IREIT (UD1U) H2 2025 earnings summary

Executive summary

• Portfolio focused on Western Europe, primarily office (75%) and retail (25%) assets across Germany, France, and Spain, with a total valuation of €798.1m as of 31 Dec 2025.

• FY2025 results were impacted by Berlin Campus vacancy after the main tenant's lease expiry, leading to significant declines in revenue, income, and a 42.6% YoY drop in DPU to €1.09 cents.

• Portfolio occupancy improved to 89.4% as of 31 Dec 2025, up from 88.5% a year earlier, excluding Berlin Campus.

• Active asset management and refinancing efforts underway, including Berlin Campus repositioning and successful extension of German Portfolio debt maturity to Jul 2029.

• Asset management and leasing efforts continued to diversify tenant mix and improve occupancy and yield.

Financial highlights

• FY2025 gross revenue fell 33.3% YoY to €50.4m; net property income dropped 38.7% YoY to €32.8m.

• Income to be distributed to unitholders declined 42.7% YoY to €14.7m.

• DPU declined 42.6% YoY to €1.09 cents.

• NAV per unit decreased 12.8% YoY to €0.34; in SGD terms, NAV per unit was S$0.51, trading at a 40.5% discount to market price.

• Finance costs increased 10.6% YoY due to higher loan margins and refinancing.

Outlook and guidance

• Portfolio occupancy rate improved to 89.4% as of 31 Dec 2025, with further gains expected from new leases, especially at Darmstadt Campus.

• Finance costs projected to rise with further refinancing and Berlin Campus repositioning; management is exploring strategic and funding options to mitigate impact.

• Construction for Berlin Campus hospitality segment progressing, with first phase completion targeted for 2Q2027.

• A 10-year lease with a federal tenant at Darmstadt Campus is expected to raise occupancy at that property from 41.3% to nearly 60% in early 2026.

• Ongoing discussions with potential office tenants at Berlin Campus may trigger the launch of the second phase of capital expenditure.