Ireit Global Reports Stable DPU for Second Half of FY2024
IREIT Global, the Europe-focused real estate investment trust (Reit), has announced a distribution per unit (DPU) of 0.94 euro cents for the second half of financial year 2024 ended December, unchanged from the year-ago period.
Distribution and Financial Highlights
The DPU will be paid out on March 27, according to a statement by Ireit Global Group, the Reit’s manager, on February 26.
Income to be distributed dipped 0.9% to €12.7 million (S$17.8 million), while revenue increased 6.6% to €38.9 million, and net property income declined 5% to €26.5 million.
Revenue Growth Driven by Acquisitions and Rental Income
The higher revenue was primarily driven by the acquisition of the B&M portfolio in France in September 2023, recognition of dilapidation cost payable by the main tenant at Berlin Campus, higher rental income from Darmstadt Campus, and higher rental rates at Berlin Campus effective from July 2024.
Full Year 2024 Financial Performance
For FY2024, DPU was 1.9 euro cents, 1.6% higher than the year-ago period.
Income to be distributed rose 1.5% to €25.6 million, in the absence of rent-free periods granted to tenants in FY2023. Higher interest income, lower administrative costs, and other trust expenses also contributed to the increase.
Revenue was up 16.3% to €75.6 million, and net property income rose 7.2% to €53.5 million.
Leverage and Interest Coverage
Aggregate leverage ratio was 37.6% as at end-December, slightly lower than 37.9% as at December 31, 2023. Weighted average lease expiry stood at 5.9 years as at December 31, compared to 5.8 years the preceding quarter. Interest coverage ratio was 7.6 times for FY2024, compared to FY2023’s seven times.
Repositioning Project and Capital Expenditure
The trust is in discussions with banks to refinance existing borrowings for the Reit’s German and Spanish portfolios by the first half of 2025. Once completed, Ireit Global will have no debt maturing until July 2027, though financing costs are expected to increase in tandem with the high interest-rate environment.
The trust also plans to renovate Berlin Campus, converting it from a single-let property into a mixed-use, multi-let asset, to enhance the property’s long-term value. The total projected capital expenditure is estimated to be €165 million to €180 million.
Conclusion
Ireit Global’s stable DPU for the second half of FY2024 reflects the trust’s efforts to optimize its portfolio and manage costs. The trust’s plans to reposition Berlin Campus and refinance its debt will help to drive future growth and profitability.
Frequently Asked Questions
Q: What is Ireit Global’s DPU for the second half of FY2024?
A: 0.94 euro cents
Q: When will the DPU be paid out?
A: March 27
Q: What was the revenue growth driven by?
A: Acquisitions and rental income
Q: What is the trust’s plan for Berlin Campus?
A: To renovate it from a single-let property into a mixed-use, multi-let asset
Q: What is the total projected capital expenditure for the repositioning project?
A: €165 million to €180 million
