Real Estate
Home›Real Estate›REITs›IRES expects Ireland residential rent rules to lift va…
IRES expects Ireland residential rent rules to lift valuations
IRES said its total accounting return rose to 6.8% in the first half, and its net rental income margin improved to 78%.
Irish Residential Properties REIT, IRES, expects the benefits of new residential rent regulations to feed through into portfolio valuations and shareholder returns as the housing recovery gathers pace, according to Bisnow. In an interview with Bisnow after the company released its first-half results, IRES CEO Eddie Byrne said operational performance improved as the rental rule changes began to take effect. IRES reported that its total accounting return increased to 6.8% from 2.8% a year earlier, while EPRA earnings per share rose 5.8% in the first half. The REIT also cited stronger rent and profitability metrics, including a 2.1% increase in like-for-like annualised passing rents and an improvement in its net rental income margin to 78%. Byrne said the stronger operating performance is starting to show in valuation changes, though IRES is still trading below net asset value as the gap narrows. IRES reported that net asset value per share rose 5.4% to 139 cents. The company also announced the acquisition of 77 new homes, forward-funded using proceeds from its ongoing asset recycling programme, and said it plans to stay selective with acquisitions and pursue more forward-funding deals.