Irish Residential Properties (IRES) H2 2023 earnings summary

Executive summary

• Revenue rose 3.5% to €87.9m and adjusted EBITDA increased 3.3% to €56.0m; occupancy remained 99.4%.

• The €96.5m asset disposal programme strengthened the balance sheet; the Board launched a strategic review to explore options to maximise shareholder value.

Financial highlights

• Net rental income increased 3.3% to €67.9m; NRI margin was 77.3%, versus 77.5% in FY22.

• Adjusted EBITDA margin was 63.8%, versus 63.9%; EPRA earnings declined 10.7% to €27.6m and EPRA EPS was 5.2 cents, versus 5.8 cents.

• Proposed DPS was 4.45 cents, down 12.9% from 5.11 cents in FY22.

• Financing costs were €26.7m, versus €16.8m; the non-cash fair-value decrease in investment properties was €141.8m, versus €45.6m in FY22.

Outlook and guidance

• The strategic review will assess options including new initiatives, combinations, mergers, a REIT-status review, a sale of the issued share capital or asset sales; an initial update was planned ahead of the 2 May AGM.

• Irish GDP growth was forecast at 1.2% for 2024 and 3.2% for 2025; inflation was forecast at 2.2% and 1.9%, respectively.