Growth and Opportunity Profile Irish Residential Properties REIT plc - PDF document

Irish Residential Properties REIT plc Report and Financial Statements For the period 2 July 2013 (date of incorporation) to 31 December 2014 Growth and Opportunity

Profile Irish Residential Properties REIT plc (the “Company” or “I-RES” ) is a growth-oriented Real Estate Investment Trust (“REIT”) that owns 1,474 apartment suites in Dublin, Ireland. As one of the largest non-governmental residential landlords in Ireland, the Company is focused on acquiring and professionally managing interests in multi-unit rental residential properties in Ireland. The Company’s shares are listed on the Irish Stock Exchange (ISE: IRES). For more information, please visit the Company’s website at www.iresreit.ie. On the cover (from left to right): Lansdowne Gate, Charlestown, Beacon South Quarter, Camac Crescent.

Lansdowne Gate Contents Review Governance Financial Statements 2 Financial and Operating Highlights 24 I-RES Board of Directors 51 Independent Auditors’ Report to 4 I-RES at a Glance 26 CAPREIT and IRES Fund Management the members of Irish Residential 6 Chairman’s Statement Senior Management Properties REIT plc 9 Chief Executive Officer’s Statement 27 Corporate Governance Statement 56 Statement of Financial Position 13 IRES Fund Management, Investment 33 Report of the Audit Committee 57 Statement of Profit or Loss and Advisor and Property Manager’s 35 Report of the Remuneration Committee Other Comprehensive Income Statement 38 Report of the Nomination Committee 58 Statement of Changes in 14 Portfolio Overview 39 Report of the Directors Shareholders’ Equity 20 Investment Policy and Strategy 50 Statement of Directors’ Responsibilities 59 Statement of Cash Flows 60 Notes to Financial Statements 78 Glossary of Terms 78 Forward-Looking Statements 79 Shareholder Information 1 Irish Residential Properties REIT plc Report and Financial Statements

Financial and Operating Highlights Strong Market Demand Continued shortage of housing supply helps support the rental market Ireland Dublin HOUSING HOUSING REQUIRED REQUIRED HOUSING HOUSING 2011 – 2021 2011 – 2021 STARTS STARTS 18,000 8,000 2013 2013 >4,500 838 ANNUALLY ANNUALLY ANNUALLY ANNUALLY Solid Organic Growth Operating performance since acquisition Initial Portfolio at acquisition in September 2013 Initial Portfolio as at 31 December 2014 Total Portfolio Average Monthly Rent Occupancy NRI Margin (Initial Portfolio) (Initial Portfolio) €1,117 93% 100% 81% 77% €900 for H2 to Sept 2014 (2) 2014 (1) 71% Initial Portfolio Total Portfolio (1) For the period 2 July 2013 to 30 September 2014 (2) For the six months to December 2014 2 Irish Residential Properties REIT plc Report and Financial Statements

•฀ Maiden฀interim฀dividend฀of฀0.48฀cent฀per฀share฀ •฀ Entered฀into฀a฀two-year฀€130฀million฀credit฀facility฀ •฀ 81%฀net฀rental฀income฀margin฀for฀the฀six฀months฀ •฀ Issued฀215,000,000฀ordinary฀ •฀ Entered฀into฀pipeline฀agreement฀with฀CAPREIT฀LP฀ •฀ High-quality฀portfolio฀of฀1,204฀residential฀suites฀ •฀ Completed฀initial฀offering฀on฀16฀April฀2014 Highlights Highlights to 31 December 2014 since 31 December 2014 •฀ Deployed฀net฀proceeds฀from฀initial฀offering฀and฀ shares raising gross proceeds borrowings under credit facility within six months of €215 million •฀ Strategic฀acquisition฀of฀the฀ valued at €323.6 million as at 31 December 2014 Rockbrook Portfolio consisting of 270 residential suites on 15 August 2014 •฀ Repaid฀€113฀million฀of฀the฀ •฀ 10%฀to฀15%฀increase฀in฀average฀rental฀income฀ credit facility on renewals and turnovers ended 31 December 2014 paid on 31 March 2015 Financial Highlights For the period 2 July 2013 to 31 December 2014 (1) Revenue € 9.7 m Gross Initial Yield 6.1% Net Initial Yield 5.0% Net Profit € 7 .9 m Loan to Value 37 .6% EPRA NAV per share € 0.995 Pro-forma NAV per share € 1.032 Occupancy Rate 99.7% Average Monthly Rent € 1,250 (1) Trading since September 2013 3 Irish Residential Properties REIT plc Report and Financial Statements

I-RES at a Glance Well-located Properties I-RES has built a property portfolio of 1,474 high-quality residential apartments/ suites in Dublin 8 9 6 1 4 10 1 2 Kings Court Grande Central 5 2 3 7 11 3 4 5 Priorsgate Camac Crescent The Laurels 6 7 8 9 10 11 The Marker Beacon South Charlestown Bakers Y ard Lansdowne Gate Rockbrook Portfolio Quarter 4 Irish Residential Properties REIT plc Report and Financial Statements

PROPERTY PORTFOLIO Building Date Number of Property Location Y ear Built Class Acquired Suites Owned 1 Kings Court Smithfield 2006 Luxury 10 Sep 2013 83 2 Grande Central Sandyford 2007 Luxury 10 Sep 2013 65 3 Priorsgate Tallaght 2007 Luxury 10 Sep 2013 102 4 Camac Crescent Inchicore 2008 Luxury 10 Sep 2013 90 5 The Laurels Tallaght 2007 Mid-tier 27 Jun 2014 19 6 The Marker Docklands 2012 Luxury 18 Jul 2014 84 7 Beacon South Quarter Sandyford 2007/2008 Luxury 7 Oct 2014 217 8 Charlestown Finglas 2007 Luxury 7 Oct 2014 235 9 Bakers Yard Portland Street North 2007/2008 Mid-tier 7 Oct 2014 85 10 Lansdowne Gate Drimnagh 2005 Luxury 7 Oct 2014 224 T otal owned portfolio as at 31 December 2014 1,204 11 Rockbrook Portfolio Sandyford 2007 Luxury 31 March 2015 270 T otal properties owned as at the date of this Report 1,474 Investment Proposition • Experienced investment advisor and property manager with a track record of growth and value creation in the residential sector • Market offering many growth opportunities from a variety of different sellers • Proven acquisition acumen in the residential sector • Strong leadership team specialising in residential real estate • Dedicated local team of 20 experienced staff in the new Dublin office, supplemented by the CAPREIT platform • Clearly defined four-pillar business strategy 5 Irish Residential Properties REIT plc Report and Financial Statements