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Ires portfolio 'still conservatively valued'

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High-end: Ires’s Marker Apartments at Grand Canal Square in Dublin

High-end: Ires’s Marker Apartments at Grand Canal Square in Dublin

High-end: Ires’s Marker Apartments at Grand Canal Square in Dublin

The property portfolio of the largest private landlord in the State, Ires Reit, is "conservatively valued" when compared to similar markets, according to analysts.

Ahead of the company's results today, Colm Lauder of Goodbody Stockbrokers said there is still the potential for net asset value (NAV) growth in Ires as yields align with "European norms" and it benefits from increasing rental income.

The key driver from a NAV perspective is the €40m in anticipated revaluation gains, according to Mr Lauder. Meanwhile, the company's rental income for last year is expected to top €47m, a 15pc increase on 2018.

However, Mr Lauder warned that the political landscape in Ireland has changed since the last valuation and the forward outlook is more unstable.

During the general election, considerable focus was placed on the housing crisis, in particular the rental market, with Sinn Féin proposing a three-year rent freeze.

"While the make-up of Government is still uncertain, given the momentum behind the rent freeze, we expect more stringent rent controls to feature in any programme for Government," Mr Lauder continued.

"If rental growth is lower, this will inevitably temper future capital growth," he added.

Headed by Margaret Sweeney, Ires set up here after the crash, buying up almost 3,000 homes in Dublin, mainly by snapping up entire apartment blocks.

It is now the country's biggest private sector landlord.

Its portfolio ranges from the super-high-end Marker apartments at Grand Canal Square in Dublin's docks and Elmpark, close to St Vincent's Hospital and RTÉ in Dublin 4, to modern developments in Tallaght and Inchicore in Dublin, and Harty's Quay in Cork.

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