Publicly-quoted property investment fund, Irish Residential Properties REIT (I-RES) has said it has more than €150m to spend on boosting its portfolio, adding that it has a strong pipeline of future acquisitions available through Nama and private market opportunities.
At the start of this year, I-RES signed a new five-year revolving credit facility of up to €250m, which can be extended to €350m, but some commentators have suggested the company may need to raise extra cash in the next six-to-12 months if it means to go after any remaining Nama assets.
The company — which spent nearly €154m on property in the first half of the year — yesterday reported a 67% annualised rise in profits for the first six months of the year to €24.7m, with revenues up from €11.2m to €17.9m.
“We are the largest non-governmental landlord in Ireland, with 2,288 apartments. We continue to grow our bottom line and expect growing and secure dividends going forward, derived from professional management and the quality of the portfolio,” said chief executive David Ehrlich.
“Many investors have commented the portfolio is the best they have seen anywhere. We are also excited about our development opportunities. All of this bodes well for the continued growth of I-RES,” he added.
The firm expects to see increased demand in the residential rental sector.
Average rents at I-RES properties grew by an estimated 2.6% in the first half and a large portion of the portfolio is either due for rent renewal or market launch next year.
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