Irish Residential Properties Reit Plc · EURONEXT:IRES

Irish Residential Properties Reit — H1 2016 Earnings Presentation

24 slides from Irish Residential Properties Reit's earnings presentation, Aug 8, 2016

  1. Slide 1: 2016 Interim Results Conference Call

    2016 Interim Results Conference Call 8 August 2016

  2. 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

  3. Slide 3: Profile

    Profile • Focus on Irish residential rental sector – Significant supply / demand imbalance • Current portfolio of 2,288 apartments – High quality, well‐maintained, wtd. avg. age 8.4 years(1) • Proven ability to grow through acquisition – 674 apartments acquired to date in 2016 for €153.6 million • A

  4. Slide 4: Proven Acquisition Capabilities

    Proven Acquisition Capabilities €578 million total purchase price to date (1) Portfolio (cumulative) Elmpark City 2,500 Square + 201 Forum Tallaght +8 + 23 + 442 2,000 Tyrone BSQ Bessboro Rockbrook Court +8 + 40 Portfolio + 92 Orange + 270 1,500 Portfolio + 761 1,000 The The Initial Laurels Marker P

  5. Slide 5: Modern High Quality Portfolio

    Modern High Quality Portfolio 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 13 17 6 8 Charlestown 235 4 1 9 Bakers Yard 85 10 14 10 Lansdowne Gate 224 18 11 Rockbrook Grande Central 8

  6. Slide 6: Strong Real Estate Fundamentals

    Strong Real Estate Fundamentals Growing Irish economy ‐Upward pressure is being applied on employee compensation Significant supply/demand imbalance Strong pipeline for growth ‐Particularly NAMA, off‐market, 600 to 650 apartments for development, including 68 apartments at B2B(1) Strong rental growt

  7. Slide 7: Strong Apartment Outlook

    Strong Apartment Outlook • Significant supply / demand imbalance Dublin • Irish economy continues to strengthen and Housing required wage inflation beginning to enter the 2014–2018 5 year period economy • Increasing apartment sector ‐ Encouraged by government policy ‐ Central bank mortgage limits Ho

  8. Slide 8: Proven Investment Manager

    Proven Investment Manager • IRES Fund Management, an Irish subsidiary of S&P/TSX Index & CAPREIT total return CAPREIT, is the company’s investment manager 1500% About CAPREIT CAP 1300% 1211% • Founded in 1997, one of first Canadian REITs 1100% • High returns in rent controlled environment • 47,476 a

  9. Slide 9: Financial Review

    Grande Central | Sandyford, Dublin 18 Financial Review

  10. Slide 10: Significant Accomplishments

    Significant Accomplishments • Acquired 674 high‐quality apartments for total cost of c. €153.6 million(1) • Arranged new credit facility with a reduced margin and 5‐ year term • Paid dividends of €1.8 million in 2015 in respect of the 2014 accounting period • Commenced construction of 68 apartments

  11. Slide 11: 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

  12. Slide 12: 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 12

  13. Slide 13: 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

  14. Slide 14: Growth Strategies

    Tallaght Cross West Residences | Tallaght, Dublin 24 Growth Strategies

  15. Slide 15: Growing the Portfolio

    Growing the Portfolio  Consolidate fragmented Irish apartment market  Continue to have a significant pipeline of future acquisitions  Intensification and development opportunities 15

  16. Slide 16: Significant Acquisition Capacity from Gearing

    Significant Acquisition Capacity from Gearing  Gearing at only 30.2%(1)  Acquisition capacity in excess of €150 million(1)  At target gearing of 45% Enhancing Portfolio  Attractive low interest rates Value  Acquisitions accretive to EPRA EPS (1) As of 30 June 2016 16

  17. Slide 17: 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 Note: (1) Relates to a range of diffe

  18. Slide 18: Intensification – Highly Accretive Opportunity

    Intensification – Highly Accretive Opportunity  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 fir

  19. Slide 19: 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

  20. Slide 20: Growth & Performance to Continue

    Growth & Performance to Continue Continuing rent increases  Strong acquisition pipeline  Accretive intensification opportunities  Accretion through gearing and low interest rates  20

  21. Slide 21: 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 over long term Focused on creating shareholder value 21

  22. Slide 22: Slide 22

  23. Slide 23: Appendix: Property Portfolio

    APPENDIX Property Portfolio

  24. Slide 24: 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

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