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Irish Residential Properties REIT PLC on Friday reported it turned to a loss in 2022 on negative movement in fair value of investment properties, amid widening costs.
Irish Residential is a Dublin-based real estate investment trust focused on building a portfolio of residential rental accommodations.
The company swung to a pretax loss of €11.9 million for 2022, from a profit of €67.5 million in 2021. Revenue rose 6.4% to €84.9 million from €79.7 million. Net movement in fair value of investment properties however turned to negative €45.6 million from positive €34.9 million a year ago.
Meanwhile, property operating costs widened by 13% to €18.0 million from €16.0 million. Financing costs increased 21% to €16.8 million from €13.9 million.
The company proposed a dividend of 2.81 euro cents per share, down 8.8% from 3.08 euro cents a year prior.
Looking ahead, Chief Executive Officer Margaret Sweeney said: ‘As we look ahead, we are strongly placed to continue to execute on our vision for the business. Our experienced team, high-quality portfolio, robust balance sheet and strong liquidity levels mean we are very well positioned to navigate an uncertain new landscape, whilst continuing to deliver for our investors and our stakeholders.’
The company reiterated that demand for professionally managed homes far outstrips supply. It expects a boost from an anticipated GDP growth in the Republic of Ireland of 4.9% in 2023, as estimated by the European Commission.
Irish Residential Properties shares were 0.4% lower at €1.07 each on Friday.
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