Europe-focused IREIT Global UD1U has reported a lower distribution per unit (DPU) of 1.87 euro cents for the FY2023 ended Dec 31, 2023, down 30.5% y-o-y based on the total issued units as at Dec 31.
However, taking into account the enlarged units following the preferential offering of 186,098,518 units issued on Jul 19, 2023 and acquisition fees paid in units on Sept 27, 2023, the decrease in DPU is slightly smaller at 19%.
The REIT will distribute a DPU of 0.94 euro cents for the period of Jul 1, 2023 to Dec 31, 2023, on Mar 21, 2024.
Its net asset value (NAV) per unit in Singapore dollar terms stood at 60 cents per unit as at Dec 31, 2023, 22.1% lower than the same period a year ago. The REIT says that this is due to the decrease in valuation of the investment properties and enlarged number of units, partially offset by stronger euro and Singapore dollar currency exchange rates.
IREIT reported a 5.4% increase in its gross revenue from €61.65 million in FY2022, to €64.98 million in FY2023.
This was mainly due to a contribution from acquisition of its B&M portfolio in France, starting from Sept 2023, and a dilapidation cost payable by the main tenant at its Berlin campus.
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IREIT’s net property income came in at a 2.3% y-o-y increase for the FY2023 to €49.9 million, from €48.8 million in FY2022.
The REIT reported a 90.4% portfolio occupancy as at Dec 31, 2023.
It has a 37.9% aggregate leverage as at Dec 31, 2023, an increase from 32% from the same period a year ago, due to drawdown of new borrowings for capex and acquisition of B&M portfolio and lower valuation of investment properties.
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Its weighted average debt maturity decreased to 2.8 years on Dec 31, 2023, from 3.5 years in the same period a year ago.
IREIT completed its acquisition of 17 retail properties in France, occupied by B&M Group on Sept 5, 2023 at a purchase consideration of €76.8 million.
It also completed divestment of Il∙lumina, a Spanish office building, on Jan 31, 2024 at sale price of €24.5 million, 6.1% above independent valuation as at Dec, 31, 2023.
It intends to use these net proceeds for financing higher yielding assets or refurbishment of existing assets.
Units in IREIT closed flat at 38.5 cents on Feb 22.
