And it says there's still plenty of growth potential...
IRES Reit, the publicly-quoted residential property investment company has announced its three month trading performance to the end of September and reported that its net rental income rose by more than 50% compared to the same period last year.
We all know that rents have been rising steeply, particularly in Dublin, but this increase largely explained by the fact that IRES added more than 800 apartment units to its stock compared to the same period in 2015.
Its rental income is largely constrained by the government’s two-year rental cap, but many properties due a rent review in early 2017 – which is good news for IRES investors (though not, most likely, for tenants).
The group generated net income for the period from 1 July 2016 to 30 September 2016 of €5.5m, compared to €3.6m for the same period last year - that's a 53% bounce.
IRES Reit reports that its residential occupancy levels are at 99% as a lack of supply continues to squeeze the market.
Between July 1st and the start of November, the group acquired 89 apartments with 145 car parking spaces at Coldcut Park, Clondalkin, Dublin 22 for a total purchase price of €18.3m.
It also submitted a planning application to Dun Laoghaire Rathdown County Council for the construction of 492 apartments and ground floor retail/commercial space above three floors of basement car parking at Rockbrook, Sandyford, Dublin 18.
The company's B2B development of 68 apartments at Beacon South Quarter, Sandyford, Dublin 18 is also progressing to plan.
Its outlook states, "There is a pipeline for growth available through further sales by the National Asset Management Agency and private off market transaction opportunities as well as the development of apartments on currently owned sites."