as at 31 December: €1,375 Occupancy
Slide 32: Charlestown
CHARLESTOWN Charlestown Place, Finglas, Dublin 11 Property details(1) Year Built: 2007 # of apartments owned: 235 Total # of apartments: 285 Valuation as at 31 December: €47.8m Passing rent as at 31 December: €3.2m (annualized) AMR per apartment as at 31 December: €1,093 Occupancy as at 31 December:
Slide 33: Bakers Yard
BAKERS YARD North Portland Street, Dublin, Dublin 1 Property details(1) Year Built: 2007/2008 # of apartments owned: 85 Total # of apartments: 132 Valuation as at 31 December: €19.3m Passing rent as at 31 December: €1.2m (annualized) AMR per apartment as at 31 December: €1,154 Occupancy as at 31 Dec
Slide 34: Lansdowne Gate
LANSDOWNE GATE Lansdowne Gate, Drimnagh, Dublin 12 Property details(1) Year Built: 2005 # of apartments owned: 224 Total # of apartments: 280 Valuation as at 31 December: €54.8m Passing rent as at 31 December: €3.2m (annualized) AMR per apartment as at 31 December: €1,187 Occupancy as at 31 December
Slide 35: Rockbrook Grande Central
ROCKBROOK GRANDE CENTRAL Rockbrook, Sandyford, Dublin 18 Property details(1) Year Built: 2008/20092007 Suites: # of apartments owned: 63 81 Passing Total # ofrent as at 31 December: apartments: €1.0m (annualized) 195 AMR per suite Valuation as atas31at 31 December: December: €1,339 €26.7m(2) Occupan
Slide 36: Rockbrook South Central
ROCKBROOK SOUTH CENTRAL Rockbrook, Sandyford, Dublin 18 Property details(1) Year Built: 2008/20092007 Suites: # of apartments owned: 63 189 Passing Total # ofrent apartments: as at 31 December: €1.0m (annualized) 224 AMR per suite Valuation as atas31at December: 31 December: €1,339 €62.2m(2) Occupan
Slide 37: Tyrone Court
TYRONE COURT Tyrone Court, Inchicore, Dublin 8 Property details(1) Year Built: 2008/20092014 Suites: # of apartments owned: 63 92 Passing Total # ofrent apartments: as at 31 December: €1.0m (annualized) 128 AMR per suite Purchase priceas asatat31 5 June: December: €1,339 €19.5m Occupancy Passing ren
Slide 38: Appendices
APPENDICES Grande Central | Rockbrook, Sandyford, Dublin 1 38
Slide 39: 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
Slide 40: 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
Slide 41: Management Arrangements Summary
MANAGEMENT ARRANGEMENTS SUMMARY The Company pays annual management fees (the “Management Fee”), equal to 0.5% of the Company’s Asset Management NAV(1) and 3% of gross rental income. This is the total fee to the Company which is apportioned between the Company’s alternative investment fund manager
Slide 42: Slide 42
Irish Residential Properties REIT — Investor Presentation (June 2015) on 6ix