Ireland’s largest landlord, Irish Residential Properties Reit (Ires), has reported a loss of €43.9m for the first six months of the year. This loss was due to a reevaluation of the total property value, which was impacted by higher interest rates and inflation. In its half-year financial results, published on Thursday, Ires stated that revenue grew by 5.2% to €44.3m compared to the same period last year. Net rental income for this period reached €34.3m, a 5.1% increase, with an occupancy level of 99.5%. The company’s average monthly rent per unit rose to €1,772, up from €1,688 in 2022. Earnings before interest, taxes, depreciation, and amortisation amounted to €28.7m.
Despite the positive financial indicators, Ires reported a loss of €43.9m, which can be attributed to a €56.5m non-cash revaluation of its total portfolio value. This revaluation reflects an increase in yields and a weakening in values across the real estate sector, driven by the higher interest rate and inflationary environment. Margaret Sweeney, the CEO of Ires, acknowledged that the company has not been immune to the wider recalibration of real estate sector values, resulting in a decline in the portfolio value during the first half of the year. However, she emphasized the resilience of the company’s high-quality assets and efficient operating model in uncertain conditions.
During the first six months of the year, Ires sold assets valued at €22m. Additionally, the company has agreed to sell 194 units for gross proceeds of just over €72m. The first closing of this sale is expected before the end of August, with 91 units being sold for €38.1m. The remaining units are anticipated to close within this calendar year. Ires Reit also announced its intention to declare an interim dividend of 2.45c per share for the first half of the year, representing a 6.5% increase compared to the prior year.
As of the end of June, Ires’s portfolio was valued at just over €1.4bn. The portfolio consists of 3,930 apartments and houses, primarily located in Dublin. The company’s half-year financial results demonstrate both the growth potential and challenges faced by the real estate sector in Ireland. With uncertain conditions persisting, Ires will need to continue adapting its strategies to navigate the evolving market landscape.