Irish Residential Properties REIT is betting that changes to Ireland’s rental market could finally unlock growth opportunities for institutional landlords after the Dublin-listed landlord said occupancy across its portfolio remained above 99% in the first quarter.

“The new regulations are already having a positive impact on market conditions with improved activity in the development space, an increase in international capital being allocated to Ireland and a significant increase in transaction volumes relating to apartment blocks,” IRES CEO Eddie Byrne said in a statement following a Q1 update on the company's trading.

Rent collection rates also stayed above 99%, while net rental income margin held firm at 78% during the quarter, following gains made in 2025, as IRES REIT continued to benefit from operational efficiencies and the performance of its internally managed platform.

The update comes a few months after Ireland introduced major reforms to its rental framework after strict rent controls were blamed for dampening institutional appetite for the Irish residential rental sector.

Byrne said the first month operating under the new rules had been “in line with expectations” and that the changes were already helping improve market sentiment.

Earlier this year, the REIT agreed to forward-purchase 77 apartments for €31.75M, its first acquisition in several years, in a deal expected to deliver a net initial yield of roughly 5.25% once fully leased. It is to be funded through the company’s ongoing asset recycling programme.

IRES also said disposals had continued to achieve premiums of more than 25% above book value, allowing the company to recycle capital while keeping loan-to-value ratios within its target 40% to 45% range.

The company added in its update that more than 85% of its drawn debt remains fixed until maturity, insulating it from continued volatility in interest rates and wider geopolitical uncertainty.

IRES said the combination of the new rent regulations, housing policy initiatives, taxation changes introduced in the budget, and proposed amendments to sustainable design standards had triggered a notable rebound in activity.

For IRES, the improved sentiment may also create opportunities for consolidation in a fragmented market. Byrne said the company would continue evaluating opportunities to enhance shareholder value through acquisitions, operational efficiencies and capital allocation from disposals.