IREIT (UD1U) H2 2024 earnings summary

Executive summary

• Pure-play Western Europe-focused REIT with a €857.3m portfolio across Germany, France, and Spain, primarily in office and retail sectors.

• FY 2024 gross revenue increased by 16.3% YoY to €75.6m, driven by full-year contributions from the B&M Portfolio and higher rents from the Decathlon Portfolio and Berlin Campus.

• Net property income rose 7.2% YoY to €53.5m, with income to be distributed to unitholders up 1.5% to €25.6m.

• Distribution per unit (DPU) grew 1.6% YoY to €1.90 cents.

• Portfolio occupancy rate at 88.5% (excluding Berlin Campus), with a weighted average lease expiry of 5.9 years as of 31 December 2024.

Financial highlights

• FY 2024 gross revenue rose 16.3% YoY to €75.6m, mainly from B&M portfolio and higher rents.

• Net property income increased 7.2% YoY to €53.5m.

• Income to be distributed to unitholders grew 1.5% YoY to €25.6m.

• DPU for FY 2024 was €1.90 cents, up 1.6% YoY.

• NAV per unit at €0.39 (S$0.55), down 4.9% (8.3% in S$ terms) from prior year, mainly due to property revaluation and currency effects.

Outlook and guidance

• Manager plans comprehensive repositioning of Berlin Campus into a mixed-use, multi-let asset, with two major hospitality leases already secured.

• Projected capex for Berlin Campus repositioning is €165–180m, including €82m for hospitality leases.

• Absence of income from Berlin Campus during repositioning expected to significantly impact distributions.

• Manager prioritizes increasing portfolio occupancy and yield, with c.49,450 sqm of new leases and renewals secured in 2024.

• Ongoing negotiations to refinance German and Spanish portfolio borrowings by 1H 2025.