IREIT Global reports 1H21 net property income increased 23 percent

Euro coinsPhoto by Leslie Shaffer

IREIT Global reported Friday its first half net property income increased 23.4 percent on-year to 19.33 million euros mainly on the acquisition of Spanish properties in October.

Gross revenue for the January-to-June period rose 31.6 percent on-year to 23.65 million euros, the REIT said in a filing to SGX.

The distribution per unit (DPU) for the first half came in at 1.43 euro cents, up 14.4 percent from 1.25 euro cents in the year-ago period even as IREIT issued 291.41 million new units in October 2020 to finance acquisitions, the filing said.

In Singapore dollar terms, the DPU is 2.30 Singapore cents, up 17.3 percent from 1.96 Singapore cents in the year-ago period, IREIT said.

IREIT said its properties have performed well.

“Notwithstanding the Covid-19 pandemic situation in Europe, IREIT’s portfolio has remained resilient, underpinned by its strategy of focusing on blue-chip tenant mix and good quality assets in established office areas. For 1H2021, all tenants in IREIT’s portfolio have continued
to pay their rents and none of them have requested for rental rebates or deferrals,” IREIT said in the statement.

The REIT said the office market in Germany and Spain has improved in recent months, with investors showing interest in Germany office real estate.

“Nonetheless, the manager is closely monitoring the possible impact of the future demand for office space, in view of the potential adoption of hybrid working model and flexible working arrangement by companies as a result of the Covid-19 pandemic,” IREIT said. “The completion of the acquisition of a portfolio of 27 retail properties in France in July 2021 is expected to strengthen IREIT’s lease profile and add
further scale and diversification to IREIT’s portfolio.”

The current portfolio includes five freehold office properties in Germany, four freehold office properties in Spain and 27 freehold retail properties in France.