Ireland's largest private landlord, Irish Residential Properties REIT (IRES), has initiated a strategic review following the release of its 2023 financial results.
This strategic review, announced last month, aims to explore various strategic options to enhance shareholder value.
The process will be overseen by a board committee led by chair Hugh Scott-Barrett and directors Denise Turner and Phillip Burns, with support from Savills, together with existing international financial advisors and brokers.
Strategic possibilities under consideration include new initiatives, consolidation, mergers, changes in REIT status, share capital sale, the sale of the entire share capital, and value return to shareholders.
The board's decision to conduct this review stems from extensive shareholder feedback and support from the Strategic Review.
While the outcome of the review is uncertain and no specific changes are guaranteed, the company is committed to engaging with shareholders and providing updates, starting before the AGM in May.
IRES confirms there have been no discussions or approaches from potential buyers or counterparties regarding any transaction.
In its 2023 financial report, IRES disclosed a substantial increase in pre-tax loss, reaching €114.5 mln compared to €11.9 mln recorded in the previous year.
Despite experiencing a 3.3% rise in net rental income to €67.9 mln, the negative net movement in the fair value of investment properties more than doubled, to €141.8 mln from €45.6 mln in 2022.
Finance costs surge by nearly 59% to €26.7 mln, attributable to higher interest rates. The portfolio was valued at €1.27 bn at the end of 2023, down from €1.5 bn a year earlier.
CEO Margaret Sweeney commented: ‘We are confident in our continuing focus and progress on optimising our portfolio through asset recycling, including demand for individual units at accretive values, as well as maintaining operational excellence and cost management, and improving the sustainability credentials of our assets.
'We also continue to be focused on leveraging our platform for ancillary revenue, as well as maximising revenue from our existing assets. We intend to maintain an important and active role in the delivery of new housing supply to the Irish market over the long-term. We are confident that our well located, fully serviced, modern energy-efficient residential units represent good value in the current market.’
