IReit Global posts 1.4% dip in H1 DPU; distributable income up 20.4% 

THE manager of Europe-focused real estate investment trust IReit Global posted distribution per unit (DPU) of 1.41 euro cents for the first half ended June, down 1.4 per cent from DPU of 1.43 euro cents in the corresponding period last year.

The decline was due to 100 per cent of the management fees being paid in cash from FY2022.

Had the management fees been also paid fully in cash in the year-ago period, DPU would have been 3.7 per cent higher year on year.

Income available for distribution rose 20.4 per cent to 18.2 million euros (S$25.7 million) in H1, up from 15.1 million euros in the previous year.

Gross revenue jumped 27.2 per cent to 30.1 million euros, while net property income (NPI) grew 26.4 per cent to 24.4 million euros.

The increase was mainly due to the contribution from the acquisition of the French portfolio and Parc Cugat in Q3 FY2021.

Portfolio occupancy remained stable at 95 per cent as at end June; the weighted average lease expiry (WALE) improved to 4.7 years, from 3.7 years in the preceding quarter.

The WALE improvement was largely due to a 6-year lease extension for the entire Bonn Campus, and a 12-year major new lease for approximately 5,300 square metre (sq m) data-centre space at Sant Cugat Green signed in the second quarter.

This contributed to the increase in IReit's portfolio valuation to above the 1 billion euro mark.

As at Jun 30, IReit's aggregate average fell to 30.8 per cent, from 32.1 per cent as at end March.

The Reit manager said it is actively marketing the space at Darmstadt Campus, the entire lease of which expires at the end of November.

As at end June, Darmstadt Campus contributed to about 10.8 per cent of IReit's total rental income.

"With the outlook likely to remain challenging due to the significant economic and geopolitical uncertainty, our role is to continue having an active asset management approach to maintain our performance," said Louis d'Estienne d'Orves, chief executive officer of IReit's manager.

Units of IReit Global closed 0.8 per cent or S$0.005 higher at S$0.61 on Aug 11, before the announcement of the results.

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