IReit Global posts 87% occupancy rates for Q1 2023

IREIT Global on Tuesday (Apr 25) reported 87 per cent occupancy rates for Q1 2023, down slightly from 88.3 per cent in Q4 2022. This was mainly due to lower occupancy at Spanish properties Il-lumina and Sant Cugat Green.

Rents were up 3.4 per cent in the quarter compared to the year prior, and was a result of step-up rents and indexing to the consumer price index.

Weighted average lease expiry was 4.8 years in Q1 2023. The aggregate leverage for the quarter stood at 32.3 per cent compared to 32 per cent in Q1 2022.

The real estate investment trust (Reit) said that weighted average interest rates are at 1.9 per cent per annum, with 96.6 per cent of bank borrowing hedged. There are also no near-term refinancing requirements, and all borrowings will mature from 2026 onwards.

Looking ahead, IReit Global said the office market in Europe is slowing down, with office investments falling 21 per cent year on year in 2022. It added that high financing costs, new workplace practices and energy regulations will dampen demand in 2023. An uncertain economic outlook and high operating costs will also result in higher vacancy and muted leasing activity.

Units of IReit Global closed unchanged at S$0.505 on Tuesday.