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IREIT Q1 DPU meets target of 1.04 euro cents

IREIT Global hit its first-quarter distribution per unit indication of 1.04 euro cents as distributable income just missed its own forecast by 0.6 per cent, the real estate investment trust (Reit) that holds German office assets announced on Thursday.

On a Singapore-dollar basis, distribution per unit is 1.61 Singapore cents, or 8 per cent shy of forecasts, based on existing hedging arrangements at an average exchange rate of about S$1.55 per euro. IREIT units last traded at 81.5 Singapore cents on Thursday before the results were announced.

Net property income of five million euros for the quarter missed IREIT's forecast by 1.1 per cent, as did gross revenue of 5.6 million euros. The variance was largely due to the pro-rata effects of an upward rental adjustment for the Bonn property that was only expected to take place in the second half 2015.

IREIT said that it sees strong demand for German commercial real estate, and is actively seeking acquisition opportunities.