Irish Residential Properties REIT plc - June 2019 EPRA CORPORATE ACCESS DAY - LONDON 26 JUNE 2019 - Ires ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
PRIVATE & CONFIDENTIAL Irish Residential Properties REIT plc June 2019 EPRA CORPORATE ACCESS DAY – LONDON 26 JUNE 2019
I•RES REIT’s Key Investment Attractions – The Story So Far…
Established Operating High Quality Performing Attractive Market Backdrop Effective
Platform Asset Base & Growth Opportunities Capital Allocation
• Leveraging knowledge, • Portfolio of 2,6792 high- • Ireland was the fastest • Strategic deployment of
expertise and technology of quality, modern assets growing economy in the EU capital since IPO to grow our
CAPREIT in 2018 portfolio
• Located in desirable areas in
• Established platform with 46 Dublin • c. 20% projected population • Generated stable, growing
personnel in Dublin1 growth by 2040 dividends and NAV
• Average asset age of 9.5yrs2
appreciation
• 81.3% Net Rental Income • Significant imbalance
margin in 2018 between demand and • Acquisition and development
supply, with high housing plans to strategically grow
demand portfolio further
Delivering Progress Across Key Performance Indicators Since IPO3
No. of Units EPRA NAV per Share EPRA EPS Dividend per Share
1,204 2,679 €0.995 €1.42 1.6 cents 6.5 cents 0.68 cents 5.6 cents
2014 2018 2014 2018 2014 2018 2014 2018
1
2
I•RES is serviced by I•RES Fund Management Limited, which acts as the alternative investment fund manager for I•RES. As at 31 December 2018, 46 personnel employed through I•RES Fund Management Limited
2 As at 31 December 2018 3 As at financial years ending 31 December 2014 and 2018
I•RES REIT Financial Performance
Revenue from Investment Properties Occupancy
For the year ended 31 December 2018 2017
€60m 100%
Operating Performance
99.8% 99.8%
€50m
99%
Revenue from Investment Properties (€m) 50.6 44.7 €50.6m
€40m €44.7m 98.7%
Net Rental Income (€m) 41.2 36.3 €38.8m 98%
€30m
Profit (€m) 119.8 65.1 97%
€20m
Basic EPS (cents) 28.0 15.6
96%
€10m
EPRA Earnings (€m) 27.8 24.9
€0m 95%
EPRA Earnings per share (cents) 6.5 6.0 2016 2017 2018 2016 2017 2018
Average Monthly Rent EPRA NAV
Portfolio Performance €1,600 €650m
€1,599
Total Number of Residential Units at year end 2,679 2,450 €1,550 €600m €620m
Overall Portfolio Occupancy Rate2 99.8% 99.8% €1,500
€550m
€1,517
Overall Portfolio Average Monthly Rent (€)2 1,599 1,517 €1,450
€500m
€504m
€450m €470m
Gross Yield at Fair Value1,2 6.1% 6.6% €1,427
€1,400
€400m
€1,350 €350m
As at 31 December 2018 2017 €1,300 €300m
2016 2017 2018 2016 2017 2018
Liquidity and Leverage
EPRA Earnings per Share Dividends per Share
Total Property Value (€m) 921.3 750.9
7.0c 6.0c
Net Asset Value (€m) 618.7 504.0 6.0c 6.5c 5.6c
5.0c
6.0c 5.2c
EPRA Net Asset Value (€m) 619.6 504.2 5.0c
4.9c
4.0c
4.9c
Basic NAV per share (cents) 142.5 120.8 4.0c
3.0c
EPRA NAV per share (cents)2 142.0 118.5 3.0c
2.0c
2.0c
Group Total Gearing2 33.6% 33.0%
1.0c 1.0c
0.0c 0.0c 3
1 Excluding fair value of development land and investment properties under development 2016 2017 2018 2016 2017 2018
2 For definitions, method of calculation and other details, refer to page 27 to 28 of the Company’s 2018 Annual Report
Market Backdrop
I•RES REIT Growth Strategy Continues to be Underpinned by Favourable Market Conditions
Continued Strong Economic Growth Forecast Rapid Population Growth Housing Demand Significantly Above Supply
4% 3.8% 5.5m 1.6m 40,000
35k Est. National Annual Demand
35,000
5.3m
1.4m
3%
New Dwelling Completions
30,000
2019 GDP Growth Forecast
5.0m Estimated demand still
1.2m 25,000 c. 2x supply levels
2%
4.8m
20,000
1.2% 1.0m
4.5m 15,000
1%
0.8m 10,000
4.3m
0% 5,000
4.0m 0.6m
2010 2015 2019 2020 2025 2030 2035 0
Ireland Dublin (RHS) 2011 2012 2013 2014 2015 2016 2017 2018
Source: European Commission, Spring 2019 GDP Forecasts Source: UN Population Growth Forecasts Source: CSO (Completions Data); ESRI (Est. Housing Demand)
Record-level Employment Numbers Youngest Population in Europe Record Low Rental Stock Available
2500 18% 9,000
16% Ireland 33.3%
8,000
Rental Stock in Dublin (units)
2250 14% France 7,000
12%
UK 6,000
10%
2000 NL 5,000
8%
4,000
6% Spain
1750 3,000
4% Germany
2,000
2%
Italy
1500 0% 1,000
2009 2011 2013 2015 2017 2019 0% 5% 10% 15% 20% 25% 30% 35% -
Employment ('000) Unemployment Rate 2007 2009 2011 2013 2015 2017 2019
% Population Under 25 Years 4
Source: CSO Source: Eurostat Source: Daft.ie
I•RES REIT Growth Strategy
Multi-Channel Growth Strategy to Deliver Sustainable Long-Term Growth
1 2 3
Acquisition of Development Development
Completed Assets Partnerships of Existing I•RES Properties
• Continued evaluation of new • Forward purchase agreements • Opportunity to add approx.
acquisition opportunities in with local builders and 628 apartments at currently
attractive urban locations developers for new supply of owned I•RES properties1
multi-family and single-family
• Following criteria considered: units • Partially completed foundation
infrastructure (e.g. parking)
Good transportation links, already in place at Rockbrook
community infrastructure – site
in particular, schools
• Infill and conversion
Local employment opportunities are available on
currently owned commercial
Family-friendly properties1
neighbourhoods
Disciplined capital allocation policy to generate value and growing dividends for I•RES shareholders
5
1 Subject to planning and any other approvals
Strong Execution on Growth Strategy
Hampton Wood Hansfield Wood II The Coast, Baldoyle Waterside, Swords Marathon XVI Portfolio2
Key: 128 units 95 units 52 units 55 units 815 units
Completed acquisition • Acquisition in May 2018 for • Development agreement in • Acquisition in May ‘19 for c.
• Acquisition in February 2019 • See details overleaf
€40m1 Nov 2018 for €30m1 €18.5m1
for c. €14m1
Forward purchases / • Leased at gross yield of c. • To be handed over in mid-2020 • To be handed over in Q1 ‘20
development agreements • Expected gross yield: c. 6.1%
6.6%3 • Expected gross yield c. 6.6% • Expected gross yield: c. 7.0%
2018 2019
Hansfield Wood I Merrion Road Donabate & Balbriggan Development Pipeline
99 units 69 units 118 units 628 units3
• Pre-purchase agreement in Nov
• Took delivery during 2018 • Agreement entered in March
2018 • See details on slide 9
• Agreement entered into with local 2019 for c. €38.2m1
• To be handed over by Q4 ’21 for
developer in Nov 2017 • To be handed over in Q4 ‘19
c. €47.1m1
• Leased at gross yield of c. 7.9%4 • Expected gross yield: c. 6.7%
• Expected gross yield: c. 5.6%
Building a diverse, significant portfolio focused on Dublin area and other large cities in Ireland
4,511 units
No. of units 2,450 229 170 150 69 815 628 Pro Forma I•RES
Portfolio
I•RES Investment Properties 2018 2019 2020 2021 Acquisition of Opportunity for
as at 31 Dec 2017 Acquisitions & Acquisitions Forward Forward Marathon XVI Development of
Developments & Forward Purchases Purchases Portfolio (2019) Existing Properties
Purchases (2019- 2022)3 6
1 Excluding transaction costs and including VAT 2 The acquisition of the Marathon XVI Portfolio remains subject to regulatory clearance.
3 Rockbrook (428 units, PP application submitted); Tallaght Cross West (18 units, PP granted); Bakers Yard (61 units, PP granted); Priorsgate (31 units, PP granted); BSQ (“B4”) (84 units, Decision to grant planning under appeal); Priorsgate (Conversion)(5 units, PP granted); Coldcut (Conversion)(1 unit, PP granted)
4 Gross Yield as at 31 December 2018 (passing rent as at 31 December 2018, divided by purchase price (including VAT and excluding transaction costs))
Marathon XVI Portfolio Acquisition1
Portfolio Transaction Highlights I•RES REIT Asset Locations in Dublin Area
• A significant, diversified and income producing PRS portfolio of 815 residential units M1
Existing I•RES Properties
• Comprises 16 established properties in areas with strong rental demand and proximity Marathon XVI Portfolio
Dublin Airport
to local amenities and transport links
15 schemes in prime locations in the Dublin Area and 1 scheme in Cork M50
M50
• Passing rent of c. €1,4862 with estimated rental value (ERV) of €1,803
• Consideration payable of €285 million (including VAT and excluding transaction costs),
implying a gross yield of approximately 5.1% (estimated reversionary yield of 6.2%)
Benefits Dublin
Capital allocation into income generating assets
Excellent opportunity to acquire established portfolio of scale in the Dublin market
Complementary geographical footprint to existing portfolio – ability to leverage
M50
I•RES’ existing operating platform and infrastructure
Potential to capture reversionary rental income and replicate I•RES’ net rental M50
income margins going forward
Accretive to earnings in first full year post acquisition
Significantly Expands Dublin Footprint
Asset Highlights
20%+
€1,486 €1,803 815 98.7%
Passing rent2 ERV2 Residential units Occupied
7
1 The acquisition of the Marathon XVI Portfolio remains subject to regulatory clearance.
2 Per unit, per month. As at April 2019
I•RES REIT Development Pipeline
Development and Intensification of Existing I•RES Properties is a Core Element
of Growth Strategy
Development Initiatives Planning Status
• During 2018, significant progress made with No. of
several planning applications for development Location Residential Units Status
at Completion
projects:
Tallaght Cross West 18 Planning Permission Granted
planning applications have been
submitted for 628 apartments at sites Bakers Yard 61 Planning Permission Granted
currently owned
Coldcut (Conversion) 1 Planning Permission Granted
of these, planning permissions have been
Priorsgate (Bruce House) 31 Planning Permission Granted
received for 116 apartments
Priorsgate (Conversion) 5 Planning Permission Granted
a planning application for the development
of 428 residential units (including car Beacon Square South (B4) 84
Notification of Decision to Grant
parking and commercial) at Rockbrook planning permission under appeal
has been submitted to the Planning Board Rockbrook 428 Planning application submitted
under the Strategic Housing Development
application process Total 628
8
Beacon Square South (B4) Rockbrook Bakers Yard
Ability to Drive Value Through an Efficient Operating and Investment
Management Model
By leveraging the global expertise, systems and technology platforms
of CAPREIT (a global market leader), I•RES REIT seeks to deliver a
superior tenant experience and performance for shareholders
The “I•RES Advantage”
Professional Property Management Platform
Technology &
Systems
Staff Resident
Training Communications
Knowledge & Hands-On
Experience Approach
9
For details on the investment manager please refer to the Appendix, slide 22
A Place to Call Home
2018 Annual Shareholders’ Meeting Irish Residential Properties REIT plc
10Prudent Balance Sheet Management
EPRA NAV I•RES Value Creation
€650m €620m 170c
€600m 160c • Pipeline of opportunities across I•RES’ three growth
channels
150c
€550m 142.0
€504m 140c • Expected market rental growth and capture of existing
€500m €470m rent reversion
130c
€435m
€450m 118.5
112.5 120c • Potential for strong planning gains
€400m 104.3 110c • Multi-year development pipeline, timing of delivery
€350m 100c subject to assessment of capital optimisation
2015 2016 2017 2018
EPRA NAV EPRA NAV per share (cents)(RHS)
Total Group Gearing Balance Sheet
50% 50%
45% • Amended the financing facility to increase the limit from
40% €450m to €600m, with a 5 year term with extension
available for 2 more years, with low interest rate
30% 33.0% 33.6%
31.3% • Recent Equity placing to provide additional financing for
LTV %
I•RES’s growth strategy
20%
• Pro-forma LTV post acquisition of Marathon XVI Portfolio
10% and other deals in 2019 of c. 45%2
8.6%
0% • No change to target LTV policy of 45%
2015 2016 2017 2018
LTV Target Max
11
2 Assumes consideration payable of €285m for Marathon XVI potrtfolio (including VAT and excluding transaction costs) and completion of placing of up to 19.95% of the Company’s current issued share capitalI•RES REIT │ Summary Conclusions
Attractive market backdrop with strong economic fundamentals and significant
demand and supply imbalance
Three pronged growth strategy to continue to support building a leading
residential rental business
Portfolio growth strengthens I•RES’ position and ability to leverage
established operating and investment platform
Disciplined capital allocation policy generating stable and growing dividends
and strong shareholder returns
12Appendix
Significant, Diverse Portfolio in the
Dublin Area
15 19 Dublin City Centre Secondary Suburbs
01 Kings Court 13 Priorsgate
Smithfield D7 (83 Units) Tallaght D24 (103 Units)
18 02 The Marker Residence 14 The Laurels
Docklands D2 (85 Units) Tallaght D24 (19 units)
03 Bakers Yard 15 Charlestown
Portland Street North D1 (86 Units) Finglas D11 (235 units)
03 04 City Square 16 Tallaght Cross West
Gloucester St D2 (23 units) Tallaght D24 (442 Units)
17 Coldcut Park
Prime Suburbs Clondalkin D22 (90 Units)
05 Beacon South Quarter
17 04 Sandyford D18 (225 Units) 18 Hansfield Wood
22 01 02 Ongar, D15 (99 Units)
06 Grande Central
20 Sandyford D18 (65 Units)
19 Hampton Wood
07 Rockbrook Grande Central Finglas, D11 (128 Units)
12 Sandyford D18 (81 Units)
21
08 Rockbrook South Central Inchicore Drimnagh
11 Sandyford D18 (189 units) 20 Camac Crescent
09 The Forum Inchicore D8 (90 units)
Sandyford D18 (8 units) 21 Lansdowne Gate
10 The Maple Drimnagh D12 (224 Units)
Sandyford D18 (68 Units)
14 22 Tyrone Court
11 Elmpark Green Inchicore D8 (95 Units)
13 16 Merrion Road D4 (201 Units)
06
09 10 12 Bessboro
07
05 08 Terenure D6 (40 Units)
14Existing Portfolio
No of apartments Average mthly rent Gross Yield at
Property Location Year Built Occupancy 1,2
owned1 per apt.1,2 Fair Value
City Centre
1 Kings Court Smithfield 2006 83 € 1,464 100.00% 6.6%
2 The Marker Docklands 2012 85 € 2,771 97.60% 4.4%
3 Bakers Yard Portland Street North 2007/2008 86 € 1,486 100.00% 6.8%
4 City Square Gloucester Street 2006 23 € 1,632 100.00% 5.9%
Total City Centre 277 € 1,886 99.4% 5.9%
Prime Suburbs
5 Beacon South Quarter Sandyford 2007/2008 225 € 1,853 99.60% 7.3%
6 Grande Central Sandyford 2007 65 € 1,724 100.00% 5.4%
7 Rockbrook Grande Central Sandyford 2007 81 € 1,661 100.00% 5.7%
8 Rockbrook South Central Sandyford 2007 189 € 1,687 100.00% 5.5%
9 Forum Sandyford 2007 8 € 1,777 100.00% 5.7%
10 The Maple Sandyford 2017 68 € 2,046 100.00% 5.3%
11 Elmpark Green Merrion 2006 201 € 1,590 99.50% 5.3%
12 Bessboro Terenure 2008 40 € 1,657 100.00% 5.1%
Total Prime Suburbs 877 € 1,735 99.9% 5.7%
Secondary Suburbs
13 Priorsgate Tallaght 2007 103 € 1,199 99.00% 6.8%
14 The Laurels Tallaght 2007 19 € 1,286 100.00% 8.7%
15 Charlestown Finglas 2007 235 € 1,392 100.00% 6.0%
16 Tallaght Cross West Tallaght 2008 442 € 1,287 99.80% 6.8%
17 Coldcut Park Clondalkin 2012 90 € 1,457 100.00% 7.4%
Total Secondary Suburbs 889 € 1,322 99.8% 7.1%
Inchicore/Drimnagh
18 Camac Crescent Inchicore 2008 90 € 1,401 100.00% 7.0%
19 Lansdowne Gate Drimnagh 2005 224 € 1,604 100.00% 6.0%
20 Tyrone Court Inchicore 2014 95 € 1,574 100.00% 6.4%
Total Inchicore/Drimnagh 409 € 1,552 100.0% 6.5%
Total investment properties owned as at 31 December 2017 2,452 € 1,572 99.80% 5.9%
21 Hansfield Wood Ongar 2018 99 € 2,133 99.00% 6.7%
Hansfield Wood II3 Ongar 2018 - - - n/a
22 Hampton Wood Finglas 2018 128 € 1,716 100.00% 6.4%
Total investment properties owned as at 31 December 2018 2,679 € 1,599 99.80% 6.1%
15
Note: 1 As at 31 December 2018 15
2 Based on residential apartments
3 As at 31 December 2018, Hansfield Wood II is still under construction. The expected Gross Yield is c 6.6%Existing Portfolio (Cont.)
City Centre
Kings Court The Marker Residences Bakers Yard City Square
83 Residential Apartments 85 Residential Apartments 86 Residential Apartments 23 Residential Apartments
Smithfield, Dublin 7 Grand Canal Dock, Dublin 2 Portland Street North, Dublin 1 Gloucester Street, Dublin 2
The Company acquired Kings Court, The Company acquired the Marker The Company acquired Bakers Yard, The Company acquired City Square,
located in Smithfield, Dublin 7, in Residences, located in the Grand an apartment development on 0.6 ha located on Gloucester Street, Dublin
September 2013. The development Canal Dock area of Dublin 2, in July (1.4 acres) adjacent to Dublin City 2, in April 2016. The development
was constructed in 2006 and is a 2014. The development was Centre in Dublin 1, in October 2014. was constructed in 2006 and
residential development consisting of constructed in 2012 and consists of The development was constructed in consists of 27 apartments, 23 of
83 residential apartments dispersed 105 luxury residential apartments, 85 2007/2008 and is within walking which are owned by the Company.
over four blocks. The entire of which were acquired by the distance of many large government The Company’s 23 residential units
development is constructed over a Company, and approximately 1,218 and private sector employers, as well consist of 15 one-bedroom and eight
common basement with 65 car park sq. m. (13,111 sq. ft.) of commercial as local and national public transport two-bedroom residential units. The
spaces. The Company’s 83 space, all of which was acquired by infrastructure. The development property is located near Trinity
residential apartments consist of 25 the Company. The Company’s 85 consists of 132 residential College and the River Liffey, and
one-bedroom, 54 two-bedroom and residential apartments are all two- apartments, 86 of which are owned close to LUAS and DART lines.
four three-bedroom residential bedroom residential apartments. by the Company. The Company’s
apartments. This development also 86 residential apartments consist of
has 566 sq. m. (6,093 sq. ft.) of 13 one-bedroom, 61 two-bedroom
commercial space, all of which is and 12 three-bedroom residential
owned by the Company. apartments. The Company also
owns approximately 792 sq. m.
(8,525 sq. ft.) of ancillary commercial
space within the development. In
addition, the Company owns an
adjoining 0.18 ha (0.45 acre) site
with planning consent for a further 55
residential apartments and three
ground floor commercial units.
16Existing Portfolio (Cont.)
Prime Suburbs
Beacon South Quarter Grande Central Rockbrook Grande Central The Forum
225 Residential Apartments 65 Residential Apartments & Rockbrook South Central 8 Residential Apartments
Sandyford, Dublin 18 Sandyford, Dublin 18 270 Residential Apartments Sandyford, Dublin 18
Sandyford, Dublin 18
The Company acquired Beacon South The Company acquired Grande The Company acquired the The Company acquired The Forum,
Quarter, located in Sandyford, Dublin Central, located in Sandyford, Dublin Rockbrook Portfolio, located in located in Sandyford, Dublin 18, in
18, in October 2014. The development 18, in September 2013. The Sandyford, Dublin 18, in March 2015 February 2016. The development
was constructed in 2007/2008 and is a development was constructed in via the acquisition of I•RES was constructed in 2007 and
landmark mixed-use development on 2007 and is a residential Residential Properties Limited. The consists of 127 residential
5.3 ha (13 acres). A number of major development located within the development consists of 270 apartments, eight of which, along
employers are located in the suburb of Sandyford, Dublin 18, residential apartments and with 11 basement car parking
immediate neighbourhood, including approximately 8 km south of Dublin approximately 4,665 sq. m. (50,214 spaces, are owned by the Company.
Vodafone, Merrill Lynch and Microsoft, City Centre. The development is on a sq. ft.) of mixed-use commercial The Company’s eight residential
and the development is adjacent to 0.5 ha (1.2 acre) site and consists of space. The portfolio also includes a apartments consist of one one-
the LUAS light rail line to the city a purpose-built apartment block with development site of approximately bedroom and seven two-bedroom
centre. The development consists of 195 residential apartments, 65 of 1.13 ha (2.8 acres) and associated residential units. The Forum is
880 luxury residential apartments, 225 which are owned by the Company. basement car parking. The property located on the LUAS tram line and
of which are owned by the Company. The entire development is is located close to the Stillorgan next to the Royal College of
The Company’s 225 residential constructed over a common LUAS light rail system stop, in an Surgeons’ Sandyford facility. The
apartments consist of 26 one- basement with a single car park area serviced by numerous bus development is also adjacent to the
bedroom, 173 two-bedroom and 26 space per residential apartment. The routes. Located nearby are the Company’s Rockbrook and Beacon
three-bedroom residential apartments. Company’s 65 residential apartments UPMC Beacon Hospital and large South Quarter portfolios.
The Company also owns approx. consist of 10 one-bedroom, 34 two- employers such as Microsoft,
2,395 sq. m. of ancillary commercial bedroom and 21 three-bedroom Vodafone, Volkswagen and the
space within the development. In residential apartments. Clayton Hotel. The Company’s 270
addition, the Company owns two residential apartments consist of 46
adjacent development sites and one one-bedroom, 203 two-bedroom and
former site that has now been 21 three-bedroom residential
developed into The Maple and 6,847 apartments.
sq. m. of commercial space. 17Existing Portfolio (Cont.)
Prime Suburbs
The Maple Elmpark Green Bessboro
68 Residential Apartments 201 Residential Apartments 40 Residential Apartments
Sandyford, Dublin 18 Merrion Road, Dublin 4 Terenure, Dublin 6
The Company completed the The Company acquired Elmpark The Company acquired Bessboro,
construction of The Maple, located in Green, located in Merrion Road, located in Terenure, Dublin 6, in
Sandyford, Dublin 18, in July 2017. Dublin 4, in May 2016. The December 2015. The development
The development consists of 68 Company’s 201 residential was constructed in 2008 and
residential apartments, all of which apartments consist of 101 one- consists of 40 residential apartments,
are owned by the Company. By bedroom, 96 two-bedroom and four all of which are owned by the
apartment type, The Maple three-bedroom residential Company. The Company’s 40
comprises four one-bedroom, 55 apartments. The development was residential apartments consist of six
two-bedroom and nine three- constructed in 2006, and consists of one-bedroom, 32 two-bedroom and
bedroom apartments. The 332 apartments, 201 of which are two three-bedroom apartments.
development is conveniently located owned by the Company. Elmpark Bessboro provides a strong
near UPMC Beacon Hospital, BSQ Green is located near Merrion, suburban location only 7 km from
Shopping Centre and transportation Blackrock and Frascati Shopping Dublin City Centre and 4.6 km from
links such as the Stillorgan LUAS Centres, and is also adjacent to the the M50 motorway. The location
stop. Elm Park Golf and Sports Club, as provides a range of amenities
well as St. Vincent’s University including shops, schools, bars and
Hospital. restaurants, all within walking
distance of Bessboro and also in
close proximity to Bushy Park, golf
and rugby clubs.
18Existing Portfolio (Cont.)
Secondary Suburbs
Priorsgate The Laurels Charlestown Tallaght Cross West
103 Residential Apartments 19 Residential Apartments 235 Residential Apartments 442 Residential Apartments
Tallaght, Dublin 24 Tallaght, Dublin 24 Finglas, Dublin 11 Tallaght, Dublin 24
The Company acquired Priorsgate, The Company acquired The Laurels, The Company acquired Charlestown, The Company acquired Tallaght
located in Tallaght, Dublin 24, in located in Tallaght, Dublin 24, in a mixed-use development set on Cross West, located in Tallaght,
September 2013. The development June 2014. The development was 16.2 ha (40 acres) in Finglas, Dublin Dublin 24, in January 2016. The
was constructed in 2007 and is a constructed in 2007 and consists of 11, in October 2014. The development was constructed in
residential development on a 1.1 ha 19 residential apartments, all of development was constructed in 2008 and consists of 507 residential
(2.6 acre) site located approximately which are owned by the Company. 2007 and consists of 285 residential apartments, 442 of which are owned
10 km southwest of Dublin City The Laurels consists of four one- apartments, 235 of which are owned by the Company. The Company’s
Centre. The development consists of bedroom, 13 two-bedroom and two by the Company. The Company’s 442 residential apartments consist of
199 residential apartments dispersed three-bedroom residential 235 residential apartments consist of 161 one-bedroom, 237 two-bedroom
over three blocks, 103 of which are apartments. The Company also 36 one-bedroom, 164 two-bedroom and 44 three-bedroom residential
owned by the Company. The owns 190 sq. m. (2,045 sq. ft.) of and 35 three-bedroom residential apartments. The Company also
Company’s 103 residential commercial space in the form of one apartments. The overall development owns 18,344 sq. m. (197,460 sq. ft.)
apartments, which are dispersed large unit which could be split into comprises facilities for tenants of commercial space and associated
over the three blocks, consist of 49 two units. including a shopping centre, a underground car parking. The
one-bedroom, 48 two-bedroom, five medical centre and a variety of Company has received a grant of
three-bedroom and one four- leisure and restaurant facilities. The planning permission for the
bedroom residential apartments. property is located approximately 9.5 conversion of unused commercial
km from Dublin City Centre and 8 km space to 18 residential apartments.
from Dublin airport, and is adjacent
to the main M50 and M2
transportation corridors.
19Existing Portfolio (Cont.)
Secondary Suburbs Inchicore/Drimnagh
Coldcut Park Camac Crescent Lansdowne Gate Tyrone Court
90 Residential Apartments 90 Residential Apartments 224 Residential Apartments 95 Residential Apartments
Clondalkin, Dublin 18 Inchicore, Dublin 8 Drimnagh, Dublin 12 Inchicore, Dublin 8
The Company acquired Coldcut The Company acquired Camac The Company acquired Lansdowne The Company acquired Tyrone
Park, located on Coldcut Road in Crescent, located in Inchicore, Gate, a superior quality development Court, located in Inchicore, Dublin 8,
Clondalkin, Dublin 18, in August Dublin 8, in September 2013. The on 2.2 ha (5.5 acres) in Drimnagh, in June 2015. The development was
2016. The Company’s 90 residential development was constructed in Dublin 12, in October 2014. The constructed in 2014 and consists of
apartments consist of 18 one- 2008 and is a residential development consists of 280 131 apartments across four
bedroom, 22 two-bedroom, 33 three- development on a 0.56 ha (1.4 acre) residential apartments, 224 of which residential apartment blocks, 95 of
bedroom and 17 four-bedroom site located in Inchicore, Dublin 8, are owned by the Company, set in which are owned by the Company.
residential apartments. The approximately 3 km west of Dublin 11 blocks over semi-basement car The Company’s 95 residential
development was constructed in City Centre. The development parking, with the benefit of a apartments consist of four three-
2012 and consists of 93 apartments, consists of 110 residential centralised district heating system, bedroom duplex units, three three-
90 of which are owned by the apartments dispersed over six landscaped gardens and a children’s bedroom, 64 two-bedroom and 24
Company. The property is located blocks, 90 of which are owned by the playground. The Company’s 224 one-bedroom apartments. The
near Liffey Valley Shopping Centre, Company. The entire development is residential apartments consist of 23 property is located in an established
LUAS Red Line and Cherry Orchard constructed over a common one-bedroom, 146 two-bedroom and residential area close to Drimnagh
Railway Station. basement with a single car park 55 three-bedroom residential Station, which is a 15-minute
space per residential apartment. The apartments. The development was commute to City Centre. Located
Company’s 90 residential apartments constructed in 2005 and is located nearby are St. James’s Hospital,
consist of 21 one-bedroom, 49 two- adjacent to the LUAS light rail Inchicore College, the Central
bedroom and 20 three-bedroom system, 5 km from the City Centre Criminal Court and Heuston Station,
residential apartments. and within walking distance of all of which provide a strong
numerous large employers, as well employment centre and tenant
as shopping and leisure facilities. market.
20IRISH RESIDENTIAL PROPERTIES REIT plc 2018 Investor Presentation Irish Residential Properties REIT plc
Strong Governance
Board of Directors
Margaret Mark Kenney Aidan O’Hogan
Declan Moylan Sweeney Independent Non-Executive
Independent Non- Non- Independent and Non-Executive
I-RES CEO & Executive Director Director, (Investment Manager and Senior Independent Director
Executive Chairman
• Former Managing Partner and • Former CEO of daa plc (Dublin Nominee) (Joined the Board 1 January • Fellow of the Society of Chartered
Former Chairman of Mason Hayes & Airport Authority) and Postbank 2019) Surveyors Ireland and past
Curran and Chairman of the firm’s Ireland Limited. Former Director • Currently the President and Chief president of Irish Auctioneers and
International Practice Group with KPMG. Operating Officer of CAPREIT Valuers Institute
• Former Chairman of Savills Ireland
Joan Garahy Phillip Burns Tom Kavanagh
Independent Non-Executive Director Non-Independent and Non-Executive Independent Non-Executive Director
• Currently a member of the board of Director • Former Partner at Deloitte Ireland,
directors of Kerry Group plc (ISE: KRZ) experience in professional practice as a
• Chief Executive Officer and trustee of business advisor, corporate restructuring
• Has 28 years of experience of advising European Commercial Real Estate expert and insolvency practitioner
Investment Trust (TSXV:ERE.UN)
21
on and managing investment funds
212018 Investor Presentation Irish Residential Properties REIT plc
Investment Management
Investment Management Arrangements Summary
I-RES Fund Management, an Irish subsidiary of • IRES Fund Management Limited (“IRES Fund”), an indirect wholly
CAPREIT, is the company’s investment owned subsidiary of CAPREIT, became authorised as an AIFM on
manager. November 2015 for initial term of 5 years from that date.
• I-RES Fund has the ability to serve 12 months notice of the
ABOUT CAPREIT termination of the IMA after 1 November, 2019.
Founded in 1997, a Canadian leader in the
professional property management of rental • IRES REIT (the Company) may internalise at no cost after the initial
accommodation, owns interest in 57,476 term of the IMA.
residential units, comprising 45,800 residential • Pursuant to the IMA, the Company pays annual management fees
suites and 72 manufactured home communities (the “Management Fee”) equal to 0.5% of the Company’s Asset
comprising 11,676 land lease sites located in Management NAV(1) and 3% of gross rental income to IRES Fund.
and near major urban centres across Canada • CAPREIT Limited Partnership provides property management,
and The Netherlands (1) administrative, financial, due diligence, marketing, IT and other
services to IRES Fund pursuant to the terms of a services
By leveraging the global expertise, systems
agreement. The fees owing to CAPREIT Limited Partnership under
and technology platforms of CAPREIT, IRES
the services agreement are paid out of the Management Fees.
Fund Management delivers a superior tenant
experience and performance for • Options up to a maximum of 10% of shares outstanding may be
shareholders issued under the Company’s long-term incentive plan, will have a
maximum life of 7 years and vest at a rate of 1/3rd each year
Notes: The Company’s Asset Management NAV is the figure used for the purpose of calculating the
annual fees under the AIFM agreement and the IMA, which from January to June in each year is
based on the prior 31 December independent valuation adjusted for acquisitions and/or disposals in
January to June of that year, and which from July to December in each year is based on the prior 30
June independent and/or Board valuation (as applicable) adjusted for acquisition and/or disposals in
July to December of that year.
22
1 As at June 20, 2019DISCLAIMER
Cautionary Statements
This presentation has been prepared by Irish Residential Properties REIT PLC (the “Company” or “I-RES”) for information purposes only.
This presentation has been prepared in good faith but the information contained in it has not been independently verified and does not purport to be comprehensive. The Company is not undertaking any
obligation to provide any additional information or to update this presentation or to correct any inaccuracies that become apparent. This presentation is neither a prospectus nor an offer nor an invitation to
apply for securities. The information contained in this presentation is subject to material updating, completion, revision, amendment and verification. Any prospective investor must make its own investigation
and assessments and consult with its own adviser concerning any evaluation of the Company and its prospects.
No representation or warranty, express or implied, is given by or on behalf of the Company, its group companies, IRES Fund Management Limited (“IRES Fund Management”) or any of their respective
shareholders, directors, officers, employees, advisers, representatives, agents or any other persons as to the accuracy, completeness, fairness or sufficiency of the information, projections, forecasts or opinions
contained in this presentation. Save in the case of fraud, no liability is accepted for any errors, omissions or inaccuracies in any of the information or opinions in this presentation and neither of the Company or
IRES Fund Management, nor any of their employees, officers, directors, advisers, representatives, agents or affiliates, shall have any liability whatsoever (in negligence or otherwise, whether direct or indirect, in
contract, tort or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. Certain financial and statistical information
contained in this presentation is subject to rounding adjustments. Accordingly, any discrepancies between the totals and the sums of the amounts listed are due to rounding.
This presentation contains forward-looking statements which can be identified by the use of terms such as "may", "will", "should", "expect", "anticipate", "project", "estimate", "intend", "continue", "target" or
"believe" (or the negatives thereof) or other variations thereon or comparable terminology. Such forward-looking statements are based on the beliefs of its management as well as assumptions made and
information currently available to the Company. Forward-looking statements speak only as of the date of this presentation and the Company and IRES Fund Management expressly disclaim any obligation or
undertaking to release any update of, or revisions to, any forward-looking statements in this presentation, including any changes in its expectations or any changes in events, conditions or circumstances on which
these forward-looking statements are based. Due to various risks and uncertainties, actual events or results or actual performance of the Company may differ materially from those reflected or contemplated in
such forward-looking statements. No representation or warranty is made as to the achievement or reasonableness of, and no reliance should be placed on, such forward-looking statements. There is no
guarantee that the Company will generate a particular rate of return.
To the extent indicated, certain industry, market and competitive position data contained in this presentation come from third party sources. Third party industry publications, studies and surveys generally state
that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. While the Company believes that each of
these publications, studies and surveys has been prepared by a reputable source, neither the Company nor IRES Fund Management have independently verified the data contained therein. In addition, certain of
the industry, market and competitive position data contained in this presentation may come from the Company’s own internal research and estimates based on the knowledge and experience of the Company
and IRES Fund Management in the Irish market. While the Company believes that such research and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not
been verified by any independent source for accuracy or completeness and are subject to change. Accordingly, undue reliance should not be placed on any of the industry, market or competitive position data
contained in this presentation.
THIS PRESENTATION DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER FOR SALE OR SOLICITATION OF ANY OFFER TO BUY ANY SECURITIES NOR SHALL IT OR ANY PART OF IT FORMS THE BASIS OF OR BE
RELIED ON IN CONNECTION WITH ANY CONTRACT OR COMMITMENT TO PURCHASE SHARES
2You can also read
