15th May 2025 12:27
(Alliance News) - Irish Residential Properties REIT PLC on Thursday said it is "encouraged" by positive momentum as it reported "exceptional demand" for rental accommodation in Ireland.
The private rental accommodation provider said its portfolio continued to be "effectively fully occupied", with 99.7% occupancy during the three months to the end of March, compared to 99.4% in the prior quarter.
The company said its net rental income margin continued to improve in the first quarter, compared to the second half of 2024, as it implements income generating and cost reduction initiatives.
Irish Residential said it has worked to capitalise its previously underutilised real estate footprint, such as car parking.
Rent collections remain in excess of 99%, in line with 2024.
The company said its loan to value ratio has increased to 45.4% during the period, from 44.4% at the end of December, due to the impact of one-off refinancing costs and a dividend payment.
It noted that this is "well below" the 50% limit set by its debt covenants and Irish REIT legislation.
Irish Residential said disposals have "continued their strong momentum". It said the 13 units in the pipeline for disposal at the end of 2024 have now completed at "strong premia to book values," with a further 12 in the pipeline for the near term.
It expects to complete the disposal of at least 50 units in 2025, at an average sales premium between 15% and 20%. The company added that it has delivered premia ahead of this range at the start of 2025.
"We are pleased to report strong trading in the period and are encouraged by the positive momentum of the business. The execution of our recycling programme is in line with our expected timeframe and will further strengthen our financial position. The successful completion of the refinancing in the period will bolster our position in the market, delivering additional capital and significantly increased flexibility, positioning us well to play a part in the delivery of much needed new rental accommodation," said Chief Executive Officer Eddie Byrne.
Shares in Irish Residential Properties were up 1.5% at EUR1.07 in Dublin on Thursday afternoon.
By Michael Hennessey, Alliance News reporter
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