IRES revenue up to €17.9m as margin dips
Revenue at Irish property investment firm IRES increased to €17.9m in the first six months of the year, up 59.8pc on the same period last year.
The firm's rental income margin during the period fell to 78.4pc, down from 80.6pc, while the overall occupancy rate dipped to 98.3pc.
In January the company signed a new five-year revolving and accordion credit facility worth up to €250m.
During the first half of the year IRES also completed the acquisition of 674 apartments for a total cost of €153.6m. It also began construction on 68 apartments at Beacon South Quarter in Sandyford.
The firm was positive on its outlook, citing strong market demand and a supply shortage, both supplementing the rental market.
IRES chief executive David Ehrlich was pleased with trading in the opening half of the year.
"We continue to grow our bottom line and expect growing and secure dividends going forward, derived from professional management and the quality of the portfolio.
"Many investors have commented that the portfolio is the best they have seen anywhere. We are also excited about our development opportunities. All of this bodes well for the continued growth of IRES," he said.
The property firm also outlined its capacity for further acquisitions, which is over €150m. IRES said it has a strong pipeline of acquisitions available through both Nama and private market opportunities.
Davy analyst Ray Crowley said IRES continues to generate "attractive income returns".
"We think that the development programme at Sandyford will prove to be highly accretive to net asset value (NAV) in time."