Irish Residential Properties REIT Plc Provides Strategic Review Update

Irish Residential Properties REIT plc (I-RES) issued an update on its Strategic Review initiated on January 8, 2024. The Strategic Review began after the announcement of the Company’s Full Year Financial Results on February 23, 2024. This review, directed by a Board sub-Committee led by Chair Hugh Scott-Barrett, CEO designate Eddie Byrne, and non-executive directors Denise Turner and Phillip Burns, aims to explore strategic options to maximize shareholder value.

The assessment thus far has positively reflected on I-RES’s portfolio quality and its strong operational performance which align with favorable medium-term market prospects driven by expected population growth and PRS demand. However, the company acknowledges considerable short-term challenges, such as higher interest rates and a restrictive regulatory environment. This includes a cap on rental growth contributing to subdued current market conditions and transaction volumes, notably lower than the historical average, which might complicate outright asset sales strategies.

Under the continuous Strategic Review, new potential revenue streams, such as car parking fees, and strategic asset sales aimed at enhancing shareholder value are being explored. Further, as I-RES evaluates its structure under the ongoing Department of Finance consultation, the future flexibility and strategic positioning of the company could see changes depending on the review outcomes expected in late 2024.

I-RES reiterates its commitment to maximizing operational efficiency and capital recycling for value improvement. It anticipates engaging with shareholders in the upcoming AGM on May 10, 2024, followed by an additional update in August for the 2024 Interim Results.