Landlord Ires sees revenue slip despite rising occupancy levels 

Revenues declined by 3.9% during the first three months of the year following the sale of a number of assets last year

In October last year, Ires completed the sale of 194 apartments and houses in West Dublin for more than €72m. 

Despite increasing occupancy levels, revenues at Ireland’s largest private landlord, Irish Residential Properties REIT (Ires), declined by 3.9% during the first three months of the year following the sale of a number of assets last year.

According to the company’s trading update, ahead of its annual general meeting, the company has seen occupancy levels increase to 99.5% which it said was “underpinned by exceptional demand for rental accommodation”.

Ires said its net rental income margin for the January to March period was “in line with the same period last year”. 

In October last year, Ires completed the sale of 194 apartments and houses in West Dublin for more than €72m.

It said the net effect of the sale was “broadly neutral”, as the proceeds were used to repay higher cost debt and strengthen its balance sheet.

Chief executive of Ires Eddie Byrne said the company had delivered another strong operational performance, with high occupancy levels “demonstrating the high-quality nature of our assets”.

“We continue to believe the medium-term outlook for both the private rental sector in Ireland and the Ires portfolio remains positive, underpinned by strong levels of demand which far outstrip supply,” he added.

Ires is currently undergoing a strategic review which is exploring all options available to maximise value for shareholders.

In an update on the review last month, the board of Ires said a strategy that would require an accelerated sale of all the company’s assets would make it “challenging” to maximise value for shareholders in the short-term.

The company had been under fire for months from a minority shareholder, Vision Capital, which was seeking shareholder approval for resolutions which could see the company and its assets sold. Even though the resolutions were defeated in February, the board of Ires reached an agreement with Vision Capital in early April.

Ires owns close to 3,800 apartments, most of which are located in Dublin aside from a 50-unit block in Harty’s Quay in Cork.