Irish Residential Properties (IRES) H2 2024 earnings summary

Executive summary

• 2024 saw internal transformation with new leadership, strategic review, and operational initiatives focused on revenue, cost, and capital management.

• Achieved continued strategic and financial progress, with improvements across key metrics and a focus on operational excellence and asset recycling.

• Maintained a high-quality, fully occupied portfolio with strong energy credentials and high tenant satisfaction.

• Advanced capital allocation through disposals, debt repayment, and a proposed share buyback, while upholding an 85% dividend payout policy.

• The board concluded that a sale of the company or its assets would not maximize shareholder value, opting instead for medium-term value initiatives.

Financial highlights

• Adjusted EPRA earnings grew by 1.4% year-over-year to €28.9m; adjusted earnings (excluding fair value movements) up 8.7%.

• Like-for-like revenue increased 1.7% year-over-year; NRI margin at 76.8%, with H2 margins improving over H1.

• Adjusted EBITDA declined 5% due to asset disposals, while financing costs fell 12.4% to €23.4 million.

• Proposed final dividend of €0.022 per share, a 10% increase year-over-year.

• Asset valuation declined by €33.7 million, mainly due to yield expansion in H1, but stabilized in H2.

Outlook and guidance

• Positioned for continued strong performance, supported by a robust balance sheet and stabilised valuations.

• The company expects to sell at least 50 units in 2025 as part of the ongoing asset recycling program.

• NRI margin improvements are expected to continue in 2025, driven by ongoing cost management.

• Regulatory changes are anticipated towards the end of 2024, with the government signaling willingness to revise rent caps.

• Long-term demand for rental accommodation remains strong, with policy focus shifting to support sector growth.