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IReit Global posts 3.4% drop in Q4 DPU to 0.86 euro cent

IREIT Global's distribution per unit (DPU) fell 3.4 per cent to 0.86 euro cent after retention for its fourth quarter ended Dec 31, 2019 from 0.89 euro cent a year ago.

Gross revenue for the real estate investment trust (Reit) was down 0.7 per cent to 8.9 million euros (S$13.4 million) for the quarter, from nine million euros a year ago, said the Europe-focused real estate investment trust's manager on Wednesday in a regulatory update.

Net property income (NPI) grew 0.1 per cent on the year to 7.49 million euro for the quarter, from 7.48 million euro, on marginal decreases in gross revenue and property operating expenses.

Income to be distributed to unitholders fell 1.8 per cent year on year to 5.5 million euros, from 5.6 million euros.

The distribution for the six months ended Dec 31 amounts to 2.71 Singapore cents per unit, and will be paid on Feb 27 after books closure on Feb 20.

Meanwhile, for the full year ended Dec 31, DPU was 0.6 per cent lower at 3.57 euro cents after retention, versus 3.59 euro cents a year ago, and income to be distributed grew 0.5 per cent to 22.7 million euros. Gross revenue was 1.3 per cent higher at 35.3 million euros, while NPI rose 0.1 per cent to 30.7 million euros for the full year.

Aymeric Thibord, chief executive of IReit Global's manager, said the Reit will be looking to increase the occupancy rate of its Spanish portfolio and bring the under-rented properties nearer to market levels through active asset management.

IReit Global in December 2019 acquired a stake in a portfolio of four freehold office buildings in Spain through a joint venture with Tikehau Capital.

“We will also be exploring possible debt and equity financing options to repay our term loan facility and to exercise the call option granted by Tikehau Capital to acquire its 60 per cent stake, while maintaining an appropriate capital structure for IReit,” Mr Thibord added.

Units of mainboard-listed IReit Global closed flat at S$0.86 on Wednesday before the release of the results.

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