Irish Residential Property REIT plc - 10th September 2020 EPRA 2020 Conference - Irish Residential Properties ...
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Better living made simple
Irish Residential
Property REIT plc
10th September 2020
Building
Communities
and Creating
Value EPRA 2020 Conference
I RES REIT – Who we are
Attractive Portfolio
Delivering Long-term • Ireland’s largest private residential landlord, with 3,834 units
Secure Returns • c. 98% occupancy rate
• Modern portfolio, average age of 11.5 years, with capital allocation focused on growth
Delivered Resilient
Financial Performance in • Revenues grew 34%, NRI also increased by 30% year-on-year in H1
H1 Despite Covid-19 • NRI (NOI) margin 79.2%
• Continuation of dividend payments, 2.75 cent per share for H1 2020, growth of 1.8% yoy
Clear Investment & • c.53% portfolio growth over the last 2.5 years
Growth Strategy
• 3-pronged strategy - acquisitions, forward purchases and development
• c.20% portfolio pipeline
Robust Capital Structure
• Robust balance sheet, ample liquidity, debt maturities from 2024 – 2032
• €14m of cash, €212m of committed bank facilities under the RCF
Interim report, as at 30 June 2020
Demand Drivers Underpinning Investment Case
Population growth forecast1
Irish Residential Market
& Economic Backdrop
• Clear undersupply of housing, with
housing need expected to be twice
supply
• Professionally managed PRS segment in
the early stage of development
• 30% of Ireland’s population is in the 25 -
Available rental stock in Dublin2 44 year age bracket – the highest in the
EU 3
• Population is projected to grow by c.15%
(500,000 people) over the next 15 years
• Strong economic fundamentals, driven
by bio-tech, pharma, IT and other
business services
1 UN Population Growth Forecast; 2 Daft.ie 3 CSO
Modern Asset Base Supporting Resilient Performance
Distribution by Split Distribution by Properties by Distribution by
of Bedrooms1 Average Monthly Rent1 Location1 Age (Years)1
1% 1%
5%
14% 1% 8%
25%
29% 3%
36% 40% 5%
56%
22%
62%
12%
33%
2%
6% 3939
%
%
1 Bed 2 Bed €1,000 to €1,500 €1,500 to €2,000 South Dublin City Centre West Dublin €2,500 North Dublin Cork 11 to 13 14 to 16 17+
✓ Majority of portfolio
formed of spacious ✓ Focus on mid-tier
affordable market, ✓ Existing Portfolio well
diversified across
Dublin in locations
✓ Young, modern, portfolio,
average age of 11.5 years
2-beds which support which is the most
home working resilient segment with amenities and
Favourable for ongoing
good employment
maintenance and capex
requirements
1 As at 30 June 2020
Continuing Strong Growth in 2020
Net Rental Income (€m) Occupancy Net Rental Margin
+39%
50.5 99.8% 81.2% 81.3% 81.4% 79.2%
98.7% 98.3% 97.9%
41.2 +30%
36.3
29.6
FY17 FY18 FY19 H120 FY17 FY18 FY19 H120 FY17 FY18 FY19 H120
Number of Units Total Property Value (€m) NAV per share (cent)
+53% +26%
+81%
3,666 3,739 155
1,359 1,363 150
142
2,679 119
2,450 921
751
FY17 FY18 FY19 H120 FY17 FY18 FY19 H120 FY17 FY18 FY19 H1 20
As of June 2020
Attractive Portfolio in Dublin
Portfolio Overview (including all committed forward purchases)
South Dublin 1,143
36 37 39
Attractive Portfolio City Centre 516
38
Delivering Long-term
Secure Returns 30 31
34
33
West Dublin 920
32
35
North Dublin 926
28 26
West City 409
27
Cork1 50
15 20
Total Owned & Committed2 3,964
17
29
21 18
25 16
42 13
19 14
40
05
41
07
12
23
22 24 10
08 02
06 09
04 03
01 11
1 Not shown on map 2 Portfolio as of June 2020, including pipeline from Merrion, Hansfield Wood and Bakers yard
Strong Execution on a Sustainable Growth Strategy
53% Growth
Significant Unit Portfolioover
Growth over last
12 Month 2.5 years
Period
Pipeline for Future Growth c.20%
DUBLIN
Forward purchases 164
Under construction by IRES 66
Development sites with Planning
543
Permission
TOTAL 773
IRES Proforma Portfolio 4,512
Continuous Focus on ESG
As at 30 June 2020
Key Investment Attractions
Why the Irish Multifamily Sector
Favourable Economic
Population Structural fundamentals Yields on
Demographics Housing Supply and multifamily
and trend towards / Demand Government assets remain
smaller Imbalance Stimulus for attractive
households Covid-19
Why IRES REIT
Attractive Growth Modern Asset Base Robust Balance Sheet Established Effective Capital
Opportunities and strong with strong operating with Strong Liquidity Operating Platform Allocation
execution on strategy metrics
Better living made simple Thank you for your time For more information please visit www.investorrelations.iresreit.ie
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