Irish Residential Properties REIT plc INVESTOR PRESENTATION NOVEMBER 2019 1
D I S C L A I 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 to rounding. 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 FORMS THE BASIS OF OR BE RELIED ON IN CONNECTION WITH ANY CONTRACT OR COMMITMENT TO PURCHASE SHARES
Highlights 2019 Strategy Backdrop Financial Results H1, 2019 Positive Outlook Appendix – Portfolio Details 3 Investor Presentation Irish Residential Properties REIT plc November 2019
Highlights H1, 2019 Funding Strategy Strong financial performance in the first six months New Syndicated Revolving Credit Facility C.18% increase in Net Rental Income and Earnings o EPRA EPS up 12.9% to 3.5 cents (30 June 2018: 3.1 €450m Facility finalised in April 2019 o o cents.) RCF increased to €600m in June 2019 o €22.5m increase in portfolio valuation, 6% gross yield at o 5 year term to 2024, with option to extend two further o fair value years EPRA NAV per share up 3.5% to 146.9 cents (31 o Lower costs o December 2018: 142.0 cents) Investments in line with our Growth Equity Placing Strategy 85.6m new shares issued in 2 tranches in June/July 2019 o At €1.55 per share Growth of c. 45% since Dec 2018 bringing portfolio to o o Raised €131m (net proceeds) to fund growth strategy 3884 units o Acquisition of 815 unit Marathon Portfolio contracted o June 13 th , 2019, completed August 1 st , 2019 298 units contracted under pre-purchase contracts o In addition development opportunity with Planning o permission received for 200 units Investor Presentation Irish Residential Properties REIT plc November 2019 4
Strategy Backdrop Ireland’s largest private landlord with a strong track record of accretive growth since inception (<2% mkt) Highly attractive market underpinned by strong economic fundamentals, significant demand / supply imbalance and supportive social trends Operational excellence leveraging on ‘best-in-class’ asset and property management expertise of CAPREIT High quality asset base with defensive characteristics supporting strong occupancy levels, and yields Acquisition and development plan associated with a disciplined capital allocation policy Clearly defined and prudent financial policy supported by increased financial flexibility with execution of debt and equity strategy Investor Presentation Irish Residential Properties REIT plc November 2019 5
Strong track record of accretive growth since inception Share Refinanced Increased RCF 815 units Established placement New €250m Increased RCF new €450m to €600m with acquired in CAPREIT Completed 2-year €130m €204m equity €131m, RCF with 5 from €250m to RCF at lower uncommitted Marathon XVI management Public Offering RCF issuance issuance of year tenor €350m interest cost, 7 accordion of portfolio for agreement 172m year tenor €50m €285m shares Hampton Received Successful Wood Agreement 69 Acquired initial Acquired 866 Acquired 410 Acquired 763 173 units planning completion of acquisition 128 units Merrion Acquisition property apartment high-quality high-quality forward permission for Hansfield 1, 99 units €40m Road The Coast 52 portfolio of suites for apartments for apartments for purchases for the units for €47.2m by units €14m 338 units €271.5m €125.5m €172.4m €56.7m development €31.6m Hansfield 2 FP 2021 of 628 units 95 units €30m Equity financing Debt financing Portfolio events Key highlights Total property value (€m) 1 • A strong growth track record, done through acquisitions and more recently forward 1,365 purchases and developments • Prudently financed through a mix of equity and debt financing • Marathon is the largest acquisition to date 921 with 815 units for a total purchase price of €285m 751 685 • Proven ability to integrate assets (including large assets such as Marathon) in short- time frames FY16A FY17A FY18A FY19F 6 Investor Presentation Irish Residential Properties REIT plc November 2019
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