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IReit Global DPU down 1.1% to 0.89 euro cent for Q1
EUROPE-FOCUSED real estate investment trust IReit Global's first quarter distribution per unit (DPU) was 0.89 euro cent, down 1.1 per cent from 0.90 euro cent for the year-ago period.
There was marginal change in the Reit's results versus the year-ago period. Net property income was 7.6 million euros for the quarter to March 31, down 1.8 per cent from 7.7 million euros previously, mainly due to an increase in property operating expense by 30.2 per cent.
Income to be distributed to unitholders was 5.66 million euros, edging down 0.5 per cent from 5.68 million euros. Gross revenue rose 1.4 per cent on year to 8.7 million euros from 8.6 million euros a year ago.
IReit, whose portfolio comprises five freehold properties in German cities, said sound leasing activity, falling vacancy rates, rising rents and favourable interest rates have continued to support the German office real estate market.
On April 30, Singapore-listed property developer City Developments Limited paid S$77.7 million to acquire a 12.4 per cent stake in IReit Global and half of the European property trust's manager. Tikehau Capital, which previously owned 84.5 per cent of the trust's manager, also increased its stake in IReit Global, almost doubling it to 16.4 per cent from 8.5 per cent.
IReit Global said the strategic investment is in line with its strategy to have a strong and diversified unitholder base and is expected to strengthen the Reit's capabilities to pursue its growth plans.
Aymeric Thibord, chief executive officer of the trust's manager, said IReit intends to "continue to undertake various initiatives to upkeep the existing properties and retain its existing tenants" and also "seek further diversification and scale via acquisitions to strengthen IReit’s portfolio, even if this may have some negative impact on distributions in the short term".