IREIT (UD1U) Q2 2026 earnings summary

Executive summary

• Achieved resilient operating performance in 1H2026, with continued leasing progress and improved occupancy to 94.4% (excluding Berlin Campus), up from 89.4% at end-2025.

• Portfolio comprises 53 properties across Germany, France, and Spain, focusing on office and retail assets, with a total valuation of €792.1m as at 30 Jun 2026.

• Ongoing repositioning of Berlin Campus into a mixed-use, multi-let asset; first phase of hospitality segment targeted for Q3 2027 completion.

• Distribution per Unit (DPU) was €0.37 cents, broadly stable compared to 2H2025 but down from €0.71 cents year-over-year.

Financial highlights

• Gross revenue for 1H2026 was €25.97m; net property income was €17.09m.

• Distributable income to unitholders dropped 47.5% to €5.02m; net loss attributable to unitholders was €22.46m.

• Finance costs increased 53.7% due to higher hedging interest rates on refinanced German portfolio.

• Net assets attributable to unitholders fell 6.1% to €423.3m; NAV per unit declined to €0.31.

• DPU decreased 2.6% sequentially from 2H2025.

Outlook and guidance

• European real estate market sentiment is improving, with investment volumes up 6% year-over-year in Q1 2026 and further growth expected.

• Manager expects to finalize refinancing of Spanish Portfolio in 2H2026, extending maturity to December 2029.

• Active leasing and asset management are expected to support portfolio resilience and further improve occupancy and yield.

• Higher finance costs anticipated as a near-term headwind during Berlin Campus repositioning.