IREIT Global's 2H FY24 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue improved year-over-year, primarily due to contributions from the B&M Portfolio in France, acquired in September 2023, and higher income from the Decathlon Portfolio and Berlin Campus. However, net property income (NPI) declined due to higher property operating expenses. Despite this, income to be distributed and DPU remained stable after straight-line rent adjustments.

Rental Escalation

IREIT recorded a 5.8% rental escalation in FY2024.

Related Parties Shareholding

• REIT Sponsor's Shareholding: Favorable
• REIT Manager's Shareholding: Less Favorable
• Directors of REIT Manager's Shareholding: Less Favorable

Lease Profile

• Committed Occupancy: Less Favorable
• Highest Annual Lease Expiry in 4 Years: Favorable
• WALE: Favorable
• Weighted Average Land Lease Expiry: Favorable

Debt Profile

• Adjusted Interest Coverage Ratio: Favorable
• Cost of Debt: Favorable
• Gearing Ratio: Moderate
• Fixed Rate Debt Proportion: Favorable
• Unsecured Debt Proportion: Less Favorable
• Highest Annual Debt Maturity in 4 Years: Less Favorable
• WADM: Less Favorable

Diversification Profile

• Top Geographical Weightage: Favorable
• Top Property Weightage: Less Favorable
• Top 5 Properties' Weightage: Moderate
• Top Tenant Weightage: Moderate
• Top 10 Tenants' Weightage: Less Favorable

Key Financial Metrics

• Property Yield: Moderate
• Operating Distributable Income over Manager's Fees: Favorable
• Operating Distributable Income on Capital: Moderate
• Operating Distributable Income Margin: Moderate
• Operating Distribution Proportion: Favorable

DPU Breakdown

• TTM Distribution Breakdown:
• 90% from Operation
• 10% being Retained 

Trends (Up to 10 Years)

• Uptrend: NAV per Unit, Operating Distributable Income over Manager's Fees, Operating Distribution Proportion
• Slight Uptrend: None
• Flat: None
• Slight Downtrend: None
• Downtrend: DPU from Operations, Committed Occupancy, Adjusted Interest Coverage Ratio, Top 5 Properties' Weightage, Top 10 Tenants' Weightage, 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 -2SD for 1y, 3y, 5y & 10y

Author's Opinion

Compared to the previous half-year, despite an increase in gross revenue, both NPI and DPU declined slightly due to higher operating expenses. On the debt front, there are no refinancing requirements in 2025.

For more information, check out:

S-REITs Dashboard - Detailed information on individual Singapore REIT

S-REITs Data - Overview and detail of Singapore REITs

S-REIT Comparison - Comparison among Singapore REITs

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.