Irish Residential builds on 2025 gains after Irish rental law changes
Irish Residential REIT PLC on Friday reported a sharp rise in pretax profit for the first half of 2026, driven by a non-cash gain from the revaluation of its investment properties.
The private rental accommodation provider cited changes to Irish rental law as a key reason for its continued growth, calling them "a significant and welcome step forward for the Irish property rental sector".
In March, Ireland's new housing regulations came into effect. The new rental rules introduced stronger tenant protections, national rent control and changes to the rules under which landlords can end a tenancy.
"The revised framework has unlocked renewed capital flows into the sector, which should improve development viability over time and support a healthier, more sustainable rental market," the company said.
Pretax profit surged to EUR48.0 million from EUR16.3 million, driven by the non-cash fair value gain on the company's assets and underpinned by portfolio performance and stable yields, Irish Residential said.
Revenue from investment properties rose 1.1% to EUR43.1 million in the first half ending June 30, from EUR42.6 million a year earlier.
Net rental income increased 1.2% to EUR33.7 million from EUR33.3 million.
The net movement in fair value of investment properties was a EUR31.0 million gain, compared with a EUR330,000 gain a year earlier. Irish Residential cited stable yields across the wider residential market, rental growth from new market leases and annual renewal uplifts as key reasons for the increase.
Irish Residential declared a first-half dividend of EUR0.0250 per share, up 5.9% from EUR0.0236 a year ago.
Like-for-like residential annualised passing rent growth was 2.2%, compared with a 0.3% increase a year earlier.
Looking forward, the company said Irish Residential "enters the second half of 2026 with a stronger platform, improved efficiency, a more supportive regulatory framework and a constructive investment backdrop".
Chief Executive Officer Eddie Byrne highlighted the company's agreement to acquire 77 apartments in Naas, Ireland, as a demonstration of its "strategic reinvestment of capital".
"We continue to actively consider further opportunities to reinvest and grow the business across a healthy pipeline as market activity continues to build momentum," Byrne said. "We remain focused on maintaining a strong balance sheet, managing LTV within our target range and assessing all capital allocation options against our objective of maximising long-term shareholder value creation. As a long-term Irish investor with permanent capital, we hold a unique position in the market and our approach enables us to play a vital role in addressing the country's ongoing residential accommodation needs."
Shares in Irish Residential were up 3.1% to EUR1.13 on Friday morning in Dublin.
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