Ires refinances €500m credit facility as property values stabilise

Ires Reit, the largest private residential landlord in the Republic, said on Tuesday that it has refinanced its existing €500 million revolving credit facility in a deal that will leave its annual interest rate at 3.8 per cent, unchanged from 2024.

The company, led by chief executive Eddie Byrne, said that it has increased its flexibility to borrow more under a so-called accordion facility. This has increased to €200 million from €100 million.

The facilities have a five-year term, with the option of two one-year extensions. The existing facility was due to expire in April next year.

“The financing will enable the Group to play a part in the delivery of much-needed new rental accommodation, support our ongoing operations and provide the flexibility necessary to deliver on our strategic ambitions in the years ahead,” said chief financial officer Brian Fagan.

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The lending group includes Bank of Ireland, Barclays Bank Ireland, AIB and ABN Amro.

The refinancing comes within weeks of Ires reporting annual results, which showed the like-for-like value of its property portfolio stabilised in the second half of 2024, following a period of asset writedowns as a result of a spike in interest rates.

Around €145 million of its existing €500 million revolving facility was undrawn at the end of last year. Adding in the €200 million accordion facility gives €345 million of potential debt liquidity, Davy analyst Colin Grant said.

“Ires is also engaged in an asset disposal programme, where it initially planned to raise around €110 million to €115 million from selling 315 properties. This increased to 340 properties. The disposal of 66 properties was completed in 2024 for €19 million, leaving 274 property sales to come over the next few years,” he added.

“IRES now has significant liquidity headroom for the medium to long term and visibility on its cost of debt.”

The company’s loan-to-value ratio stood at 44.4 per cent at the end of last year, down from 45.4 per cent in June, but still coming in at the upper end of its 40-45 per cent target. The company said last month that its ongoing asset disposal programme will be used to manage its LTV ratio.