Irish Residential Properties Reit Plc · EURONEXT:IRES
Irish Residential Properties Reit — FY2021 Earnings Presentation
25 slides from Irish Residential Properties Reit's earnings presentation, Feb 23, 2022
Slide 1: Building Communities & Creating Value
Building Communities & Creating Value Irish Residential Properties REIT plc Results Presentation Twelve Months to 31 December 2021 Strictly confidential Ashbrook | Clontarf | Dublin 3
Slide 2: Disclaimer
DISCLAIMER Cautionary Statements liability whatsoever (in negligence or otherwise, whether reasonableness of, and no reliance should be placed on, This presentation has been prepared by Irish Residential direct or indirect, in contract, tort or otherwise) for any loss such forward-looking statements
Slide 3: Contents
Contents Elmpark Green | Dublin 4 Margaret Sweeney 1 2021 Highlights Chief Executive 2 Financial Results 3 Portfolio 4 Sustainability & ESG Brian Fagan Finance Director 5 Markets 6 Outlook Sarah Stokes Investor Relations & Funding IRES REIT plc l FY21 Results Presentation | February 2022 3
Slide 4: Robust Performance and Positioned for Future Growth
2021 Highlights Robust Performance and Positioned for Future Growth › Delivered a strong operational and financial performance on all fronts in 2021 Strong FY21 Financial › Occupancy strengthened to 99.1%, with high rent collection rates of 99.2% Performance › Gross revenue from investment propertie
Slide 5: Strong Performance Underpinned by Robust Balance Sheet
Financial Highlights Strong Performance Underpinned 6.7% €79.7m 98.3% 98.4% 0.7% 99.1% by Robust Balance Sheet €74.7m €62.1m 6.7% Gross Revenue 0.7% in Occupancy Gross revenue from investment properties Occupancy strengthened to 99.1% in 2021 increased to €79.7m principally driven by (2020:
Slide 6: Investment in a Leading Operating Platform
Investment in a Leading Operating Platform Platform Provides Competitive Advantage to Drive Scalability, Performance and Resident Experience • Internalisation of Management and Experienced team – IRES Our People Operations and Investment Team Unique Full Operating • Added depth to the corporate team
Slide 7: Contents
Contents Phoenix Park Racecourse | Dublin 15 1 2021 Highlights 2 Financial Results 3 Portfolio 4 Sustainability & ESG 5 Markets 6 Outlook IRES REIT plc l FY21 Results Presentation | February 2022 7
Slide 8: Investment And Operational Excellence Delivering Strong Results
Financial Results Investment And Operational Excellence Delivering Strong Results For the twelve months ended 31 Dec 2021 31 Dec 2020 % change Robust results despite a challenging backdrop, with strong Income Statement (€m) occupancy at 99.1% and rent collection of 99.2% Revenue from Investment Prop
Slide 9: Strong Balance Sheet and Liquidity Enabling Growth
Financial Results Strong Balance Sheet and Liquidity Enabling Growth Strong Balance Sheet 2021 2020 % change Total Property Value (€m) 1,493.4 1,380.4 8.2% Net Asset Value (€m) 881.4 841.7 4.7% Strong liquidity & headroom for investment IFRS NAV per share (cents) 166.5 160.3 3.9% At Dec 2021, €18
Slide 10: Property Valuation and EPRA NTA Per Share
Financial Results Property Valuation EPRA NTA Per Share € cents per share 8.3 6.1 166.5 (6.1) (1.6) (0.1) As at 31 Dec 2021 Equivalent Yield1 159.9 Valuation MAX MIN WA Investment properties (€m) 1,450.6 5.43% 3.90% 4.53% Properties under development (€m) 18.0 4.25% 4.25% 4.25% 4.1% Development la
Slide 11: Termination of IMA and Internalisation of the Manager
IMA update Termination of IMA and Internalisation of the Manager • In January 2022, the Company exercised its right under the IMA to purchase the shares of the Manager on a liability free /cash free basis for €11 The IMA terminated on that date • The Company has received approval from the CBI to acq
Slide 12: Contents
Contents Merrion Road | Dublin 4 | July 2021 1 2021 Highlights 2 Financial Results 3 Portfolio 4 Sustainability & ESG 5 Markets 6 Outlook IRES REIT plc l FY21 Results Presentation | February 2022 12
Slide 13: Modern Portfolio With Strong Operating Metrics
Portfolio Modern Portfolio With Strong Operating Metrics Majority 2-bedroom apartments Mid-tier affordable residential sector 1% 2% 22% 6% 25% 14% €1,000 to €1,500 1 bed Average €1,500 to €2,000 Bedroom 2 bed Monthly 31 Dec 2021 31 Dec 2020 % change Split €2,000 to €2,500 3 bed Rent Portfolio Perfor
Slide 14: Strong Execution on Sustainable Accretive Growth Strategy
Portfolio Strong Execution on Sustainable Completed Acquisition Forward purchases/development agreements Accretive Growth Strategy Development 2021 | 2022 | 2023 | 2024/25 Phoenix Park Ashbrook, Clontarf Merrion Road Bakers Yard Ashbrook, Clontarf FP Planning Permission Racecourse Acquired 108 units
Slide 15: Future development at Rockbrook, Sandyford
Portfolio Future development at Rockbrook, Sandyford 428 Residential Units 2022-2024/25 Expected Timeline Planning permission granted for 428 residential units and 1,346 Sq M of commercial space at Sandyford site acquired in 2015. Located adjacent to light rail and existing IRES performing assets. E
Slide 16: Contents
Contents Tyrone Court | Dublin 8 1 2021 Highlights 2 Financial Results 3 Portfolio 4 Sustainability & ESG 5 Markets 6 Outlook IRES REIT plc l FY21 Results Presentation | February 2022 16
Slide 17: Journey to Building a Sustainable And Responsible Business
Sustainability & ESG Journey to Building a Sustainable And Responsible Business 100% 94% 55% 43% 22.5 Renewable energy Portfolio A-C BER Female company Female Average hours of for common areas 1 representation Board representation employee training IRES is focused on the below ESG rating indexes 1 F
Slide 18: Contents
Contents Lansdowne Gate | Dublin 12 1 2021 Highlights 2 Financial Results 3 Portfolio 4 Sustainability & ESG 5 Markets 6 Outlook IRES REIT plc l FY21 Results Presentation | February 2022 18
Slide 19: Positive Demand Drivers
Market Update Positive Demand Drivers Housing Demand Remains Above Supply Source: IIP; Central Bank Irish Population Growth Forecasts Source: CSO (Est. Housing Demand) 50 6,000 40 5,500 34k Est. National Annual Demand 30 #units 000’s 5,000 (000s) 20 4,500 10 4,000 0 3,500 1970s 1980s 1990s 2000s 201
Slide 20: Economic Outlook Supportive
Markets Economic Outlook Supportive Unemployment rate continues to decline Source: CSO, excludes Covid-19 related temporary unemployment 35 Standard Unemployment 30 25 Covid-19 Adjusted Unemployment 20 % 15 2021e 2022f 2023f 10 Irish Economic Indicators 5 GDP growth, % 16.1 8.7 5.2 0 Apr-20 Jul-20 O
Slide 21: The Impact of Inflation
Markets The Impact of Inflation What does inflation mean for IRES? Rental growth vs inflation Income Growth and Operating Costs Rental growth has outpaced inflation over the last 5 years though inflation ticking up to 5.5% in December 2021 140 Utilities are incurred by residents with the company tak
Slide 22: Contents
Contents Phoenix Park Racecourse | Dublin 15 1 2021 Highlights 2 Financial Results 3 Portfolio 4 Sustainability & ESG 5 Markets 6 Outlook IRES REIT plc l FY21 Results Presentation | February 2022 22
Slide 23: Highly Cash Generative and Positioned for Growth
Outlook Highly Cash Generative and Positioned for Growth Strong demand remains Favourable population demographics and trend towards Business fundamentals Strong track record & proven execution on strategy in the Irish multifamily smaller households remain strong and IRES Scalable, modern portf
Slide 24: Thank you for your time
Better living made simple Thank you for your time For more information please visit: www.iresreit.ie/investors 24
Slide 25: Irish Residential Properties REIT plc
Irish Residential Properties REIT plc South Dock House, Hanover Quay DO2 XW94, Ireland www.investorrelations.iresreit.ie ie.linkedin.com/company/ires
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