Irish Residential Properties REIT's (IRES) latest trading update underscored a “stable performance with occupancy remaining high”, according to equity researchers at Barclays.
IRES displayed strong cash flows despite “further increases in employee costs, utilities and repairs and maintenance during the second half”, noted the bank's analysts.
Occupancy rates remain high, at 99.3% among the REIT’s holdings, while the proportion of fixed debt has increased from 30% to 72%, with 34% of all total debt fixed at 4.25%.
Average cost of debt was 2.25% for the group, though the Barclays' analysts calculated an increase to 38% by the end of the 2023 financial year.
IRES’s Average rent on the portfolio is 13% below market rent for new tenancies.
The analysts gave the trust an 'overweight' rating and a target share price of 1.45 euros, suggesting 33% upside against the latest market price of 1.09 euros. Dividend yields are currently at 4.94%.