IREIT Global’s portfolio valuation as at Dec 31, 2023 stood at 899 million euros (S$1.3 billion) across its properties, based on the latest external valuation conducted by Savills.

This was 2.6 per cent lower than the real estate investment trust’s portfolio value of €922.7 million as at Jun 30, 2023, and 5.4 per cent lower than the  €950.5 million it reported the year before.

Louis d’Estienne d’Orves, chief executive officer of the manager, said that since the Covid-19 pandemic and interest rate hikes, IReit’s office portfolio valuation has fallen by only 5.6 per cent, supported by active leasing and stable leases; its retail portfolio valuation actually rose by 1.4 per cent, he said. 

The September 2023 acquisition of 17 retail properties in France has highlighted the importance of the manager’s strategy of diversifying the Reit’s portfolio from geographical and asset-class standpoints.

On a like-for-like basis, excluding the 17 retail properties, IReit’s portfolio would have fallen by 13.6 per cent year on year, triggered mainly by the weak performance of its properties in Germany, the manager said.

Compared to its total initial purchase consideration of 775.6 million euros, IReit’s portfolio valuation as at Dec 31, 2023 was still up by 123.4 million euros or 15.9 per cent.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

As at Dec 31, IReit’s gearing stood at approximately 37.4 per cent. This was higher than the 34.4 per cent it reported in its Q3 2023 update. 

The manager now anticipates IReit’s net asset value per unit to be approximately 40 euro cents, it said.

It said: “Based on the last closing unit price of S$0.405, IReit still trades at an attractive 30.7 per cent discount to its NAV.”

Units of IReit were down 1.2 per cent or S$0.005 at S$0.40 at the close of trading on Monday (Jan 22).