State's largest private landlord Ires REIT completes 'strategic exit' of Cork market 

Company said that a focus on the greater Dublin area will 'maximise efficiencies and its future operating leverage'

High occupancy levels and exceptional demand for rental accommodation have kept the Irish Residential Properties REIT (Ires) in a "strong financial position," the State's largest private landlord has said. 

In a trading update published on Friday, the company said it is on course to deliver a full-year net rental income margin of almost 77%, which is broadly in line with last year's. 

Occupancy levels across Ires' portfolio remained strong at 99.4% at the end of September, down marginally from the 99.6% recorded in June this year. 

This occupancy reflects the "high quality of our properties, the efficiency of our operating platform, and the exceptional demand for rental properties in Dublin," the company said.

It added that it remains in a "strong financial position," underpinned by a robust balance sheet. 

Ires has now completed a strategic exit from the Cork market, calling this "an important step" towards improving cost structures and margins. 

"Focusing on the greater Dublin area maximises efficiencies and the future operating leverage of the Group," it said on Friday. 

The landlord said it has made significant progress in advancing initiatives decided in its Strategic Review which concluded in August, including the disposal of 37 units in total as part of the previously announced target of 315 units, selling 20 assets in line with book value in a bulk sale and selling a further 17 units to individual purchasers achieving sales premiums of around 25%.

The company now expects to complete the disposal of at least a further 50 units in 2025, at an average sales premium of between 15% and 20%. In total, the above disposals are expected to generate total gross sales proceeds of between €35m and €37m, Ires added.

It said it is also in the early stages of implementing additional income-generating and cost-reduction initiatives as identified in the Strategic Review and has successfully executed initiatives across around 4% of the portfolio.

“We are pleased to report strong progress with our strategic review initiatives and are encouraged by the positive momentum of the business," said chief executive, Eddie Byrne. 

"The execution of our recycling programme is ahead of our expected timeframe and will further strengthen our financial position. 

"While we will continue to consider all opportunities to enhance shareholder value, we are confident about the long-term market opportunity which is underpinned by our high-quality portfolio and market-leading operating platform.”

Shares in Ireland’s biggest private landlord slumped to an all-time low this week, even as home prices continue to rise and interest rates trend downwards.