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Europe-focused IREIT Global (IREIT) saw its distribution per unit (DPU) increase 2.8 percent to 1.49 Singapore cents in the second quarter ended 30 June 2018, from 1.45 Singapore cents over the same period last year.
Gross revenue, however, fell 1.8 percent to €8.7 million ($13.7 million), mainly due to the absence of “a one-time tenant contribution of €0.1 million ($0.16 million) received in Q2 2017 for certain capital expenditure previously incurred by IREIT on the property”.
But given the group’s lower property operating expenses, net property income rose 0.6 percent to €7.9 million ($12 million), while distributable income climbed 0.4 percent to €6.5 million.
For the first half of 2018, DPU rose 2.1 percent to 2.95 Singapore cents.
Gross revenue and net property income dropped 1.9 percent and 0.6 percent to €17 million ($27 million) and €15.6 million ($24.6 million), respectively. Distributable income also dipped by 1.2 percent to €12.8 million ($20 million).
In an SGX filing, IREIT’s manager revealed that the €14.9 million ($23 million) increase in fair value of IREIT’s investment properties and last partial repayment of a €1.275 million ($2 million) loan, helped to strengthen the trust’s balance sheet and reduce its aggregate leverage to 38.6 percent as at 30 June.
“With a portfolio backed by blue-chip tenant base and no lease expiry in 2018, IREIT’s properties should continue to deliver stable performance for the rest of the year,” said Aymeric Thibord, CEO of IREIT’s manager.
In fact, the key tenant of Berlin Campus – Deutsche Rentenversicherung Bund – opted not to exercise its lease break option to return part of its leased space next year.
The first Singapore-listed real estate investment trust that mainly invests in European properties, IREIT’s portfolio consists of five freehold properties across the German cities of Munich, Berlin, Bonn, Münster and Darmstadt with a total net lettable area of about 200,600 sq m and 3,400 car park spaces.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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