IReit Global H1 DPU rises 14.4% to 1.43 euro cents

EUROPE-FOCUSED IReit Global posted a 14.4 per cent rise in distribution per unit (DPU) to 1.43 euro cents for H1 ended June, on the back of its increased footprint in Spain.

Gross revenue rose 31.6 per cent to 23.6 million euros, while net property income was up 23.4 per cent to 19.3 million euros. The real estate investment trust (Reit) manager retained 1.5 million euros of income.

The revenue rise was mainly due to the consolidation of the operating results of IReit's Spanish portfolio. The Reit had acquired the remaining 60 per cent it did not already own in a portfolio of Spanish office properties in October last year.

IReit said that all its tenants continued to pay their rent, and none of them have requested for rental rebates or deferrals in H1. In June, Deutsche Rentenversicherung Bund, the major tenant at Berlin Campus, did not exercise its break option to return part of its leased space to IReit in 2022. The lease will therefore now expire in June 2024.

"We are also in advanced discussions with a few tenants who have break options and lease expiries in 2022, and exploring the multi-let approach to protect IReit's future occupancy rate and rental income," said Louis d'Estienne d'Orves, chief executive of the Reit manager.

It has successfully secured three lease extensions and two new leases at the Spanish properties in July through these efforts, he added.

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Looking ahead, the acquisition of 27 retail properties in France in July is expected to strengthen IReit's lease profile, the manager said. It also plans to continue actively pursuing acquisitions.

In a separate announcement on Friday, IReit's manager proposed the divestment of the multi-storey car park located adjacent to Darmstadt Campus for 9.5 million euros. The sale is expected to be completed in Q4.

In addition, the manager will be implementing the dual currency trading in euros and Singapore dollars for IReit with effect from Aug 17. It will also change the distribution currency of IReit from Singapore dollars to euros, starting with the distribution for June to December.

Units of IReit closed at S$0.645 on Friday, up 0.78 per cent.