Irish Residential Properties (IRES) H2 2025 earnings summary

Executive summary

• Achieved a step change in operational and financial performance, with improved margins and earnings driven by strategic initiatives and cost control.

• Achieved 99.5% occupancy and over 99% collection rates as of 31 December 2025, maintaining market-leading operational performance.

• Disposed of 41 units at a 25%+ premium to book value, supporting capital recycling and portfolio optimization.

• Dividend payout at 85% of earnings, with IFRS NAV per share up 4.4% and total accounting return at 8.1%.

• Regulatory changes in Ireland's rental sector are expected to enhance business outlook and stimulate investment.

Financial highlights

• Adjusted EPRA earnings per share rose 2.3% year-on-year; adjusted earnings (excluding fair value movements) grew 7.4%.

• Occupancy remained at 99.5%, with rent collections exceeding 99%.

• Revenue increased to €85.5m, with NRI margin up 120bps to 78%.

• Profit before tax reached €49.7m, reversing a loss of €6.7m in the prior year; EPRA EPS growth was 16%.

• Dividend per share increased 19.9% to 4.89c, up 20% from 2024.

Outlook and guidance

• Confident in valuation outlook as inflation, interest rates, and rent controls have eased.

• Expect to realize embedded rent reversion as new regulations allow resetting rents to market on new tenancies from March 2026.

• Pipeline of earnings-enhancing assets is strong, with reinvestment of disposal proceeds prioritized.

• Forward funding of developments is under consideration to support housing supply.

• Regulatory changes expected to stimulate investment, increase liquidity, and tighten yields in the Irish PRS market.