Irish Residential Properties REIT Plc

Hello, everyone, and welcome to the IREZ 2026 Interim Results. My name is Emily, and I'll be coordinating your call today. After the presentation, you will have the opportunity to ask any questions, which you can do so by pressing Start, followed by the number 1 on your telephone keypad. I would now like to turn the call over to Orla Keegan, Head of Investor Relations, to begin. Orla, please go ahead.

Good morning, everyone, and welcome to our 2026 Interim Results presentation. I'm Orla Keegan, Head of Investor Relations, and joining me is Chief Executive Officer Eddie Burns and Chief Financial Officer Mary Hurley. Before I hand over to Eddie, please note that some statements made today may be forward-looking and subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these forward-looking statements.

For detailed information, please refer to the risk section of our results issued today, which highlights these risks and uncertainties. I will now hand over to Eddie to provide an overview of the results for the half year. Thank you Orla and good morning everyone. Welcome to our 2026 interim results presentation. I'll start with taking you through the highlights of operational performance over the first half of the year and I will then take you through the financial performance in more detail before I finish up with some insights into the market backdrop and our outlook. Turning now to the highlights. The first half of 2026 delivered a very strong set of results, demonstrating the continued strength of the Ireland's operating platform and the progress we are making against our strategic priorities. One of the key features of this reporting period was the introduction of the new rent regulations, which came into effect on 1st March. By the 30 days in terms of impact, we are encouraged by the initial signs that we are seeing in the business and in the market more broadly. Looking at some of the key metrics and results, we delivered life-for-life passing rental growth of 2.1%, compared with loss 0.3% in H1 2025. Our net rent income margin remained strong at 78.1%, up 10 basis points on H1 2025. but also building on the very strong 120 basis points improvement delivered in full year 2025 and despite a 20 basis point negative impact due to an increase in local property tax. Adjusted earnings grew by 6.2% and our effort earnings per share increased by 5.8% to 2.9 cents. Our total accounting return also improved meaningfully to 6.8% in the first 6 months, up from 2.8% in H1 2025, driven by the increase in valuations, which in turn has been supported by the organic performance of our assets and the leasing activity under the new rent regime. This performance reflects our relentless focus on operating excellence, cost discipline and margin management, supported by our fully internalised platform. Importantly, we also are growing shareholder returns. The interim dividend is 2.5 cents per share, up 5.9% on H1 2025. At the same time, our balance sheet remains flexible, with the net loan to value ratio down 100 basis points to 42.6%, well within our target range of 40 to 45%, and giving us the ability to use that capacity to support growth. At the 30th of June 2026, our upper net initial yield held stable at 5.2%. While PRS yields are expected to tighten, we've not seen this play out yet, with improved operating performance being the main driver behind improving values. Overall, the business has continued to deliver across the areas within our control, while the improving registry and market backdrop provides a clearer pathway for growth. Turn now to slide 5. Operationally, our platform continues to perform exceptionally well. At 30 June, our portfolio comprised of 3,611 units, with a 99.4% occupancy level and average monthly rent of €1,884. Within this, the portfolio is 20% under-rented, which is a significant embedded growth opportunity. The new rent regulation framework is now starting to support the release of that reversion, albeit gradually as units turnover and new leases are signed. For the first six months of the year, our turnover rate was 6%, remaining in line with H1 2025. Our asset recycling program continues to deliver with 18 units disposed of in the period at a premium to book value of around 30%. As previously announced in February, we also signed a forward purchase agreement for 77 units in NACE, demonstrating our ability to resize the capital into opportunities that can enhance the portfolio and support future earnings growth. These assets will be immediately earnings enhancing following a short lease-up period with a full year impact anticipated in 2027. Moving to slide 7 on our recent acquisitions. Arbor Gate is a strong example of how we are investing selectively to improve the quality and long-term performance of our portfolio. The 77 hay-raised homes increase our exposure to a growing location in Mace, where demand is supported by a strong local economy and convenient access to government. Financially, we expect the acquisition to deliver attractive returns, with a projected net initial yield of approximately 5.25%, funded by selling assets into the private market at implied yields below 4%. Overall, this is a disciplined capital deployment that has an excellent asset on supporting a sustainable portfolio growth. Turning the page, the IRA Living Rebrand is now complete. This rebranding creates a consistent resident-facing presence across leasing, compliance, resident accounts, Technical Services and State and ONC Communications. It also draws a clearer line between iRES as the corporate listed entity and iRES Living as the resident facing identity. But this is not just a visual change. It is about strengthening how the platform operates, how residents engage with us, and how we position our service offering in an increasingly competitive market. Having the iResilient brand and all the associated personal platforms aligned with it helps us service our residents quickly and comprehensively, which is one of our core strengths when it comes to maintaining our exceptionally high occupancy levels. A fully internalised platform is a key driver of operation efficiency, cost control and resident service. The rebrand supports that platform, improves consistency across touchpoints and helps ensure that the business remains fit for purchase as we move into the next phase of growth, including, and most importantly, releasing the reversion on our portfolio. Turning now to regulation, changes introduced from the 1st of March 2026 represent a very positive development for IRES and for the broader Irish PRS market. For existing leases, rent caps continue at the lower of CPI in 2%. However, Rent resetting has now been permitted for new tenants from the 1st of March 2026 and new lease assigned from that date also resets after 6 years in the event that the resident remains in situ. For IREZ this is highly significant. We have already begun to release that renting income reversion across the portfolio. This will be gradual as it is driven by turnover but the direction of travel is clear and positive. and for H1 2026 is slightly ahead of our expectations. With this revised framework in place, we're seeing much needed capital flows into the sector. Already investment volumes for the first half of 2026 have exceeded last year in totality and are materially ahead of any comparable H1 period since 2022. The new build exemption is also important, with new build apartments exempt from the 2% cap and allowed to increase in line with CPI. Together with the proposed sustainable design standard changes and VAT reduction measures, this should improve development viability, increase liquidity and support renewed investment in the sector. The regulatory headwinds that constrain the sector have reduced meaningfully and the business is well positioned to capitalise on this improved environment. With that, I will hand over to Mary who will take you through the financial performance. Thank you, Eddie, and good morning, everyone. I'm looking forward to meeting many of you during the results roadshow out there after.