On June 21m 2024, Deutsche Rentenversicherung Bund (DRB), Europe’s largest pension fund and the sole tenant of the Berlin Campus, formally notified IREIT that it is vacating the space upon lease expiry on December 2024. As IREIT's largest tenant, DRB accounted for around 22% of the REIT's rental income for its 1HFY2024.
Vijay Natarajan of RHB Bank Singapore has kept his "buy" call on IREIT Global (SGX:UD1U
) as he believes that the REIT, trading at a 50% discount to book value partly because of the impending loss of its largest tenant, has likely bottomed out.
However, the REIT's near-term distribution will be hurt by the upcoming redevelopment of its largest asset, the Berlin Campus, which will take place in the coming two years or so. As such, Natarajan has cut his target price from 40 cents to 34 cents, which is still an upside of 19% and a FY2025 yield of 7%.
