In This Article:
-
Adjusted EBITDA Growth: Increased by 1.4%.
-
Adjusted Earnings Growth: Excluding fair value movements, grew by 8.7%.
-
Revenue Growth: On a like-for-like basis, increased by 1.7%.
-
Net Initial Yield: Stood at 5.1% as of December 31, 2024.
-
Occupancy Rate: Achieved effective full occupancy at 99.4%.
-
Rent Collections: Above 99%.
-
Units Owned: 3,668 units, down 66 from the previous year.
-
Net Loan-to-Value (LTV): 44.4% as of December 31, 2024.
-
Net Rental Income (NRI) Margin: 76.8% for 2024.
-
Financing Costs: Reduced by 12.4% to EUR23.4 million.
-
Adjusted EPRA Earnings: EUR28.9 million.
-
Adjusted EPRA EPS: EUR0.055 per share.
-
Profit on Disposals: EUR1.6 million.
-
Final Dividend Proposal: EUR0.022 per share.
-
Average Cost of Interest: 3.79% for 2024.
-
Portfolio Average Monthly Rent: EUR1,814.
-
Reversionary Potential: Current rents approximately 18% below market.
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Irish Residential Properties REIT PLC (RSHPF) returned to earnings growth in 2024, with adjusted EBITDA earnings increasing by 1.4%.
-
The company achieved effective full occupancy at 99.4% and rent collections above 99%, demonstrating strong operational performance.
-
A strategic asset recycling program resulted in the sale of units at a premium, contributing to an 8.7% growth in adjusted earnings excluding fair value movements.
-
The company plans to continue paying 85% of property rental income as a dividend to shareholders, maintaining a stable return.
-
A EUR5 million share buyback program is set to be launched, funded from excess reserves, reflecting the company's strong financial position.
Negative Points
-
The current rent regulation structure, with a 2% cap on rental increases, is negatively impacting the business and the supply of housing in Ireland.
-
Adjusted EBITDA reduced by 5% due to the impact of the asset recycling program and previous asset disposals.
-
A reduction of EUR33.7 million in the value of assets was recorded, primarily due to yield expansion in the first half of 2024.
-
Non-recurring costs of EUR3.4 million were incurred, including expenses related to shareholder activism and strategic reviews.
-
The regulatory environment remains a challenge, with rent regulations set to expire in December 2025, creating uncertainty in the market.
Q & A Highlights
Q: Can you provide more details on the cost management initiatives that supported the NRI margin expansion in H2 2024, and what is the outlook for 2025? A: Eddie Byrne, CEO: The NRI margin improvement was due to numerous small initiatives, such as exiting the Cork market, centralizing contracts for better economies of scale, and focusing on cost base management. We expect this improvement to continue in 2025. Brian Fagan, CFO: We counteracted embedded inflation and the impact of disposals, aiming to maintain and improve margins into 2025.