Europe-focused IREIT Global UD1U ’s UD1U portfolio valuation as at Dec 31, 2023, stood at EUR€899.0 million ($1.31 billion), a 5.4% y-o-y decrease from its valuation as at Dec 31, 2022.
The independent valuation from newly appointed valuer Savills Advisory Services Limited was a decrease of 2.6% from its portfolio valuation of €950.5 million as at end-June last year.
According to the manager, since the Covid-19 outbreak and rise in interest rates, the REIT’s office portfolio valuation has decreased by 5.6% supported by active leasing and stable leases, while its retail portfolio valuation has increased by 1.4%.
“The recent acquisition of the 17 retail properties in France in September 2023 has also highlighted the importance of the manager’s strategy implemented since 2019 to continue diversifying IREIT’s portfolio from a geographical and asset class standpoint, and has cushioned the decrease in the German portfolio valuation,” says Louis d’Estienne d’Orves, CEO of the manager.
On a like-for-like basis without the 17 retail properties, IREIT’s portfolio would have decreased by 11.1% half-on-half and 13.6% year-on-year, mainly driven by Germany which was one of the weakest performing major economies in 2023.
Overall, compared to the total initial purchase consideration of EUR775.6 million, IREIT’s portfolio valuation as at 31 December 2023 was still up by EUR123.4 million or 15.9%.
See also: Changes in ICR, leverage to come into effect immediately, with additional disclosures in March
The manager now anticipates IREIT’s aggregate leverage to be approximately 37.4% as at Dec 31, 2023 (excluding Il∙lumina which is held for sale) and net asset value per unit to be approximately €0.40.
Units in IREIT closed 0.5 cents lower or 1.24% down at 40 cents on Jan 22.
