IREIT (UD1U) H1 2025 earnings summary

Executive summary

• Portfolio valuation reached €859.8m as of 30 Jun 2025, comprising 53 properties across Germany, France, and Spain, with a focus on office, retail, and hospitality assets and ongoing Berlin Campus repositioning.

• 1H2025 results were impacted by full vacancy at Berlin Campus, with construction and repositioning works commencing in 2Q2025 after approvals.

• Occupancy rate stood at 89.5% (excluding Berlin Campus), with Spanish Portfolio occupancy improving from 77% to 80% and Parc Cugat Green fully let for the first time since acquisition.

• Distribution per unit for 1H2025 was €0.71 cents, down 26.0% year-over-year, mainly due to Berlin Campus vacancy.

• Net assets attributable to unitholders stood at €519.8 million as of 30 June 2025.

Financial highlights

• Gross revenue for 1H2025 was €26.6m, down 27.5% year-over-year; net property income fell 33.3% to €18.0m.

• Income to be distributed to unitholders decreased 26.0% year-over-year to €9.5m.

• NAV and NTA per unit remained at €0.39 as of 30 June 2025, with SGD NAV per unit up 5.5% to S$0.58 due to currency movements.

• Aggregate leverage rose to 41.1% from 37.7% at 31 Mar 2025, following the S$85m green notes issuance.

• Interest coverage ratio was 6.0x as of 30 Jun 2025, down from 7.6x at end-2024.

Outlook and guidance

• Manager expects to finalize refinancing of German and Spanish portfolios by 3Q2025, aiming to extend earliest debt maturity to July 2027.

• Construction for Berlin Campus repositioning began in 2Q2025, with lease commitments targeted by 1Q2026.

• Financing costs are expected to rise as new borrowings will reflect higher market rates.

• European real estate market shows improved investment and letting activity, but recovery may be tempered by global volatility and geopolitical tensions.

• Focus remains on active asset management and value enhancement, with continued diversification across asset classes and geographies.