Irish Residential Properties REIT plc May 2020 2019 YEAR END RESULTS – CONFERENCE CALL 1
D I S C L AI M E R Cautionary Statements This presentation has been prepared by Irish Residential Properties REIT PLC (the “Company” or “I - RES”) for information purposes only. This presentation has been prepared in good faith but the information contained in it has not been independently verified and does not purport to be comprehensive. The Company is not undertaking any obligation to provide any additional information or to update this presentation or to correct any inaccuracies that become apparent. This presentation is neither a prospectus nor an offer nor an invitation to apply for securities. The information contained in this presentation is subject to material updating, completion, revision, amendment and verification. Any prospective investor must make its own investigation and assessments and consult with its own adviser concerning any evaluation of the Company and its prospects. No representation or warranty, express or implied, is given by or on behalf of the Company, its group companies, IRES Fund Management Limited (“IRES Fund Management”) or any of their respective shareholders, directors, officers, employees, advisers, representatives, agents or any other persons as to the accuracy, completeness, fairness or sufficiency of the information, projections, forecasts or opinions contained in this presentation. Save in the case of fraud, no liability is accepted for any errors, omissions or inaccuracies in any of the information or opinions in this presentation and neither of the Company or IRES Fund Management, nor any of their employees, officers, directors, advisers, representatives, agents or affiliates, shall have any liability whatsoever (in negligence or otherwise, whether direct or indirect, in contract, tort or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. Certain financial and statistical information contained in this presentation is subject to rounding adjustments. Accordingly, any discrepancies between the totals and the sums of the amounts listed are due torounding. This presentation contains forward-looking statements which can be identified by the use of terms such as "may", "will", "should", "expect", "anticipate", "project", "estimate", "intend", "continue", "target" or "believe" (or the negatives thereof) or other variations thereon or comparable terminology. Such forward-looking statements are based on the beliefs of its management as well as assumptions made and information currently available to the Company. Forward-looking statements speak only as of the date of this presentation and the Company and IRES Fund Management expressly disclaim any obligation or undertaking to release any update of, or revisions to, any forward-looking statements in this presentation, including any changes in its expectations or any changes in events, conditions or circumstances on which these forward-looking statements are based. Due to various risks and uncertainties, actual events or results or actual performance of the Company may differ materially from those reflected or contemplated in such forward-looking statements. No representation or warranty is made as to the achievement or reasonableness of, and no reliance should be placed on, such forward-looking statements. There is no guarantee that the Company will generate a particular rate of return. To the extent indicated, certain industry, market and competitive position data contained in this presentation come from third party sources. Third party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. While the Company believes that each of these publications, studies and surveys has been prepared by a reputable source, neither the Company nor IRES Fund Management have independently verified the data contained therein. In addition, certain of the industry, market and competitive position data contained in this presentation may come from the Company’s own internal research and estimates based on the knowledge and experience of the Company and IRES Fund Management in the Irish market. While the Company believes that such research and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change. Accordingly, undue reliance should not be placed on any of the industry, market or competitive position data contained in this presentation. THIS PRESENTATION DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER FOR SALE OR SOLICITATION OF ANY OFFER TO BUY ANY SECURITIES NOR SHALL IT OR ANY PART OF IT FORM THE BASIS OF OR BE RELIED ON IN CONNECTION WITH ANY CONTRACT OR COMMITMENT TO PURCHASE SHARES 2
Highlights 2019 Trading Update May 2020 2019 Financial Results Assets Portfolio and Growth Strategy ESG Strategy 3
IRISH RESIDENTIAL PROPERTIES REIT plc Trading Update May 2020 4 6
I•RES REIT - Key Investment Attractions Attractive Market Backdrop Modern Asset Base with Robust Balance Sheet Established Operating Effective Capital & Growth Opportunities strong growth potential with Strong Liquidity Platform Allocation • • • Ireland - c. 20% projected Portfolio of 3,739 1 high- Average interest rate • • Leveraging knowledge, Strategic deployment of population growth by 2040 quality, modern assets. below 2.0% expertise and technology capital since IPO to grow of CAPREIT portfolio • High housing demand • • Pipeline potential of Long term laddered (supply shortage) • • Established platform with Generated stable, growing c.20% but delivery delays maturity of debt ranging 65 personnel in Dublin dividends and NAV • Strong presence of due to Covid-19 from 2024 to 2032 appreciation international IT and • Occupancy of 99% at 30 • Located in desirable areas • Diversified sources of Pharma companies as • April 2020 Acquisition and in Dublin funding well as Food/Agri and development plans to • 81.4% Net Rental • Business Services Average asset age of strategically grow portfolio Income margin in 2019 c.11yrs 2 • further Attractive place to live • Gross yields of 5.6% 2 Delivering Progress Across Key Performance Indicators Since IPO 3 No. of Units Dividend per Share EPRA NAV per Share EPRA EPS €1.546 € 0.995 3,666 6.9 cents 5.8 cents 1,204 1.6 cents 0.68 cents 2019 2019 2014 2019 2014 2019 2014 2014 5 1 As at 30 April 2020 2 As at 31 December 2019 3 As at financial years ending 31 December 2014 and 2019
Current macro environment challenging and uncertain as a result of Covid-19 • Significant Government income supports in place for workers and employers experiencing job disruption due to Covid-19, which provides some assistance to tenants during these challenging times to maintain their rental payments. In addition to the Pandemic Unemployment payment, a temporary wage subsidy scheme commenced on 26 March 2020 for a 12 week period • A suspension on evictions and rent increases introduced for the duration of the Covid-19 emergency period, 3 months from 27 March 2020. The current rent regulation, which provides for rent increases of up to 4% per year in rental pressure zones, remains in place until 31 December 2021 • Non-essential construction sites closed for 7 weeks until 18 May 2020 with social distancing and other requirements pertaining after this date. This has resulted in construction activity on the Company's active development sites and forward purchase contracts being temporarily suspended with delays to completion of developments including Hansfield Wood, Merrion Road and Bakers Yard • Economic outlook unclear and economic forecasts continue to evolve as Ireland responds to the Covid- 19 pandemic • The Government has put in place a five-stage plan to reopen Ireland’s economy and society in a phased manner, from 19 May 2020 to 10 August 2020 6
Managing through Covid-19 uncertainty Net Rental Income Margin % Operational Highlights • Trading to April 2020 in line with expectations, however, Covid-19 uncertainty continues, particularly surrounding governmental measures taken and economic impacts • Net rental income margin remained strong at 80.7% in Q1 2020 • Demand remains robust, with occupancy of 99% at 30 April 2020 1 • Residential rent collection rates of 98% in April 2020 Occupancy % • Took delivery of 55 units at Waterside and 18 units at Tallaght Cross West during Q1 2020, bringing the total units owned to 3,739 100 99.8 99.8 99.0 98 98.3 • In relation to our tenants, we have enhanced cleaning and disinfecting at all properties as 96 well as an extensive programme of communication 94 • Adapting and innovating for post Covid-19 world: enabling Wi-Fi in all properties to support 92 working from home, larger apartment sizes with balconies dominate portfolio 90 2017 2018 2019 Apr-20 Number of Units Financial Highlights • Strong financial position, with a robust balance sheet and strong liquidity position • Dividend strategy continues, with a final dividend for the year ended 31 December 2019 of €16.2 million, paid on 23 March 2020 7 1 This number excludes the units which have been made available to health service staff for the period of the Covid-19 crisis.
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