IREIT Global (SGX:UD1U
) has reported a distribution per unit (DPU) of €0.3 cents for 2HFY2025, down 59.6% y-o-y. On a full year basis (FY2025), DPU declined at a lower rate of 42.6% y-o-y to €1.09 cents.
Gross revenue for FY2025 decreased by 33.3% y-o-y to €50.4 million, while net property income decreased by 38.7% over the same period to €32.8 million.
The decrease was due to the vacancy at Berlin Campus with effect from Jan 1, 2025 and the absence of other income from dilapidation cost recovered from the main tenant at Berlin Campus.
Income to be distributed to Unitholders for FY2025 decreased by 42.7% y-o-y to €14.7 million mainly due to the lower property income and higher finance costs arising from an increase in loan margins for the German Portfolio and the Spanish Portfolio.
As at Dec 31, 2025, IREIT Global’s portfolio occupancy rate stood at 89.4%, a slight improvement from 88.5% achieve a year ago.
The REIT saw positive rental escalation of 4.0% in FY2025, driven mainly by consumer price index (CPI) indexation from the French Portfolio.
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In the first quarter of 2026, the Manager has secured a 10-year lease with a federal tenant at Darmstadt Campus, which is expected to raise the occupancy rate at the property from 41.3% to almost 60%.
Portfolio valuation saw a decline of 6.9% y-o-y in FY2025 to €798.1 million and net asset value (NAV) per unit in Euro terms was 12.8% y-o-y lower to €0.34 due to higher borrowing and lower valuations.
With the higher borrowings and lower portfolio valuation, iREIT Global’s aggregate leverage increased to 44.6%.
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Interest coverage ratio declined significantly to just 2.7 times, from 7.6 times a year ago. Cost of debt surged to 2.8% as at Dec 31, 2025, from just 1.9% a year earlier.
The REIT manager expects interest costs to increase due to higher loan margin and hedging cost fixed with the incumbent banks.
97.5% of the REIT’s bank borrowings have been hedged with interest rate swaps and interest rate caps.
On the repositioning of Berlin Campus, the manager states that construction works for the hospitality segments have been progressing well and the first phase of the repositioning project is targeted to complete in the second quarter of 2027.
The manager is also in ongoing discussions with two potential office tenants to secure a lease commitment for a substantial portion of the office space by the second quarter of 2026, which will entail a launch of the capital expenditure for the second phase.
As at 2.35pm, IREIT Global units was down 2.5 cents, or 8.19% lower at 28 cents on Feb 27.
