Ireland's largest private landlord Ires Reit reports strong quarter ahead of company AGM

The Republic's largest private landlord reported revenue growth of 5% in the first three months of 2023

Photograph: Sam Boal / RollingNews.ie

Irish Residential Properties REIT has reported "continued strong growth" in the first quarter of 2023, despite a challenging economic backdrop.

Operating across Cork and Dublin, the Republic's largest private residential landlord said the Irish market "continues to exhibit strong fundamentals," with occupancy levels at IRES' properties in excess of 99%.

The company's Q1 revenue rose by just under 5% year-on-year, which the company said was driven by additions to its portfolio and organic growth. IRES also reported strong rent collections in excess of 99%, in line with 2022.

“I-RES has continued with its sector-leading performance in the first quarter of 2023 with continued growth in rental income and market-leading occupancy across the portfolio," said company chief executive, Margaret Sweeney.

"The macro-economic environment of rising interest rates and inflation continues to weigh heavily on listed real estate company valuations. However, I-RES remains well positioned to navigate this with our high-quality portfolio, disciplined capital allocation and successful execution of its strategy, delivering consistent returns to our shareholders over the long term.”

With a portfolio of more than 4,000 homes, the company also engaged in a number of disposals, including the selling of its Rockbrook development site in Dublin. In total, gross proceeds from sales amounted to €18m.

Despite continued revenue growth, the company is facing backlash from key shareholders, with international investment group, Vision Capital issuing an open letter to IRES shareholders, urging them to vote against certain directors at the company's 2023 AGM which takes place tomorrow.

Speaking in the letter, Vision Capital said the company had "increasingly become an ineffective platform and continues to poorly address the interests of both its shareholders and the critical needs of the Irish housing market."

Owning approximately 5% of the company, Vision Capital has urged IRES to cease operations as public company and continue to operate privately with a different corporate and capital structure.

Loan to Value of IRES' Portfolio decreased slightly to 43.1% from 43.3% at the end of the first quarter.