I-Res Reit flags rent concerns amid Covid-19 downturn
The country’s largest residential landlord has warned of uncertainty over rent collection levels and unforeseen impacts on its performance due to the ongoing Covid-19 crisis.
Irish Residential Properties Reit – or I-Res – said trading levels during the first quarter of the year met its expectations; with occupancy rates in its properties at 99% and net rental income margin at just under 81%. It said rent collection rates were around 98% in April. Furthermore, the company has maintained its dividend policy, paying out a combined €16.2m in relation to its 2019 performance, in March.
However, regarding rent collection going forward, the company - which has properties in Cork and Dublin - said visibility is less clear. “There is no certainty in relation to the rate of rent collection in the upcoming months, given the ongoing uncertainty related to the Covid-19 pandemic and Government measures,” it said.
“The social and economic consequences of the Covid-19 pandemic could result in changing business conditions as the situation evolves with impacts on the company’s business that we cannot foresee at this time,” the company said in a trading update.
The company said it has significant liquidity to manage the current market upheaval.
Meanwhile, Hammerson – the British shopping centre operator which owns the Dundrum Town Centre in Dublin – has pulled out of a £400m (€460m) deal to sell seven retail parks to private equity firm Orion.
