IREIT Global reports 2H21 net property income rose 34 percent

Euro coinsPhoto by Leslie Shaffer

IREIT Global reported Friday its second half net property income rose 34.4 percent on-year to EUR23.16 million on the consolidation of the Spanish portfolio and the completion of the acquisition of the French portfolio and Parc Cugat.

Gross revenue for the six months ended 31 December increased 43.6 percent on-year to EUR28.52 million, the Europe-focused REIT said in a filing to SGX. 

The distribution per unit (DPU) for the second half was 1.50 euro cents, up 7.9 percent from 1.39 euro cents in the year-ago period, the filing said. 

The REIT issued 11.37 million new placement units and 201.14 million preferential offer units in June-July 2021, the filing said.

In June 2021, IREIT said it would acquire 27 properties in France from sporting goods retailer Decathalon.

For the full year, IREIT Global reported net property income rose 29.1 percent on-year to EUR42.48 million on gross revenue of EUR52.17 million, up 37.9 percent. The full-year DPU came in at 2.93 euro cents, up 11 percent from 2.64 euro cents in 2020, the filing said.

“Supported by a blue-chip tenant mix and diversified asset base, IREIT’s portfolio performance has continued to be resilient in 2021,” the REIT said.

In its outlook, IREIT said office-letting activity in key European cities increased significantly in 2021, compared with 2020, with the second half showing signs of normalization. 

“Coupled with the economic recovery and favourable financing conditions, investor demand for commercial real estate in Europe has also improved over the same period,” IREIT said.

“In view of the adoption of flexible working arrangement by companies and evolving demand for office space, the Manager will also continue to pursue investment and capital recycling opportunities to further diversify IREIT’s asset class exposure and strengthen its income streams,” IREIT said.

Read more details of IREIT Global’s results.