IReit Global’s H1 DPU rises 3.2% to 0.96 euro cent
The group’s aggregate leverage at 37.2% as at Jun 30
EUROPE-FOCUSED real estate investment trust (Reit) IReit Global posted a distribution per unit (DPU) of 0.96 euro cent for the first half ended Jun 30, 2024. This is 3.2 per cent higher than its DPU of 0.93 euro cent a year ago.
Meanwhile, income to be distributed increased 3.9 per cent year on year to 12.9 million euros (S$18.7 million).
Its revenue for the first half rose 28.8 per cent year on year to 36.6 million euros, while net property income increased 22.8 per cent to 27 million euros.
The group attributed the increase in revenue to the completion of its acquisition of retail properties in France under the discount retailer B&M.
Dilapidation cost paid by the main tenant at its office property in Berlin and rental income from its office property in Darmstadt also contributed to higher revenue from its Germany portfolio.
The group’s aggregate leverage was 37.2 per cent as at Jun 30, while its interest coverage ratio stood at about 7.4 times for the trailing 12 months period from Jul 1, 2023 to Jun 30, 2024.
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Louis d’Estienne d’Orves, CEO of the Reit’s manager, said that lower inflation, rising real wages and further interest rate cuts are expected to support a recovery of the European economy and revitalise the European real estate market.
“To enhance IReit’s portfolio value proposition and capture the upside potential, we intend to embark on a strategic repositioning of Berlin Campus into a sustainable mixed-used asset,” he said. The campus is one of five office properties under IReit’s Germany portfolio.
The group will also focus on securing new leases and lease renewals to improve IReit’s overall portfolio occupancy rate, he added.
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Units of IReit Global closed at S$0.285 on Tuesday, up 1.8 per cent or S$0.005, before the release of its financial results.
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