Ires REIT makes pre-tax profit of €14.8m on back of rising rents
Irish Residential Properties Reit (Ires Reit) made a pre-tax profit of €14.8m in the six month period to the end of June as it reported a strong in rental income.
This compared to a pre-tax profit of €5.6m compared to the corresponding period last year.
In an interim report published this morning the Dublin-based company saw its gross rental income jump from €2.2m to €11.2m.
During the six month period IRES acquired 362 apartments for a €110.6m bringing its total number of apartments to 1,566.
The average monthly rent for the group increased to €1,364 per apartment compared to €1,250 per apartment during December 2014 and €1,070 per apartment as in June 2014.
Basic earnings per share stood at 4.7 cent for the period and an interim dividend of €969,000 was paid to shareholders at the end of March.
David Ehrlich chief executive of Ires Reit said: "Our portfolio continues to perform extremely well, with 10 to 15pc rental growth on renewals and turnover, virtual full occupancy, and net operating margins over 80pc.
"Given current planning guidelines and the expense of new construction, the costs of building housing makes it difficult for the severe shortage of accommodation to be rectified over the next several years at least."
He added: "This will benefit the company in two ways. First, it helps us to continue our strong operational performance. Second, we have existing properties with between 600 to 650 apartments to be built, which we anticipate being developed in the near future."