IREIT Global's 1H FY25 Result Review

REIT_TIREMENT
08-29

$IREIT Global SGD(UD1U.SI)$ $IREIT Global EUR(8U7U.SI)$

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

IREIT’s results for 1H 2025 were significantly affected by the full vacancy at Berlin Campus after the expiry of the main tenant’s lease on 31 December 2024. The absence of dilapidation income, which had contributed in 1H 2024, further weighed on performance.

Rental Escalation

IREIT recorded a 3.9% rental escalation in 2Q 2025.

Asset Enhancement Initiative

Construction for the repositioning of Berlin Campus commenced in 2Q 2025 and is scheduled for completion in 2027. Long-term leases have been secured with two hospitality operators, covering 24% of the lettable area. Discussions are ongoing with two potential office tenants to secure commitments for a substantial portion of the remaining office space.

Related Parties Shareholding

  • REIT Sponsor's Shareholding: Favorable

  • REIT Manager's Shareholding: Less Favorable

  • Directors of REIT Manager's Shareholding: Less Favorable

Lease Profile

  • Committed Occupancy: Moderate

  • Highest Annual Lease Expiry in 4 Years: Moderate

  • WALE: Favorable

  • Weighted Average Land Lease Expiry: Favorable

Debt Profile

  • Adjusted Interest Coverage Ratio: Favorable

  • Cost of Debt: Favorable

  • Gearing Ratio: Moderate

  • Fixed Rate Debt Proportion: Favorable

  • Unsecured Debt Proportion: Less Favorable

  • Highest Annual Debt Maturity in 4 Years: Less Favorable

  • WADM: Less Favorable

Diversification Profile

  • Major Sector Weightage: Favorable

  • Top Geographical Weightage: Favorable

  • Top Property Weightage: Less Favorable

  • Top 5 Properties' Weightage: Moderate

  • Top Tenant Weightage: Moderate

  • Top 10 Tenants' Weightage: Less Favorable

Key Financial Metrics

  • Property Yield: Moderate

  • Manager's Fees over Operating Distributable Income: Favorable

  • Operating Distributable Income on Capital: Moderate

  • Operating Distributable Income Margin: Moderate

  • Operating Distribution Proportion: Favorable

DPU Breakdown

  • TTM Distribution Breakdown:90% from Operation10% being Retained 

Trends (Up to 10 Years)

  • Uptrend: Operating Distributable Income over Manager's Fees, Operating Distribution Proportion

  • Slight Uptrend: NAV per Unit

  • Flat: None

  • Slight Downtrend: Adjusted Interest Coverage Ratio

  • Downtrend: DPU from Operations, Committed Occupancy, Top 5 Properties' Weightage, Top 10 Tenants' Weightage, Property Yield, Operating Distributable Income on Capital, Operating Distributable Income Margin

Price Range & Relative Valuation Metrics

  • Dividend Yield: Average for 1y & 3y & 5y; Above +1SD for 10y

  • P/NAV: Average for 1y; Below -1SD for 3y & 5y & 10y

Author's Opinion

Compared to the previous half-year, performance has been materially impacted by the Berlin Campus vacancy. On the debt front, there are no refinancing needs in 2025, though 48% of borrowings will mature in January 2026.

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my own findings and should not be considered as professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decision.

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Comments

  • NatalieTommy
    08-29
    NatalieTommy
    Thanks for the detailed breakdown
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