Ires says sale of property assets would be 'challenging' in short-term as review continues

• Published date: 25 April 2024
• Author: Joe Brennan
• Publication title: Irish Times: Web Edition Articles (Dublin, Ireland)

While the board said it believes the medium-term outlook for the Irish private rental sector (PRS) "is positive", it continues to be affected by short-term headwinds such as higher interest rates, restrictive regulation including on rent increases, a lack of deals activity, and concerns about the upcoming general election

It highlighted Savills data showing that Irish PRS deals amounted to only €240 million last year, 73 per cent below the 10-year average.

"Independent analysis from the company's advisers has also observed that, based on current market dynamics, a strategy that requires an accelerated sale of all the company's assets in the direct market, including to occupiers and social providers such as the Government, would be challenging to maximise value for shareholders in the short-term," it said.

"These options, alongside a potential sale of the company, will continue to be explored in detail as the strategic review continues."

The update on the review before Ires's annual general meeting (agm) in two weeks' time may lead to tensions at board level following the gathering. The company conceded earlier this month to supporting two nominees put forward by Vision Capital, a Canadian investor with a 5 per cent stake which has been waging a public campaign for the past year for a sale or break-up of the company.

Under the truce, Vision has agreed to a standstill on initiating or participating in any further shareholder activist campaigns until after the company's 2025 agm.

The company's net asset value per share fell to just below €1.32 in December from €1.60 a year earlier, driven as the company wrote down the value of assets amid rising interest rates. However, the shares have continued to trade at a deep discount to even that lowered valuation, currently changing hands at about €1.

Further activist interest in Ires heaps on pressure ahead of agm

Ires, which owns 3,734 apartments and homes, said its review, which is being led by its new chairman Hugh Scott-Barrett and incoming chief executive Eddie Byrne, "has identified several initiatives with the potential to unlock the inherent value contained within the...