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Distributable income grew by 0.7% to €6.2 million (S$9.3 million), brought about by higher gross revenue.
IREIT Global (IREIT) revealed that its net property income for the financial quarter ended 30 September 2019 (3Q2019) amounted to €7.7 million (S$11.5 million), a 2.8% year-on-year (YoY) rise.
Their distributable income grew by 0.7% to €6.2 million (S$9.3 million), brought about by higher gross revenue. Meanwhile, their distribution per unit (DPU) for 3Q2019 amounted to 0.87 € cents (S$1.31), compared to a DPU of 0.88 € cents (S$1.32) in 2018.
For the nine months ended 30 September 2019 (9M2019), net income equalled €23.2 million (S$34.8 million), while distributable income rose 1.2% to €19.2 million (S$28.8 million). This resulted in a 0.4% marginal increase in 9M2019 DPU to 2.71 € cents (S$4.07).
In Singaporean Dollar (SGD) terms, DPU for the period was 2.1% lower at 4.28 Singapore cents because of weaker Euro and SGD exchange rates.
The 9M2019 DPU represents an annualised distribution yield of 7.6%, on the basis of IREIT’s closing unit price as at 3Q2019’s last trading day.
“IREIT’s portfolio remains supported by its blue-chip tenant base and healthy leases. With the commencement of the new lease at Münster South Building from 1 July 2019, 99.6% of its leases will be due for renewal only in FY2022 and beyond,” said Aymeric Thibord, CEO of IREIT Global Group Pte. Ltd.
Faced with slowing business activity, letting demand overall may ease in the coming year. Nonetheless, in IREIT’s case, this should be mitigated by its 99.7% occupancy rate and weighted average lease to expiry (WALE) of 4.4 years.
“To build scale and diversification, we will also continue to actively pursue new investment opportunities that will complement IREIT’s existing portfolio, as well as review its portfolio for value creation and repositioning opportunities,” Thibord added.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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