Irish Residential Properties Reit Plc · EURONEXT:IRES
Irish Residential Properties Reit — FY2017 Earnings Presentation
30 slides from Irish Residential Properties Reit's earnings presentation, 2018
Slide 1: 2017 Preliminary Results Conference Call
Irish Residential Properties REIT plc 2017 Preliminary Results Conference Call
Slide 2: Cautionary Statements
DISCLAIMER Cautionary Statements This presentation has been prepared by Irish Residential Properties REIT PLC (the “Company” or “I-RES”) 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 n
Slide 3: Overview
2017 Preliminary Results Conference Call Irish Residential Properties REIT plc Overview OPPORTUNITES CORPORATE STRATEGIES PERFORMANCE PERFORMANCE POSITIVE HIGHLIGHTS FOR THE YEAR APPENDICES PROFILE FOR GROWTH FOR GROWTH REVIEW OUTLOOK AHEAD 3
Slide 4: Corporate Profile
2017 Preliminary Results Conference Call Irish Residential Properties REIT plc Corporate Profile Irish Residential Properties REIT plc (I-RES) shares are listed on the Irish Stock Exchange I-RES became a REIT and completed an initial public offering of shares of €200 million in April 2014, followed
Slide 5: Highlights - Financial
2017 Preliminary Results Conference Call Irish Residential Properties REIT plc Dividends per Share EPRA Earnings per Share EPRA NAV (€ millions) 6.00 7 520 6 500 5.00 504 5.2 5 6.0 4.90 Highlights -Financial 4.00 3.00 3.15 4 3 3.3 4.9 480 460 470 2.00 2 440 1.00 1 420 435 I-RES’ portfolio is a stron
Slide 6: Highlights
2017 Preliminary Results Conference Call Irish Residential Properties REIT plc Highlights 1 High, stable occupancy rates: 99.8% (2017) 98.7% (2016) 2 Successful completion in July of “The Maple” development – 68 apartments at Beacon South Quarter, Sandyford fully leased at the end of 2017 3 Acquired
Slide 7: Opportunities for the Year Ahead
Opportunities for the Year Ahead
Slide 8: Opportunities for the Year Ahead
2017 Preliminary Results Conference Call Irish Residential Properties REIT plc Opportunities for the Year Ahead DEMAND OUTWEIGHS ECONOMIC POPULATION SUPPLY GROWTH GROWTH Growing apartment sector Ireland remains the fastest-growing Young and steadily growing population of Housing supply short
Slide 9: Supply and Demand Imbalance
2017 Preliminary Results Conference Call Irish Residential Properties REIT plc Supply and Demand Imbalance Estimated Annual New Household Formation Significant supply / demand imbalance Increasing rental sector • Encouraged by government policy • Central bank mortgage limits • Immigrants natural apa
Slide 10: Economic Growth
2017 Preliminary Results Conference Call Irish Residential Properties REIT plc Economic Growth Strong 2017 GNP growth and forecast Unemployment is dropping for 2018 9.0% 10.0% 2,150 16.0% 9.0% 2,100 14.0% 6.9% 8.0% 2,050 12.0% 2,000 5.7% 7.0% 1,950 10.0% 6.0% 4.2% 5.0% 1,900 8.0% 3.4% 3.3% 3.3% 4.0%
Slide 11: Population Growth
2017 Preliminary Results Conference Call Irish Residential Properties REIT plc Population Growth Growing Irish Population Population growth is supportive by the highest birth rate in Euro 4,850 200 Change in Population (in thousands) 4,800 150 Population (in thousands) 4,750 100 4,700 42.4 51.7 52.9
Slide 12: Strategies for Growth
Strategies for Growth
Slide 13: Accretive Planned Development
New apartments can be built at lower cost than market • Significant infrastructure already Infill and conversion built (parking, opportunities on basement) existing properties Planning Accretive applications being prepared at various sites An Bord Pleanála (the Irish Planning Board) upheld the Count
Slide 14: Strategic Direction
2017 Investor Presentation Irish Residential Properties REIT plc STRATEGIES FOR GROWTH Strategic Direction Development of Existing Focus on Commuter I-RES Properties Markets • Opportunity to add approximately Opportunity to build the portfolio with 600(1)apartments at currently-owned I-RES houses an
Slide 15: Strategic Direction
2017 Investor Presentation Irish Residential Properties REIT plc STRATEGIES FOR GROWTH Strategic Direction Local Development Accretive Partnerships Acquisitions • Partnerships with local builders and • Continued evaluation of new developers that have planning acquisition opportunities in permission
Slide 16: First Intensification Development
2017 Preliminary Results Conference Call Irish Residential Properties REIT plc First Intensification Development In July 2017, the Company completed its first intensification development: 68 apartments at block B2B (Beacon South Quarter), Sandyford, Dublin 18. Direct access via tram to Dublin City
Slide 17: Hansfield Wood – First Partnership Development
2017 Preliminary Results Conference Call Irish Residential Properties REIT plc Hansfield Wood – First Partnership Development The Hansfield Wood transaction represents the first step in the strategy to develop the asset base through partnerships with local residential developers to deliver homes at
Slide 18: Hansfield Wood
2017 Preliminary Results Conference Call Irish Residential Properties REIT plc HansfieldWood On 15 November 2017, the Company made its first acquisition in partnership with a local builder at Hansfield Wood, Ongar, Dublin 15. • 4.5 acre development site with purchase price of €7 million • Partnershi
Slide 19: Proven Investment Manager
am it! Proven Investment Manager T-RES r
Slide 20: Excellent Investment Manager
2017 Preliminary Results Conference Call Irish Residential Properties REIT plc Excellent Investment Manager I-RES Fund Management, an Irish subsidiary of CAPREIT, is the company’s investment manager. ABOUT CAPREIT Founded in 1997, one of first Canadian REITs High returns in rent controlled environme
Slide 21: Excellent Investment Management and Operating Model
2017 Preliminary Results Conference Call Irish Residential Properties REIT plc Excellent Investment Management and Operating Model Technology Staff Training Knowledge& Experience Hands-onApproach Resident andSystems Communications
Slide 22: Performance Review
PERFORMANCE REVIEW Grand Central – Sandyford, Dublin 18 22
Slide 23: Strong Operating Performance
PERFORMANCE REVIEW Strong Operating Performance 31 December 31 December Year Ended 2017 2016 Revenue from Investment Properties(€,000) 44,693 38,754 Net Rental Income (€,000) 36,271 30,555 Profit (€,000) 65,079 46,991 Basic Earnings Per Share (cents) 15.6 11.3 EPRA Earnings Per Share (cents) 6.0 4.9
Slide 24: Portfolio Performance
PERFORMANCE REVIEW Portfolio Performance 31 December 31 December As at 2017 2016 Occupancy 99.8% 98.7% Average Monthly Rent(1) €1,517 €1,427 Gross Yield 6.6% 6.6% Number of Apartments Acquired in the Period 1 763 Number of Apartments Developed/Constructed 71 1 through Intensification in the Year Tot
Slide 25: Strong Financial Position
PERFORMANCE REVIEW Strong Financial Position 31 December 31 December As At 2017 2016 Net Assets €504.0M €469.6M EPRA Net Assets €504.2M €469.6M Basic NAV per share (cents per share) (1) 120.8 112.5 EPRA NAV per share (cents per share) (1) 118.5 111.7 Group Total Gearing 33.0% 31.3% As At 31 December
Slide 26: Positive Outlook
PERFORMANCE REVIEW Positive Outlook Intensification, Developments and Accretive Acquisitions • Development and acquisition capacity of c. €150 million Strong Real Estate Fundamentals • Growing Irish Economy • Significant Supply and Demand Imbalance Sustainable Growing Dividends 26 Grand Central – Sa
Slide 27: Sustainable Growing Dividends
2017 Preliminary Results Conference Call Irish Residential Properties REIT plc Sustainable Growing Dividends Dividends Per Share Residential sector with high quality assets give long-term, sustainable and steady returns (cents) 6 Sustained rental growth being achieved in the Dublin residential letti
Slide 28: Appendix
IRISH RESIDENTIAL PROPERTIES REIT plc Appendix 1
Slide 29: Superior Dublin Locations
Superior Dublin Locations 08 01 KINGS COURT 12 ROCKBROOK Sandyford D7 (83 Units) SOUTH CENTRAL 21 Sandyford D18 (189 Units) 02 GRANDE CENTRAL Sandyford D18 (65 Units) 13 TYRONE COURT Inchicore D8 (95 Units) 03 PRIORSGATE 09 Tallaght D24 (103 Units) 14 BESSBORO Terenure D6 (40 Units) 04 CAMAC CRESCEN
Slide 30: High Quality Portfolio
2017 Preliminary Results Conference Call Irish Residential Properties REIT plc HighQuality Portfolio # apartments Total # of Value as at 31 Commercial space Average mthly rent per Property Location Location Year Built Date Acquired owned(1) apartments(1) (7) December 2017(1) owned (sqm)(1) apt.(1) (
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