IREIT Global has reported a distribution per unit of 0.71 € cents for its 1HFY2025, down 26% y-o-y. The drop was due to the full vacancy of one of its key properties, Berlin Campus, which is being converted from office to hospitality use.
Gross revenue in the same half year ended June was down 27.5% to €26.6 million; net property income down 33.3% to €18 million and income to be distributed to unitholders down 26% to €9.5 million.
Besides the vacant Berlin Campus, IREIT in the same period did not enjoy income from the dilapidation cost paid by the main tenant at the property in 1HFY2024.
Peter Viens, CEO of the manager says the REIT has "continued to display resilience".
In the second quarter of 2025, the REIT signed two new leases covering a total of approximately 5,200 sqm and one lease extension for approximately 2,170 sqm were concluded at its portfolio in Spain.
This has raised its overall occupancy rate from 77% to 80%.
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IREIT Global says that works to convert the Berlin Campus has started in 2QFY2025, according to schedule.
Funding will be drawn from its inaugural $85 million green notes issued in May.
The REIT has already secured two long-term leases with hospitality operators, Premier Inn and Stayery, for approximately 24% of the lettable area.
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It is in talks to sign two potential office tenants, with a target to secure a lease commitment for a substantial portion of the office space at Berlin Campus by the first quarter of 2026.
IREIT expects "continued improvement" in investment and letting activities in the real estate market of Europe.
"The loosening of Europe’s fiscal policy, the European Union’s recent ReArm Europe Plan and Germany’s €500 billion investment programme on infrastructure and defence are expected to lend further support to the European economy, even though the ongoing financial volatility, geopolitical tensions and tampered investor interest may slow down the recovery in 2025," says IREIT.
The REIT is in "advanced" talks to refinance its assets in Germany and Spain and expects to finalise agreements in this current 3QFY2025, which will push the next earliest debt maturity to July 2027.
IREIT Global units closed at 30 cents on Aug 7.
