Profits at Irish real estate company Ires Reit more than doubled during the first half of 2018 compared with the same period last year, the company's interim results show.
The firm, which is focused on residential rental accommodation and is Ireland’s largest private landlord, published results for the period from January 1st, 2018, to June 30th, 2018, on Friday.
The firm enjoyed a 13 per cent increase in net rental income to €19.3 million, up from €17.1million last year.
There was also an increase in EPRA (a global real estate index) earnings of 9.8 per cent to €13 million, compared with €11.8 million for the first half of 2017.
As a result, profit for the period increased to €69.5 million from €31 million for the same period the year before. Earnings per share increased to 16.5 cents from 7.4 cents.
The company announced its intention to declare an interim dividend of 2.6 cents per share for the period.
Ires Reit chief executive Margaret Sweeney said the company had delivered "another strong set of results".
“Ires has delivered another strong set of results for the six months period, achieving excellent operating metrics, underpinned by active property management and asset management, as well as further portfolio valuation uplift,” she said.
“We continue to invest in the supply of apartments and houses for rent through a combination of acquisitions and build to let.
“Rental demand remains strong and the supply of residential accommodation remains constrained resulting in a combination of attractive yields and rental growth.
“The prospects for growth in the Irish market remain good and the structural drivers of demand for private rental residential accommodation (population growth, strong inward investment and economic growth and urbanisation) are likely to underpin demand for some time to come, and, coupled with our modern well located existing asset portfolio and our current development opportunities, offer significant opportunities for future growth.’’
Ms Sweeney however pointed to the “severe shortage of accommodation” as a pressing issue for the company.
“Despite continued improvement in output, a severe shortage of accommodation remains the most pressing issue within the housing market,” she said.
“Supply is extremely limited due to a lack of construction and private landlords are exiting the market due to increased regulation.
“This macro environment coupled with our continued investment and professional property management, provides significant opportunities for Ires to continue to grow as the leading private residential company in Ireland.
“Ires is actively expanding its development and investment in response to the significant supply and demand imbalance in the Dublin area. Housing completions in Ireland for 2017 were 14,446 units, against a requirement for between 30,000 and 50,000 units per annum.”
In terms of outlook, the company said the positive economic outlook for the State and the property market “will lead to increased demand in the residential rental sector”.
It is also forecasting “increases in development and intensification opportunities, both of which the board believes should result in continued growth in the performance of the group on a sustainable and long-term basis”.
