IREIT Global's 1H FY24 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue and NPI have improved YoY mainly due to contributions from the B&M Portfolio in France, acquired in September 2023, and the recognition of dilapidation costs paid by the main tenant at the Berlin Campus. However, income available for distribution and DPU only improved slightly YoY mainly due to the retention of the dilapidation costs received.

Divestment

IREIT divested Il∙lumina in January 2024.

Related Parties Shareholding

The REIT sponsor holds a relatively high proportion of shares, while the REIT manager and directors of the REIT manager hold a relatively low proportion.

Lease Profile

While the weighted average land lease expiry and WALE are long, lease expiry is concentrated this year.

Debt Profile

The cost of debt is low, and the adjusted interest coverage ratio and fixed-rate debt proportion are high. However, WADM is short, debt maturity is concentrated in 2026, and the unsecured debt proportion stands at 0%.

Diversification Profile

The portfolio shows geographical diversification but is concentrated on property and tenant contributions.

Key Financial Metrics

Overall, key financial metrics are favorable.

DPU Breakdown

• TTM Distributable Income Breakdown:
• 65.7% from Operation
• 34.3% being Retained

Trends (Up to 10 Years)

• Uptrend: NAV per Unit, Operating Distributable Income over Manager's Fees, Operating Distribution Proportion
• Downtrend: DPU from Operation, Committed Occupancy, Adjusted Interest Coverage Ratio, Property Yield, Operating Distributable Income on Capital, Operating Distributable Income Margin

Price Range & Relative Valuation Metrics

• Dividend Yield - Above +2SD for 1y, 3y, 5y & 10y
• P/NAV - Below -1SD for 1y & 5y; Below -2SD for 3y & 10y

Author's Opinion

Compared to the previous half-year, the performance remains similar. For debt, there is no refinancing requirement in 2024 and 2025.

For more information, check out:

SREITs Dashboard - Detailed information on individual Singapore REIT

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REIT Review - List of previous REIT review posts

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.