Iris Reit generates €30.8m profit on ‘strong rental growth’

Property group had net assets worth €435 million at the end of December


Property investment company, Iris Reit, generated a pre-tax profit of €30.8 million last year, up from €7.9 million in 2014, on the back of strong rental growth and high occupancy levels.

The group said it had net assets worth €435 million at the end of December, up from just over €200 million in 2014.

Gross yield on its portfolio, which includes apartment complexes in Rockbrook in Sandyford, Dublin 18 and Tyrone Court in Inchicore, Dublin 8, was 6.9 per cent.

During the year, the company invested €125.5 million to acquire 410 apartments in Dublin.

It also recently agreed to acquire 442 apartments in Tallaght from the National Asset Management Agency (Nama) for €83 million.

The company said it had secured a new credit facility of up to €250 million, which can be extended to €350 million subject to certain terms and conditions, with its creditors, which replaces the €60 million revolving credit facility which was due to mature in August 2016.

The new facility has a five-year term commencing January 2016 and has a reduced margin compared to the previous facility, it said.

Ires Reit had basic earnings per share of 3.3 cent for the year, compared to 1.6 cents for the period from July 2013 to December 2014.

On its outlook for the coming year, the company noted strong market demand and continued shortage of housing would help support the rental market, with strong pipeline of future acquisitions available through NAMA and private market opportunities.

It said it had acquisition capacity in excess of €300 million as of the end of last year.

Chief executive David Ehrlich said: “Using available financing with our new credit facility, with our pipeline of future acquisition opportunities and development intensification opportunities, the growing Irish economy and a severe supply and demand imbalance , our prospects for continued bottom line growth are very positive.”

Separately, Hibernia Reit released a trading update, noting it was continuing to see strong tenant demand in Dublin.

Hibernia recently exercised its option to take full control of Hardwicke House and Montague House for a net payment of €41.8 million, bringing the total paid for the two buildings to €60 million.

The company has also appointed Mark Pollard from Nama as its director of development. Mr Pollard will join the company in early May.

Listed property firm Hibernia Reit and US investor Starwood Capital have arranged a €46.7 million debt facility with Deutsche Bank to fund the development of the Windmill Lane site in Dublin’s south docks.

Hibernia jointly acquired the one-acre site in a 50/50 joint venture with an affiliate of Starwood’s.

The site, which once housed a recording studio used by U2, the Rolling Stones and Van Morrison, has planning permission for 120,000 sq ft of office space, 15 residential units and 7,000 sq ft of retail space.

Kevin Nowlan, Hibernia’s chief executive, said:”We are making good progress across our development and refurbishment programme which will deliver significant new city centre office space in Dublin in the near term, against a backdrop of limited vacancy.