(Alliance News) - Irish Residential Properties REIT PLC on Friday said it started a strategic review to maximise returns to shareholders as it reported a sharp widening in annual loss amid higher interest rates.

The private rental accommodation provider said pretax loss widened to EUR114.5 million in 2023 from EUR11.9 million a year prior.

Net rental income climbed 3.3% to EUR67.9 million from EUR65.7 million.

Notably, the negative net movement in fair value of investment properties increased to EUR141.8 million from EUR45.6 million. Further, the firm highlighted that finance costs increased 59% to EUR26.7 million from EUR16.8 million, reflecting higher interest rates.

The company also cited higher operating costs amid higher inflation.

EPRA NTA net asset value per share declined 17% to 131.7c per share as at December 31, from 159.1c a year ago.

The company said it intends to declare a final dividend of 2.00 euro cents per year, down 29% from 2.81c a year ago. This would bring the total dividend to 4.45c, down 13% from 5.11c.

Further, the company announced it is starting a strategic review under it will consider all strategic options to maximise value for shareholders.

Outgoing Chief Executive Margaret Sweeney said: "We are confident in our continuing focus and progress on optimising our portfolio through asset recycling, including demand for individual units at accretive values, as well as maintaining operational excellence and cost management, and improving the sustainability credentials of our assets. We also continue to be focused on leveraging our platform for ancillary revenue, as well as maximising revenue from our existing assets."

She added: "We intend to maintain an important and active role in the delivery of new housing supply to the Irish market over the long-term. The company is well positioned to do so, through its strategy of prudent asset management and disciplined capital management, strong track record of execution, and supported by a robust balance sheet. In line with our existing strategy of operating primarily in the Irish mid-market, our focus remains on generating secure, recurring income streams with a high degree of visibility to support our dividend policy for shareholders. We continue to be acutely aware of the inflationary and cost of living challenges faced by our residents and we are confident that our well located, fully serviced, modern energy-efficient residential units represent good value in the current market."

Irish Residential shares fell 3.5% to 99 euro cents each on Friday morning in Dublin.

By Tom Budszus, Alliance News slot editor

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