Irish Residential Properties Reit Plc · EURONEXT:IRES
Irish Residential Properties Reit — Investor Presentation (September 2016)
52 slides from Irish Residential Properties Reit's investor presentation, September 2016
Slide 1: Investor Presentation September 2016
Investor Presentation September 2016
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 does not take into account the impact of reports of new rental and development regulations, and management awaits the introduction of le
Slide 3: Background
Background I•RES became a REIT and completed an initial offering of €200 million in April 2014 Follow on offering of €215 million completed in March 2015 Professionally managed by CAPREIT’s Irish subsidiary, IRES Fund Management, I•RES has brought professional apartment management to Ireland 3
Slide 4: Profile
Profile • Focus on Irish residential rental sector • Current portfolio of 2,377 apartments – High quality, well-maintained, wtd. avg. age 8.5 years(1) • Proven ability to grow through acquisition – 763 apartments acquired to date in 2016 for €171.9 million • Ability to develop 600 to 650 apartments(
Slide 5: Proven Investment Manager
Proven Investment Manager • IRES Fund Management, an Irish subsidiary of CAPREIT, is the company’s investment manager S&P/TSX Index & CAPREIT total return About CAPREIT 1500% • Founded in 1997, one of first Canadian REITs 1151% 1300% • High returns in rent controlled environment 1100% • 48,609 apart
Slide 6: Strong Real Estate Fundamentals
Strong Real Estate Fundamentals Growing Irish economy - Upward pressure is being applied on employee compensation Brexit uncertainty will affect Irish economic growth to some extent - Should be positive for rental sector, bringing new high paid tenants Significant supply/demand imbalance Favourable
Slide 7: Supply and Demand Imbalance
Supply and Demand Imbalance • Significant supply / demand imbalance Dublin • Increasing apartment sector Housing required 2014–2018 5 year period - Encouraged by government policy - Central bank mortgage limits - Immigrants natural apartment dwellers - Strong foreign direct investment base for emplo
Slide 8: Strengthening Irish Economy
Strengthening Irish Economy Strong 2015 GNP growth and forecast for 2016 and 2017 6.9% 8.0% 5.7% 7.0% 4.6% 6.0% 5.0% 3.3% 3.3% 3.1% 4.0% 3.0% 2.0% 1.0% 0.0% 2016F 2017F 2012 2013 2014 2015 Source: Central Statistics Office, Bank of Ireland Unemployment is dropping 2,150 16.0% 2,100 14.0% 2,050 12.0%
Slide 9: Population Growth
Population Growth Growing Irish population Ireland population growth (%) 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2011 2012 2013 2014 2015 2016 Source: Central Statistics Office, base year 2010 Population growth is supported by the highest birth rate in Europe Ireland net po
Slide 10: Irish Purchasing Managers' Index (PMI) Indicating Expansion
Irish Purchasing Managers’ Index (PMI) Indicating Expansion Irish PMIs 70.0 65.0 60.0 55.0 50.0 45.0 40.0 35.0 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Manufacturing Services Construction 50 = no change Sources: Investec (for the Manufacturing and Services PMIs), Ulster Bank (for the Construction P
Slide 11: Performance Review
Grande Central | Sandyford, Dublin 18 Performance Review
Slide 12: Significant Accomplishments
Significant Accomplishments • Since initial offering, acquired 2,039 apartments, including 763 in 2016 • Arranged new credit facility with a reduced margin and 5- year term • Paid dividends of €13.1 million in 2016 in respect of the 2015 accounting period • Commenced construction of 68 apartments at
Slide 13: Strong Occupancy & AMR
Strong Occupancy & AMR As at 30 June 2016 31 Dec 2015 30 June 2015 Occupancy 98.3% 96.0% 99.5% Average Monthly Rent €1,399 €1,372 €1,364 NRI Margin(1) 78.4% 80.8% 80.6% Same Property NRI (2) +6.6% - - As at 30 June 2016 Portfolio Gross Yield at Fair Value(3) 6.5% (1) For the period 1 January 2016 to
Slide 14: Strong Operating Performance
Strong Operating Performance 6 Months Ended 30 June 2016 30 June 2015 Gross Rental Income (€,000) 17,890 11,198 Net Rental Income (€,000) 14,030 9,026 Fair Value Gain (€,000) 15,634 10,098 Profit (€,000) 24,700 14,824 14
Slide 15: Estimated Lease Renewals
Estimated Lease Renewals Renewals(1) Q1, 2017 c. 10% Q2, 2017 c. 20% Q3, 2017 c. 20% Q4, 2017 c. 20% (1) Based on current leases as of 1 September 2016 15
Slide 16: Strong Financial Position
Strong Financial Position 31 December As At 30 June 2016 2015 Total Same Property Value Increase(1) +4.6% - Basic & EPRA Net Assets €446.9M €435.0M Basic & EPRA NAV per share (cents per share) 107.2 104.3 Gearing 30.2% 8.6% Acquisition / Development Capacity (2) €150.0M (1) Properties owned as of 31
Slide 17: Growth Strategies
Tallaght Cross West Residences | Tallaght, Dublin 24 Growth Strategies
Slide 18: Strong Acquisition Pipeline
Strong Acquisition Pipeline NAMA Significant remaining apartment portfolio Off-market Private off-market opportunities transactions Private equity Private equity investors have acquired large asset and debt portfolios and are investors beginning to recycle 18
Slide 19: Intensification – Highly Accretive Opportunities
Intensification – Highly Accretive Opportunities Opportunity to add approximately 600 to 650(1) apartments (including 68 apartments at B2B) • At currently-owned properties New apartments can be built at lower cost than market • Significant infrastructure already built (parking, etc.) Started f
Slide 20: First Intensification Development
First Intensification Development - 68 apartments at block B2B (Beacon South Quarter), Sandyford Dublin 18 - Direct access via tram to Dublin City Centre in 20 minutes - Home to high profile employers - General contractor on a fixed price basis - Expected Gross Yield in the range of 8.5% to 9% - Ava
Slide 21: Growth & Performance to Continue
Growth & Performance to Continue Continuing rent increases Strong acquisition pipeline Accretive intensification opportunities Accretion through gearing and low interest rates 21
Slide 22: Strong, Steady and Growing Dividends
Strong, Steady and Growing Dividends €13.1M paid in 2016 for the 2015 accounting period €1.8M paid in 2015 for 2014 accounting period Stable, sustainable and growing dividends over long term Focused on creating shareholder value 22
Slide 23: Residential Rental Sector Advantages
Residential Rental Sector Advantages 1 Stable cash flow from diverse resident group 2 Short-term leases(1) 3 Experienced, proven property management 4 Acquisitions and owned development opportunities at discount to replacement cost (1) Based on a change in law which came into effect for a pe
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Slide 25: Appendix: Property Portfolio
APPENDIX Property Portfolio
Slide 26: Property Locations
Property Locations Property # of Apartments 1 Kings Court 83 8 2 Grande Central 65 3 Priorsgate 102 4 Camac Crescent 90 5 The Laurels 19 6 The Marker 84 9 7 Beacon South Quarter 225 19 13 17 6 8 Charlestown 235 4 1 9 Bakers Yard 85 10 14 10 Lansdowne Gate 224 18 11 Rockbrook Grande Central 81 12 Roc
Slide 27: High Quality Portfolio
HIGH QUALITY PORTFOLIO Value as at Commercial Average monthly Property Year Date # apartments Total # of 30 June space owned rent per Occupancy Location Location Built Acquired owned(1) apartments(1) (7) 2016(1) (sqm)(1) apt.(1) (2) (3) (1) (2) 1 Kings Court Smithfield 2006 10 Sep 2013 83 83 € 18.7m
Slide 28: 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 30 June: €18.7m Passing rent as at 30 June: €1.4m (annualised) AMR per apartment as at 30 June: €1,315 Occupancy as at 30 June: 98.8% Commercia
Slide 29: 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 30 June: €1.0m (annualized) 195 AMR per suite Valuation as atas30atJune: 31 December: €1,339 €20.4m Occupancy Passing rentasasat
Slide 30: Priorsgate
PRIORSGATE Greenhills Road, Tallaght, Dublin 24 Property details(1) Year Built: 2007 # of apartments owned: 102 Total # of apartments: 198 Valuation as at 30 June: €18.4m Passing rent as at 30 June: €1.5m (annualised) AMR per apartment as at 30 June: €1,093 Occupancy as at 30 June: 100.0% Commercial
Slide 31: 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 30 June: €1.2m (annualized) 110 AMR per suite Valuation as atas30atJune: 30 June: €1,063 €18.9m Occupancy Passing rentasasatat30 3
Slide 32: 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 30 June: €3.1m Passing rent as at 30 June: €0.3m (annualised) AMR per apartment as at 30 June: €1,197 Occupancy as at 30 June: 100.0% Commercial Area:
Slide 33: 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 30 June: €56.9m Passing rent as at 30 June: €3.0m (annualised) AMR per apartment as at 30 June: €2,638 Occupancy as at 30 June: 97.6% C
Slide 34: Beacon South Quarter
BEACON SOUTH QUARTER Beacon South Quarter, Sandyford, Dublin 18 Property details(1) Year Built: 2007/2008 # of apartments owned: 225 Total # of apartments: 850 Valuation as at 30 June: €82.6m Passing rent as at 30 June: €5.2m (annualised) AMR per apartment as at 30 June: €1,620 Occupancy as at 30 Ju
Slide 35: Charlestown
CHARLESTOWN Charlestown Place, Finglas, Dublin 11 Property details(1) Year Built: 2007 # of apartments owned: 235 Total # of apartments: 285 Valuation as at 30 June: €57.6m Passing rent as at 30 June: €3.6m (annualised) AMR per apartment as at 30 June: €1,268 Occupancy as at 30 June: 99.1% Commercia
Slide 36: 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 30 June: €20.0m Passing rent as at 30 June: €1.5m (annualised) AMR per apartment as at 30 June: €1,343 Occupancy as at 30 June: 100.0% Co
Slide 37: 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 30 June: €63.0m Passing rent as at 30 June: €3.8m (annualised) AMR per apartment as at 30 June: €1,423 Occupancy as at 30 June: 97.5% Commerci
Slide 38: 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 30 June: apartments: €1.0m (annualized) 195 AMR per suite Valuation as atas 30at 30 June: June: €1,339 €27.4m(2) Occupancy Passing
Slide 39: 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 30 June: €1.0m (annualized) 224 AMR per suite Valuation as atas30atJune: 30 June: €1,339 €69.0m(2) Occupancy Passing re
Slide 40: 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 30 June: €1.0m (annualized) 128 AMR per suite Valuation as atas30atJune: 30 June: €1,339 €21.5m Occupancy Passing rentasasatat30
Slide 41: Bessboro
BESSBORO Bessboro, Terenure, Dublin 6 Property details(1) Year Built: 2008/20092008 Suites: # of apartments owned: 63 40 Passing Total # ofrent apartments: as at 30 June: €1.0m (annualized) 40 AMR per suite Valuation as atas30atJune: 30 June: €1,339 €12.3m Occupancy Passing rentasasatat30 30June: Ju
Slide 42: Tallaght Cross West
TALLAGHT CROSS WEST Tallaght Cross West, Tallaght, Dublin 24 Property details(1) Year Built: 2008/20092008 Suites: # of apartments owned: 63 442 Passing Total # ofrent apartments: as at 30 June: €1.0m (annualized) 507 AMR per suite Valuation as atas30atJune: 30 June: €1,339 €83.1m Occupancy Passing
Slide 43: Forum
FORUM Forum, Sandyford, Dublin 18 Property details(1) Year Built: 2008/20092007 Suites: # of apartments owned: 63 8 Passing Total # ofrent apartments: as at 30 June: €1.0m (annualized) 127 AMR per suite Valuation as atas30atJune: 30 June: €1,339 €2.2m Occupancy Passing rentasasatat30 30June: June: 1
Slide 44: City Square
CITY SQUARE City Square, Gloucester Street, Dublin 2 Property details(1) Year Built: 2008/20092006 Suites: # of apartments owned: 63 23 Passing Total # ofrent apartments: as at 30 June: €1.0m (annualized) 27 AMR per suite Valuation as atas30atJune: 30 June: €1,339 €5.5m Occupancy Passing rentasasata
Slide 45: Elmpark
ELMPARK Elmpark, Merrion Road, Dublin 4 Property details(1) Year Built: 2008/20092006 Suites: # of apartments owned: 63 201 Passing Total # ofrent apartments: as at 30 June: €1.0m (annualized) 332 AMR per suite Valuation as atas30atJune: 30 June: €1,339 €59.5m Occupancy Passing rentasasatat31 30Dece
Slide 46: Coldcut
COLDCUT Coldcut Road, Clondalkin, Dublin 22 Property details(1) Year Built: 2008/20092012 Suites: # of apartments owned: 63 89 Passing Total # ofrent apartments: as at 30 June: €1.0m (annualized) 93 AMR per suite Purchase priceasasatat30 31June: August: €1,339 €18.3m Occupancy Passing rentasasatat31
Slide 47: Appendices
APPENDICES Grande Central | Rockbrook, Sandyford, Dublin 1 47
Slide 48: 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 49: 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 50: Strong majority independent Board
Strong majority independent Board Margaret Sweeney – Independent Non-Executive Director Former CEO of Dublin Airport Authority plc and Postbank Ireland Limited Currently non-executive director on the boards of Dalata Hotel Group plc and a number of private companies Sits on the Council of the
Slide 51: Management Arrangements Summary
MANAGEMENT ARRANGEMENTS SUMMARY IRES Fund Management Limited (“IRES Fund”), an indirect wholly owned subsidiary of CAPREIT, became authorised as an AIFM on 28 October 2015. As disclosed in the Company’s recent prospectuses, the investment management agreement between the Company and IRES Fund (t
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