Wednesday 17 January 2018

IRES reports surge in net income to more than €5m

Photo: Bloomberg
Photo: Bloomberg

Irish food producer Glanbia was the day's biggest winner by on Wednesday, with gains of 6pc. Shares in the company had fallen by 5.5pc on Tuesday ahead of the company's Q3 interim statement. However, investors responded positively to the release after the results showed that company revenues rose by 2.4pc in the first nine months of the year.

Kerry Group was also up, with the dairy giant's shares boosted by 5.4pc after the company said revenues had grown by 0.4pc despite a challenging environment caused by currency fluctuations and continued uncertainty surrounding the long-term implications of Brexit.

IRES Reit, the State's biggest private sector landlord, has seen a massive increase in net income from its residential rental business following its acquisition in the past 12 months of several hundred additional apartments in Dublin.

The company's latest trading update covering the three-month period to the end of September shows net income grew to €5.5m, compared to the €3.6m recorded in the same period last year.

Key to IRES' growth has been the addition to its portfolio of €180m in income-producing assets within the past year, in locations including Tallaght Cross and Elm Park.

Commenting on the company's latest figures, analysts at Goodbody said: "IRES has continued to maintain extremely strong occupancy levels of approximately 99pc and is generating strong rental growth across assets during renewals and turnovers".

IRES shares closed up just over 1pc.

Elsewhere, European shares were on track for their eighth straight day of losses on Wednesday, falling on jitters ahead of the US presidential election next week and a drop in A.P. Moller-Maersk after results.

The STOXX 600 index dropped 0.5pc, its lowest level since July 11, with almost every sector in negative territory.

Wall Street and Asian shares fell after US voter polls showed Republican Donald Trump was closing the gap on Democrat Hillary Clinton ahead of next Tuesday's election.

Europe's VSTOXX volatility index reflected this nervous sentiment, hitting its highest level since July.

Banking stocks were the heaviest fallers by sector, dropping 1.6pc and extending their losses from the previous session, with Italian lender Banco Populare and Standard Chartered among the biggest decliners.

Container shipping firm AP Moller-Maersk slumped more than 9pc after earnings missed forecasts.

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