It has been another positive week for shareholders in Ires Reit as they made a number of big announcements concerning recent purchases and profits made by the company.
As Irelands largest private property holder everything seems to be positive at the moment. Profits have almost doubled in the last year. With property and rent prices seeing no sign of declining spokespeople for the company had a very positive outlook for the future of the company.
With a portfolio of over 2,800 units and almost 100% occupancy in 2018, Ires saw huge profits. In its most recent statement to the Irish stock exchange, the company confirmed its acquisition of 52 apartments in the Baldoyle area for close to $14million. This included 61 car parking spaces according to the Irish Indepndent.
Shares in Ires Reit rose this week as they predicted “significant” demand for an additional 800 units they have set to go on the market over the next few years. With almost 100% occupancy this is not an exaggerated prediction.
With the housing and rent crisis showing no signs of abating, any stakeholder especially as large as Ires Reit is in a good position. One of our recent reports showed how the CSO figures showed an annual rent increase of over 6%
The Irish Examiner reported that Ires Reit charged an average monthly rent of €1,599, up 5.4% from 2017. Profits climbed €119.8m from €65.1m in the previous year.
“The prospects for growth in the Irish market remain good, resulting in a combination of attractive yields and rental growth,” said CEO Margaret Sweeney.
“Looking forward, the structural drivers of demand for private rented residential accommodation (population growth, strong inward investment, and economic growth and urbanisation) are likely to underpin demand for some time to come.” noted the
Ires was set up after the economic crash and took advantage of diminishing house and rental prices during the recession. This has allowed it to become the largest private property holder in the country.
An Irish Independent report described
Ires is listed on the Irish stock exchange and it was during an announcement to the exchange that most of this week’s revelations came about. Originating in Dublin and focusing on this market, Ires has made suggestions it will look into other areas into the near future. Primarily the urban areas of Cork, Galway and Limerick.
This is most likely due to stagnating prices in the capital and increase in rural areas.
Another way which Ires has been able to make huge gains this year is by keeping costs low. It does this through a number of methods but primarily by keeping costs in a house and scaling rapidly.
Ms Ssweeny said the company will continue to invest in new built-to-let projects and also continued acquisition one of which we will look at below.
New purchases The Marker Residences
Showing more positive indicators for Ires, the Marker residences which were purchased in 2014 for €50.1m in 2014, have been recently revalued at €72.3m — a near 45% rise in value in four years.
The 85 apartments at Grand Canal Square command the highest rents in the Ires portfolio according to the Times. With an average of €1600, this premier apartments can earn up to €2700 per month.
Ires predictions come on the back of ever-increasing demand, especially as Ireland’s economy continues to grow. That coupled with a lack of supply in the housing market are all clear indicators that having shares in the company will only be of benefit.
Margaret Sweeney said “Rental demand remains strong and, whilst it is beginning to increase slowly, the supply of residential accommodation remains constrained. The prospects for growth in the Irish market.
For anyone interested in property or ways to get onto the property ladder, looking at companies such as Ires Reit and how the operate is one way to go.
By being observant to the market and taking advantage of supply and demand issues the company has constantly been able to add to its portfolio.
As a final act of good will to its shareholders Ires Reit also announced that it would be adding 3 cents to its dividends for 2018. This will no matter much to shareholders though as they continue to see profits and acquisitions as we continue into 2019.