Shares in the State’s largest landlord, Ires Reit, slipped more than 7.3 per cent on Wednesday after Sinn Féin introduced a Bill providing for a three-year rent freeze across the private rental market.
Ires, which had 2,771 residential properties as of the end of June, with more in development, could suffer the most of the listed property entities given its exposure to the rental market.
As much as €70 million was cut from the company’s market value as its shares dipped to €1.686. The company’s market value at the market close on Wednesday was €879 million. This is, however, near its all-time high.
Goodbody analyst Colm Lauder said Sinn Féin’s legislation would go further than European peers by introducing a State-wide freeze on rents for three years. This, he said, would hit the net asset value and “naturally the evaporation of the approximately 4 per cent forward rental growth assumption”.
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