The State's largest property owner, Irish Residential Properties REIT, has reported higher profits and revenue for 2021 and said it continues to see robust demand continuing over the long term.
Irish Residential Properties REIT said its profits for the 12 months to the end of December increased by 15.8% to €67.5m.
Net Rental Income for the year rose by 5.4% to €63m, while revenue from Investment Properties grew by 6.7% to €79.7m from €74.7m the previous year.
It said today's results reflected continuing growth in its portfolio from acquisitions, organic rental growth and increased occupancy levels.
The company also said that it maintained high residential occupancy levels of 99.1% as at December 31, 2021.
Total rent collections (including commercial rent collections) stood at 99.2%, which the company said represents a very strong outturn under the current exceptional Covid-19 conditions.
Irish Residential Properties REIT said it intends to declare a dividend of 3.08 cents per share for the year.
During the year, it said it continued its growth strategy with investment in 148 new homes since December 2020, bringing its overall portfolio of homes for rental to 3,829 by the end of the year.
It closed the acquisition of a portfolio of 146 residential units at the Phoenix Park Racecourse in January 2021 and said it has invested in 130 new apartments and town houses due for delivery in 2022 at Bakers Yard.
It also entered into a 25-year social housing lease for 128 units at Hampton Wood in August.
Since the end of the year, it also announced a deal to buy 152 residential units located in Ashbrook, Clontarf in Dublin.
"This acquisition presents the opportunity for I-RES to invest in an attractive residential property as well as adding further supply of new apartments, in the sought after residential location of Clontarf," it stated.
Margaret Sweeney, the company's chief executive, said the unprecedented social and economic challenges due to the Covid-19 global pandemic continued during 2021.
"These results demonstrate the strong resilience of the business during this uncertain and challenging time with net rental income margin achieved of 79.1% and continued strong occupancy across the portfolio of 99.1%," she said.
"In this context it is important to highlight that the company did not apply any rent increases on existing resident leases for the period from April 2020 to October 2021 in recognition of the societal challenges presented by the Covid-19 pandemic," she added.
Margaret Sweeney said that housing in Ireland is a sensitive sector from public, government, political and regulatory perspectives, due to significant supply challenges in meeting growing demand for new homes.
"This has resulted in a number of changes to the regulatory environment over the last year, including changes in stamp duty and rent price regulation. The company continues to engage with and take account of this changing landscape in its investment and operating decision making. I-RES recognises its responsibilities to all stakeholders and is cognisant of the many challenges being faced in the housing sector and wider society," Ms Sweeney said.
"The economic growth outlook for Ireland and the fundamentals of our business remain strong with a young growing population, reducing household sizes, and continuing strong international investment supporting continued requirements for good quality professionally managed private rental accommodation," the CEO said.
"As we enter 2022, headwinds in relation to inflation and interest rates, which have not been a significant factor over the last 10 years, will put necessary focus on operational costs and efficiencies from operational scalability and enabling technology. The company is fortunate to have significant head room in its debt facilities as well as extended maturities, to minimise the impact of future interest rate increases," she added.
Shares in the company moved higher in Dublin trade today.
