Owner of apartments in Tallaght and Clondalkin boasts profits of over €33.3 million
By Aura McMenamin
Ireland’s largest private landlord – the owner of many apartments in Tallaght and Clondalkin – has boasted profits of €33.3m in the first six months of this year.
Ires Reit, a Canadian-based company, enjoyed a 25 per cent increase in profits as revenue from their rents grew from €17.9m to €21.7m in the first six months of the year to the end of June.
Ires Reit (Irish Residential Properties Real Estate Investment Trust) own roughly 2,300 apartments in Ireland, making them the largest non-government landlord.
The Canadian-backed company owns apartments in Tallaght at Cross West, The Laurels and Priorsgate, while in Clondalkin they own apartments at Coldcut Park. The company also owns seven properties across Sandyford.
The company’s occupancy average stand at 98.8 per cent. In the 442 out of 502 apartments they own in Tallaght Cross West, occupancy stands a 98.1 per cent. The 19 Laurels apartments on Main Street, Tallaght are at full occupancy.
The average rent across the portfolio rose from €1,399 to €1,459 and the company states in its half-year accounts that it plans to continue to raise rents as the housing crisis rages on.
The company has acknowledged that a 4 per cent cap on rent increases in ‘rent pressure zones’ by the government slowed down rental inflation:
“The introduction of the Rent Predictability Measure has had a moderating effect on rental inflation, which stood at 7.9 per cent year on year in June, down from 9.6 per cent year on year in December (when the measures were implemented).”
However, Ires Reit said: “Solid rental rate growth during the period arising from renewals and turnovers of residential apartments’ and noted that a shortage of housing on the market would continue to push up rents.”
The company added: “Data compiled by Daft.ie shows the extent of the supply shortages in the rental market, as only 1,074 apartments were available to rent across Dublin in May 2017, which is 69 per cent below the average for the series (which began in January 2007). Across the State only 3,084 apartments were available to rent in May, 76 per cent below the average for the series.
“In all, with lead indicators suggesting that a resolution of the housing shortages is a number of years away and the economic outlook remaining positive, the path of least resistance for prices and rents still remains to the upside.”
The Dublin Tenants Association (DTA) organised a meeting with Ires tenants, including some from Tallaght Cross West, last month against rising rents outside of the company’s office.
Mick Byrne is a spokesperson with the DTA, a peer-advocacy and tenant support group.
He commented: “There has been a view within housing policy circles and the Department of Housing that larger landlords would provide better quality housing for tenants than your small-scale landlord who owns one or two properties.
“The idea was that because of the scale, you would get better property management and an interest in stable, long-term tenants.”
According to Mr Byrne, companies like Ires and other REITs have turned this idea on its head as they benefit from the demand in housing.
“What we’re seeing is that Ires and other institutions have a very aggressive strategy to push up rents and squeeze as much money out of each property as possible.”
He cited the high turnover rate of tenants mentioned by Ires as evidence – which allows them to bypass legislation preventing rent increases for two years.
“We have to wake up and smell the coffee,” he said.
“Ires is a shareholding company. They are legally obliged to act in the interest of shareholders. It makes sense from a business point of view to have a high turnover rate.”
Although the DTA is based in Dublin 7, Mr Byrne says that following the protest, the DTA received a number of queries from Ires tenants from Tallaght who voiced their concerns about the company.
Ires Reit were not available for comment.
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