Residential Properties in Ireland REIT Plc (IRES) is a multi-unit residential rental firm and REIT concentrating on the Dublin and other major Irish cities’ property markets. It is a constituent member of the ISEQ 20 and is listed on Euronext Dublin, with a market capitalization of €873 million as of 31 January 2020. The London Stock Exchange has a secondary listing for it.
IRES was launched on the Irish Stock Exchange in April 2014 and was primarily backed by CAP REIT, a publicly traded Canadian firm. Certain CAP REIT subsidiaries continue to manage IRES on an outsourced basis (TSX: CAR.UN).
As of January 2020, IRES is Ireland’s largest private landlord, with approximately 3,884 units under its management.
Is IRES REIT a good investment?
The Price-to-Earnings Ratio (P/E) is a measure of PE vs. Industry: Based on its PE Ratio (8.6x), IRES is a decent value when compared to the European REITs industry average (15.9x). PE versus. Market: When compared to the Irish market, IRES’ PE Ratio (8.6x) indicates that it is a solid buy (23.3x).
Who is Margaret Sweeney?
Margaret Sweeney is the CEO of Ireland’s largest landlord, Ires Reit. She stated that Ires Reit’s income has increased “show the company’s great resiliency.” The landlord organization recorded a 35% increase in the number of units available for rent, up from 2,771 units at the same time last year. The additional units are spread among 42 houses in Dublin and Cork.
Net rental income (NRI) increased by 30.2 percent to €29.6 million, up from €22.7 million the previous year. Acquisitions and organic rental growth account for the increase.
During COVID-19, Ires Reit, like many other companies, introduced a “work from home” policy. The group stated in the report: “We’ve improved our cleaning and disinfecting at all of our residences, and we’ve started a regular communication campaign with residents about Covid-19.
“During the early stages of the pandemic, we limited our repairs and maintenance on existing properties to required works to ensure the safety of our inhabitants, but we have since restored to full service.”
Ms. Sweeney went on to say: “To date, rent collections throughout our residential portfolio have been high, but given the ongoing uncertainty surrounding the Covid-19 epidemic, this may not be typical of rent collections in the future months.”
How do I invest in IRES?
Find the stock using its name or ticker symbol – IRES – and do some research before deciding whether it’s a good investment for you. Invest now or later. With a market order, you can buy as many shares as you like, or you can use a limit order to defer your purchase until the stock hits a certain price. Keep an eye on your money.
How many REITs are there in Ireland?
Regulating real estate investment trusts has not been as successful as I had thought. You might be led to assume that Ireland is teeming with real estate investment trusts (REITs), but this is not the reality.
Only four Reits have ever existed in Ireland, and only one of them, Ires Reit, can be considered a substantial participant in the Irish residential market.
So, even if Reits were a problem – which they aren’t – they could only ever be a small part of the solution.
Taxation is one of the most serious charges leveled against Reits. Reits, according to popular belief, allow investors to avoid paying taxes while also giving them an unfair advantage in the market.
Reits are required to transfer 85 percent of their income to shareholders as dividends, which are subsequently taxed. You would face a double taxation problem if you imposed a tax prior to distribution, making the investment unappealing. Avoiding the risk of double taxation was the driving force behind Reits; otherwise, any rational overseas investor would have avoided Ireland like the plague.
As an example, a dividend withholding tax of 25% is the minimum tax that an overseas institutional investor must pay in Ireland on income received. If that income had previously been taxed at (say) 25% within the Reit, the investor would be looking at a quite unappealing 50% tax rate, and that’s without considering the possibility that other investors would face marginal tax rates that would push the overall tax burden over 80%. Not to mention any capital gains taxes that may be imposed when investors sell their shares.
Who is IRES?
In Greek mythology, Iris is the personification of the rainbow and a messenger of the gods (for example, in Homer’s Iliad). She was the daughter of Thaumas and the ocean nymph Electra, according to the Greek poet Hesiod. She had the extra task of transporting water from the River Styx in a ewer whenever the gods had to swear a serious pledge, at least according to Hesiod’s works. Any god or goddess who lied would be rendered unconscious for a year. Iris was usually depicted with wings and the herald’s staff, as well as a vase, in art. She was depicted serving wine to the gods or leading them to Peleus and Thetis’ wedding.
How are REITs taxed in Ireland?
REITs (Real Estate Investment Trusts) are one method in which the Irish government’s tax policy benefits some investors in Irish real estate. A REIT is an Irish resident corporation that earns at least 75% of its income from renting property, whether commercial or residential, as defined by the Finance Act 2013. A REIT is exempt from paying Corporation Tax on rental revenue and gains on property dispositions, and it is also excluded from paying Capital Gains Tax on property dispositions. A corporation must meet specific requirements to become a REIT, including paying 85 percent of profits to shareholders as a dividend each year.
In comparison to the traditional system, the Irish REIT regime eliminates tax at the corporate level and shifts the entire tax burden to shareholders. The issue emerges when we consider how these dividends are taxed. The dividends received by an Irish resident individual who owns shares in an Irish REIT will be subject to Income Tax and USC. Again, a combined rate of 51 percent is possible.
REITs are required to deduct a 25% withholding tax from all dividend payments. This is true for both residents and non-residents. The withholding tax serves as a deposit against the final liabilities of the Irish resident shareholder.
How do the real estate investment trust companies operates?
Most REITs follow a simple and easy-to-understand business model: the firm makes income by leasing space and collecting rent on its real estate, which is subsequently distributed to shareholders in the form of dividends. REITs must pay out at least 90% of their taxable income to shareholders, with the majority paying out 100%. Dividends are paid to shareholders, who then pay income taxes on them.
mREITs (or mortgage REITs) do not own real estate; instead, they finance it and profit from the interest on their assets.
Why do REITs not pay taxes?
A REIT is required by law to deliver at least 90% of its taxable revenue in the form of dividends to its owners each year. This allows REITs to transfer their tax burden on to their shareholders rather than paying federal taxes.
Which virus has IRES?
The hepatitis A virus’s internal ribosome entry site (IRES) is represented by this family. HAV IRES is a 450-nucleotide sequence found in the Hepatitis A virus RNA genome’s 735-nucleotide 5′ UTR (untranslated region). Cap and end-independent mRNA translation in the host cell is enabled by IRES elements. The IRES accomplishes this by mediating internal translation initiation by recruiting a ribosomal 40S pre-initiation complex straight to the initiation codon, bypassing the need for the eukaryotic initiation factor, eIF4F.
Do humans have IRES?
Recent cellular IRES research has found that known human IRES elements contain high GC content, forming unique ITAF interaction sequences or structures (11, 22). However, some IRESs continue to be distinguished by their high AU-rich composition (29).
Why do REITs not pay taxes Ireland?
Shareholders of REITs are taxed. Because the REIT is a publicly traded firm, non-resident investors will not be subject to Irish capital gains tax. Investors may, however, be subject to similar taxes in their native jurisdictions.