Irish Residential Properties Reit Plc · EURONEXT:IRES
Irish Residential Properties Reit — FY2016 Earnings Presentation
24 slides from Irish Residential Properties Reit's earnings presentation, Feb 15, 2017
Slide 1: 2016 Preliminary Results Conference Call
IRISH RESIDENTIAL PROPERTIES REIT plc 2016 Preliminary Results CONFERENCE CALL 15 FEBRUARY 2017
Slide 2: Disclaimer: Cautionary Statements
DISCLAIMER 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 introdu
Slide 3: Agenda
INTRODUCTION Agenda Profile Highlights Reasons to invest in I•RES Performance Review Outlook Appendix 1 3
Slide 4: Profile
INTRODUCTION Profile I•RES became a REIT and completed an initial offering of €200 million in April 2014, followed by an offering of €215 million completed in March 2015 Mission Management Provide shareholders with sustainable, Professionally managed by CAPREIT’s long-term and growing dividends. Iri
Slide 5: Highlights
IRISH RESIDENTIAL PROPERTIES REIT plc Highlights Active period with Strong operating strategic high quality results supported by strong acquisitions and development market fundamentals Delivering shareholder • Since initial offering, acquired 2,039 apartments, including 763 in 2016 • Strong occupanc
Slide 6: Reasons to Invest in I•RES
IRISH RESIDENTIAL PROPERTIES REIT plc Reasons to Invest in I • RES Sustainable Strong Growing Real Estate Yields Fundamentals Proven Accretive Investment Acquisitions Manager and Developments 6
Slide 7: Proven Investment Manager
REASONS TO INVEST IN I RES Proven Investment Manager I•RES Fund Management, an Irish subsidiary of CAPREIT, is the S&P/TSX Index & CAPREIT total return company’s investment manager. 1500% ABOUT CAPREIT 1300% 1,077% Founded in 1997, one of first Canadian REITs High returns in rent controlled enviro
Slide 8: Sustainable Growing Yields
REASONS TO INVEST IN I RES Sustainable Growing Yields Residential sector with high quality assets give long-term, sustainable and steady returns Sustained rental growth being achieved in the Dublin residential lettings market + Strong development pipeline for I RES = Growing dividends for I RES
Slide 9: Highly Accretive Acquisitions
REASONS TO INVEST IN I RES Highly Accretive Acquisitions Modern property portfolio with weighted average of 8.8 years Excellent locations in Dublin Superior Neighbourhood Features Amazing Amenities Convenient transportation, In close proximity to many retail Playgrounds and beautiful with most pro
Slide 10: Accretive Planned Development
REASONS TO INVEST IN I RES Accretive Planned Development Opportunity to add approximately 600(1) apartments at currently-owned I RES properties New apartments can be built at lower cost than market - Significant infrastructure already built (parking, etc.) Submitted a revised planning applicatio
Slide 11: First Intensification Development
REASONS TO INVEST IN I RES 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 ra
Slide 12: Strong Real Estate Fundamentals
REASONS TO INVEST IN I RES Strong Real Estate Fundamentals Growing Significant Favourable Strong Rental Irish Supply/Demand Interest Rate Growth Economy Imbalance Environment Opportunities Upward pressure is being Brexit uncertainty will • New legislation with 4% applied on employee affect Irish e
Slide 13: Supply and Demand Imbalance
REASONS TO INVEST IN I RES Supply and Demand Imbalance Significant supply / demand imbalance Increasing apartment sector • Encouraged by government policy Dublin • Central bank mortgage limits • Immigrants natural apartment dwellers • Strong foreign direct investment base for Housing required empl
Slide 14: Performance Review
G R A N D C E N T R A L – S A N DY F O R D, D U B L I N 1 8 Performance Review 14
Slide 15: Portfolio Performance
PERFORMANCE REVIEW Portfolio Performance As at 31 Dec 2016 31 Dec 2015 Occupancy 98.7% 96.0% Average Monthly Rent(1) €1,427 €1,372 Gross Yield 6.6% 6.2% NRI Margin(2) 78.8% 80.8% (1) Average monthly rent for stabilised residential properties owned by the Company as of 31 December 2015 up 8.6% as at
Slide 16: Strong Operating Performance
PERFORMANCE REVIEW Strong Operating Performance Year Ended 31 Dec 2016 31 Dec 2015 Gross Rental Income (€,000) 38,754 24,721 Net Rental Income (€,000) 30,555 19,968 Basic Earnings Per Share (cents) 11.3 8.4 EPRA Earnings Per Share (cents) 4.9 3.3 Weighted Average Number of Shares 417,135,631 367,520
Slide 17: Strong Financial Position
PERFORMANCE REVIEW Strong Financial Position As At 31 Dec 2016 31 Dec 2015 Net Assets & EPRA Net Assets €469.6M €435.0M Basic & EPRA NAV per share (cents per share) (1) 112.5 104.3 Group Total Gearing 31.3% 8.8% As At 31 Dec 2016 Acquisition / Development Capacity (2) c. €150.0M (1) Dividends paid i
Slide 18: Outlook
Outlook Growth Strategies • Strong Acquisitions • Strong Developments Growing Stable Dividends 18 GRAND CENTRAL – SANDYFORD, DUBLIN 18
Slide 19: Strong Acquisition and Development Pipeline
O U T LO OK Strong Acquisition and Development Pipeline D O Development Off-Market Transactions 600(1) apartments and Private off-market opportunities other opportunities / in place infrastructure (garages) N P NAMA Private Equity Investors Significant remaining Private equity investors have apartme
Slide 20: Strong, Steady & Sustainable Growing Dividends
O U T LO OK Strong, Steady & Sustainable Growing Dividends 13.1M paid in 2016 1.8M paid in 2015 for the 2015 for the 2014 accounting period accounting period Stable, sustainable Focused on creating and growing dividends shareholder value over long term 20
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Slide 22: Appendix 1
IRISH RESIDENTIAL PROPERTIES REIT plc 2016 Preliminary Results CONFERENCE CALL Appendix 1
Slide 23: Property Locations
IRISH RESIDENTIAL PROPERTIES REIT plc Property Locations # of Property Apartments(1) 1 Kings Court 83 2 Grande Central 65 8 3 Priorsgate 103 4 Camac Crescent 90 5 The Laurels 19 6 The Marker 84 Beacon South Quarter 225 9 7 8 Charlestown 235 19 13 17 6 Bakers Yard 85 4 1 9 10 Lansdowne Gate 224 10 14
Slide 24: High Quality Portfolio
IRISH RESIDENTIAL PROPERTIES REIT plc High Quality Portfolio Commercial # apartments Total # of Value as at 31 space owned Average mthly Property Location Location Year Built Date Acquired owned(1) apartments(1) (7) Dec 2016(1) (sqm)(1) rent per apt.(1) (2) (3) Occupancy (1) (2) 1 Kings Court Smithf
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