IREIT Global, which has a portfolio of office and retail properties in Western Europe, has reported an occupancy rate of 89.6% for the 3QFY2024 ended Sept 30, 0.2 percentage points lower q-o-q from lower occupancies in its Spanish portfolio.
The REIT’s weighted average lease expiry (WALE) stood at 4.6 years, down from 4.9 years as at June 30. Over 61% of its leases will expire in 2029 and beyond.
As at Sept 30, the REIT owns 53 properties spanning a lettable area of 425,116 sqm (4.58 million sq ft). It has a total portfolio valuation of EUR855.6 million ($1.22 billion), unchanged q-o-q.
As at the same period, the REIT’s aggregate leverage inched up by 0.5 percentage points q-o-q to 37.7%, but remaining lower than the Singapore REIT sector average of 39.4%. As at Sept 30, 97.1% of IREIT’s bank borrowings are hedged.
During the 3QFY2024, the REIT manager signed three new leases at its Darmstadt campus in Germany. There is also a new lease, spanning 2,300 sqm within the campus that is expected to be signed “soon”. When confirmed, this will increase the property’s occupancy rate to 45% from 36% previously. At its Berlin campus, the REIT manager signed 20-year lease agreements with two hospitality operators for short- and long-term stays. The agreements, which total 17,000 sqm of space, is targeted to be signed by 1Q2025. In Munster, IREIT said about 5,000 sqm was vacated by one of its tenants on Nov 1, although it is in advanced negotiations with two potential tenants to lease some 3,500 sqm by 1Q2025.
In Spain, the REIT manager secured three new tenants in its Madrid properties for a total of 2,200 sqm with a weighted average unexpired lease term of around seven years. The REIT manager also secured one tenant renewal for 2,500 sqm of space with a weighted average unexpired lease term of five years. The renewal will increase the occupancy rate of its Spanish portfolio to 73%, says IREIT.
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In France, the REIT has two development projects that are ongoing in two selected properties within the B&M portfolio.
Units in IREIT Global UD1U SGD closed flat at 29 cents while IREIT Global EUR closed flat at 25 Euro cents on Nov 12.
