Strategic Review Update

Irish Residential Properties REIT plc (IRES) Strategic Review Update 25-Apr-2024 / 07:00 GMT/BST For immediate release

25 April 2024 

 

 

 

Irish Residential Properties REIT plc

(the “Company or “I-RES”)

Strategic Review Update

 

On 8 January 2024, the Board of I-RES announced that it would be conducting a review to consider and evaluate all strategic options available to maximise and unlock value for shareholders in the Company (“the Strategic Review”) and would provide an initial update ahead of the Company’s AGM in May 2024. The Strategic Review commenced following the release of the Company’s Full Year Financial Results on 23 February 2024.

 

The Strategic Review is being undertaken with specialist retained advisers and overseen by a Board sub-Committee, led by Chair Hugh Scott-Barrett with CEO designate Eddie Byrne and non-executive directors Denise Turner and Phillip Burns. A comprehensive framework has been outlined and a rigorous and extensive analysis of the potential strategic options available to maximise value for shareholders is underway.

 

The analysis completed to date confirms the Board’s view that the Company’s investment case is underpinned by a modern portfolio of high-quality residential assets in attractive growth locations and that it has a market-leading platform which continues to deliver a strong operational performance. Moreover, the Board believes the medium-term outlook for its market and its assets is positive, with expected population growth continuing to drive increased PRS demand considerably above the current level of supply. Against these attractive longer-term dynamics, the sector has recently been characterised by shorter-term headwinds including higher interest rates, widening yields, restrictive regulation including in particular a cap on rental growth, a notable lack of liquidity in the direct market, and an upcoming election, which present challenges for delivering shareholder returns and have impacted growth.