The company sold 66 units last year, as part of a strategic review, generating €19m. In a trading update today Ires Reit said it has a further 12 in the pipeline for disposal in the near term.
“We remain confident we will complete the disposal of at least 50 units in 2025, at an average sales premium of between 15pc and 20pc, having had a strong start to the year delivering premia in excess of this range,” it said.
The gain versus book value means buyers are paying more for the apartments than the valuation assigned to them on the firm’s books.
Ires came under ferocious pressure in 2023 from a group of activist shareholders who insisted that management take action to lift the company’s share price, which had been trailing the value of the company’s 4,000 rental units.
The company said its portfolio of properties continues to be fully occupied, in practical terms, with a 99.7pc rate in the first quarter of the year, similar to the 99.4pc occupancy rate in the last quarter of 2024. This shows the “exceptional demand for rental accommodation in Ireland”.
Net Rental Income also continued to improve. Ires said it is continuing to implement other income-generating and cost-reduction initiatives that were identified in the strategic review.
“We are successfully executing initiatives which capitalise on our significant and previously underutilised real estate footprint, such as car parking, and other services across the portfolio, which are reflected in the strong NRI performance,” it said.
The company added that it continues to be supported by highly recurring cash flows and strong rent collections that remain in excess of 99pc.
Eddie Byrne, the chief executive, said: “The execution of our recycling programme is in line with our expected timeframe and will further strengthen our financial position. The successful completion of the refinancing in the period will bolster our position in the market, delivering additional capital and significantly increased flexibility, positioning us well to play a part in the delivery of much needed new rental accommodation.
“Consistent with our capital allocation strategy, and also recognising the current discount between the company’s share price and its net asset value per share, we completed a share buyback programme, successfully returning €5m to shareholders.”
Mr Byrne said the company would continue to concentrate on value accretive capital allocation strategies as long as the share price trades at a steep discount to net asset value.
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