Business
Landlord Ires Reit back in profit and increases revenues despite selling some units
DCM Editorial Summary: This story has been independently rewritten and summarised for DCM readers to highlight key developments relevant to the region. Original reporting by Irish Times, click this post to read the original article.
The State’s biggest private landlord – publicly listed Ires Reit – says strong demand for rental properties continues as it reported higher revenues and profits on the back of rising rents last year.
The Dublin-listed company said its average monthly rent in 2025 rose 2.1 per cent last year to €1,852, lifted by a combination of asset recycling, its retrofit programme and focused management of renewals.
Ires has sold off some of its lower-value properties and embarked on a programme to retrofit suitable low-energy-rated properties when they became vacant.
The company reversed a €6.7 million loss in 2024 to deliver a pretax profit of €49.7 million last year, primarily on the €17 million gain in the fair value of its investment properties. Revenues were 0.2 per cent higher at €85.5 million for the 12 months.
Earnings grew by 1.5 per cent over the period, with adjusted earnings as measured on a basis set out by the European Public Real Estate Association (EPRA) rose to €29.4 million, while EPRA earnings per share were up 2.3 per cent to 5.6 cent.
Net rental income was almost 2 per cent higher at €66.7 million, despite Ires Reit’s sale of 3 per cent of the portfolio in the past 18 months.
Chief executive Eddie Byrne said the company was pleased with its performance.
“We’ve managed to maintain our revenue and actually increase it ever so slightly, despite the fact that we sold a number of units and obviously we’re subject to the rental cap,” he said.
“More importantly, on our net rental income margin, growing that by 120 basis points [1.2 percentage points] year on year as a result of a pretty clear focus on how we manage our costs within the business, we think that’s been a pretty strong result.”
Adjusted earnings rose 7.4 per cent to €32.8 million, excluding the fair value adjustments of the portfolio.
Byrne said that rise was down to a combination of the operational performance and the success of its disposal programme, where it generated a premium over its book values of €3.4 million.
“At that level, the business has had a strong year, building on the momentum that we started in the second half of 2024, and into the first half of 2025.”
The company also refinanced its debt with new five-year facilities and converted its revolving credit facility into a loan that tied financing costs to sustainability performance.
Its total dividend for the year rose almost 20 per cent to 4.89 cent per share.
Ires said its loan-to-value ratio had dropped to 43.6 per cent, while its occupancy remained high at 99.5 per cent for the year.
The company has largely welcomed planned changes to the rental market announced by the Government.
Under current rules, rental increases are limited to 2 per cent or consumer price inflation, whichever is lower. That impacted potential rent increases in the first half of 2025, Ires said.
The changes will, from March 1st, allow landlords whose properties become vacant to reset rents to market rates. Existing leases will be unaffected. New tenancies signed after March 1st will be subject to a minimum duration of six years, giving tenants greater security.
Byrne said he expected the majority of its tenants to be unaffected by the rental changes. “We only expect 10 per cent of our portfolio to turn over on an annual basis, so it’s only that 10 per cent that will reset back to market [rates].”
Looking ahead, Byrne said there was a “significant consolidation opportunity” in the market, with Ires looking at reinvesting the proceeds of its disposals – some €30 million – back into properties.
“We think those opportunities are starting to appear in the market and we have a pretty healthy pipeline of opportunities that we’re considering,” he said.
“We’ll use the capital that we’ve internally generated to reinvest in the market. As the year goes forward, we will look at the opportunities that present themselves and we will look to see how we might participate in acquiring some of those properties, be it through strategic partnerships or other mechanisms.”
