Company Announcements

6 August 2021

IRISH RESIDENTIAL PROPERTIES REIT PLC

RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2021

Irish Residential Properties REIT plc ("I-RES" or the "Company"), an Irish real estate investment company focused on residential rental accommodation, today issues its Group interim results for the period from 1 January 2021 to 30 June 2021.

Key Financial and Operational Highlights

The Group delivered a strong performance for the period ended 30 June 2021 despite the ongoing coronavirus pandemic ("Covid-19"):

Resilient Operating Performance

•     Occupancy remains robust at 98.6%⁽¹⁾  across the residential portfolio (30 June 2020: 97.9%)

•     Residential rent collection rates stable at circa 99.0% for the period (30 June 2020: 98.9%)

•     Increase in Net Rental Income ("NRI") of 5.9% to €31.3 million (30 June 2020: €29.6 million), due to growth in the rental assets portfolio arising from acquisitions and organic rental growth.

•     Strong NRI margin of 79.5% (30 June 2020: 79.2%)

•     An increase in EPRA Earnings of 11.9% to €17.8 million (30 June 2020: €15.9 million).

•     EPRA EPS increased by 9.7% to 3.4 cents (30 June 2020: 3.1 cents) for the six months ended 30 June 2021 mainly due to an increase in revenue and a decrease in non-recurring costs incurred.

•     Continued growth in dividends. Intention to declare an interim dividend of 2.91 cents per share for the six months ended 30 June 2021.

Continued execution of Growth Strategy and Value Creation

•     Portfolio value of €1,457.5 million as at 30 June 2021, up 5.6 % in the period due to investments of €69.2 million and a revaluation gain of €8.7 million.

•     IFRS Basic NAV per share increased 1.0 % to 161.9 cents (31 December 2020: 160.3 cents), driven by the fair value gain on investment properties and profits from operations, offset by dividends paid in the first six months of the year.

•     EPRA NTA increased from €842 million at 31 December 2020 to €855 million at 30 June 2021 due to higher portfolio value and income generated during the year, net of dividends paid.

•     Acquired 146 residential units located in the Phoenix Park Racecourse, Castleknock, Dublin 15 for a purchase price of €60 million (including VAT and excluding transaction costs) in January 2021.

•     Disposed of unit C4 and the food court at Tallaght Cross West for gross proceeds of €1.7 million and a profit of €870,000 in May 2021.

•     Entered into a 25-year social housing lease for 128 units at Hampton Wood that is expected to close in August 2021.

Strong balance sheet and liquidity

•     Group total gearing at 30 June 2021 was 41.0% (31 December 2020: 39.2%).

•     No debt maturities before April 2024 and weighted average debt maturity of 5.1 years as at 30 June 2021 (31 December 2020: 5.3 years).

•     As at 30 June 2021, the Group has available facilities of €187 million (31 December 2020: €246 million) and €14.4 million of cash (31 December 2020: €11.2 million)

Internalisation of the Investment Management Function

•     The Company has today served a notice of termination of the Investment Management Agreement ("IMA") and exercised its right to acquire the shares of the Investment Manager, IRES Fund Management Limited (the "Manager" or "IRES Fund Management") with the Internalisation to take effect on 31 January 2022, subject to Central Bank of Ireland ("CBI") approval.

•     The IMA provides that if the Company have determined that it is in its best interests to internalise its management, the Company will purchase the Manager from CAPREIT Limited Partnership ("CAPREIT LP") on a liability free (other than liabilities in the ordinary course of business)/cash free basis for €1.

•     Internalisation is expected to simplify the management structure, capture economies of scale and reduce running costs over time. Greater pools of capital are also available to REITs with internalised structures.

(1)   Calculation excludes 18 units at Tallaght Cross West ("TCW") that are not available for rent from total properties owned.

Commenting on the results, Margaret Sweeney, Chief Executive Officer, said:

"The unprecedented social and economic challenges due to the Covid-19 global pandemic continued during the first half of 2021. The Company together with our Manager, IRES Fund Management, have focused first and foremost on ensuring the health and wellbeing of our employees, partners, residents and suppliers. We have worked together very effectively to navigate the business successfully through the uncertainty and challenges of this environment as well as continuing to grow the business in the first six months of the year.

The results for the first half reflect the continuing execution of our growth strategy with investment of €69.2 million in further residential homes for rental in the period. The business continues to perform strongly with revenue growth of circa 5.5% over the last year. In this context it is important to highlight that the Company did not apply any rent increases on existing resident leases over the past year in recognition of the societal challenges presented by the Covid pandemic. These results, demonstrate the strong resilience of the business during this uncertain and challenging time with net rental income margin achieved of 79.5% and continued strong occupancy across the portfolio of 98.6%.

We have continued to deliver on our growth and investment strategy with 148 new homes added since December 2020, bringing our overall portfolio of homes for rental to 3,836. During the period, we closed the acquisition of a portfolio of 146 high quality residential units at the Phoenix Park Racecourse on 28 January 2021. We continue to invest in line with our growth strategy with ongoing development of 130 new apartments and town houses in aggregate due for delivery in 2022 at Bakers Yard and through the forward purchase contract for Merrion Road, Dublin. We entered into a 25- year social housing lease for 128 units at Hampton Wood that is expected to close in August 2021.

IRES Fund Management, a wholly-owned subsidiary of CAPREIT LP, as provided for under the Investment Management Agreement, exercised its right on 31 March 2021 to terminate its services with 12 months' notice. In the interim period, the Company has continued to progress a transition programme and has been working with the Manager and CAPREIT in relation to assessing its option to internalize the Manager as provided for in the IMA. Today, the Company has served a notice of termination of the IMA and has exercised its right to internalise its management, with the Internalisation and acquisition of the shares in the Manager due to take effect on 31 January 2022. I am confident that, as an internalised and fully integrated business, the Company can build on its growth and operational capability in the future and deliver long-term value for all shareholders.

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 so far this year, with changes in stamp duty and rent price regulation introduced in June and July 2021. The Company continues to engage with and take account of this changing landscape in its investment and operating decision making. I-RES recognizes its responsibilities to all stakeholders and is cognizant of the many challenges being faced in the housing sector and wider society.

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 management private rental accommodation

I am confident that with a strong experienced I-RES team, we can continue to execute on our strategy and deliver strong operating performance and value for shareholders.''

Half Year Report

Please click on the following link to view the full half year report:

http://www.rns-pdf.londonstockexchange.com/rns/7813H_1-2021-8-5.pdf

For further information please contact:

Irish Residential Properties REIT plc

Michelle Ang, Director Investor Relations  Tel: +353 (0) 87 956 1138

Margaret Sweeney, Chief Executive Officer  Tel: +353 (0) 1 557 0974

For Media Requests:

Gerry O'Sullivan, Q4PR    Tel: +353 (0) 87 259 7644

About Irish Residential Properties REIT plc

Irish Residential Properties REIT plc (together with IRES Residential Properties Limited, the "Group") is a growth oriented Real Estate Investment Trust that is focused on acquiring, holding, managing and developing investment primarily focused on private residential rental accommodations in Ireland. The Group currently owns 3,836 apartments and houses for private rental in Dublin and Cork with an additional 69 units due to be for delivery by the end of H1 2022 under pre-purchase contracts. The Company has a further 61 units currently under construction directly on owned sites with planning approval to develop an additional 543 residential units on its existing sites. The Company's shares are listed on Euronext Dublin. Further information in respect of the Company can be obtained from the Company's website at www.iresreit.ie

Note on forward-looking information

This note applies if and to the extent that there are forward-looking statements in this Announcement.

This Announcement may contain forward-looking statements, which are subject to risks and uncertainties because they relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company or the industry in which it operates, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  The forward-looking statements referred to in this paragraph speak only as at the date of this Announcement.  Except as required by law or by any appropriate regulatory authority, the Company will not undertake any obligation to release publicly any revision or updates to these forward-looking statements to reflect future events, circumstances, unanticipated events, new information or otherwise, including in respect of the Covid-19 pandemic, the uncertainty of its duration and impact, and any government regulations or legislation related to it.