Europe-focused IREIT Global UD1U ’s
The growth in IREIT’s portfolio came as a result of the acquisition of 17 retail properties in France, occupied by European discount retailer B&M Group, with a weighted average lease expiry (WALE) of 6.3 years. The acquisition was completed on Sept 5.
The REIT’s portfolio now comprises 446,038 sqm across five German properties worth EUR638.6 million, 44 properties in France worth EUR199.8 million and five Spanish properties valued at EUR161.1 million.
During the 3QFY2023 ended September, IREIT saw a new federal tenant move into 7,600 sqm leased space at its Darmstadt Campus in Germany, with follow-up works to be completed in 4QFY2023. There are also ongoing discussions with several potential tenants for new leases totalling an estimated 7,000 sqm at the Darmstadt Campus.
At its Berlin Campus, refurbishments have been planned well ahead of the potential departure of the main tenant at the end of 2024. IREIT has also conducted a feasibility study, with leasing to start by end-4QFY2023. The planned refurbishment would provide long-term income and value upside but would have near-term impact on earnings during refurbishment, says the REIT.
In Spain, IREIT signed a new lease at Delta Nova IV and two new leases at Sant Cugat Green, where data centre operations have begun after the completion of works in 3Q2023. A new occupier also moved into Parc Cugat Green.
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Finally, the REIT completed the BREEAM certification process for all its Decathlon retail properties in France.
IREIT’s overall occupancy rate improved to 90.4% as at Sept 30, up from 88.7% in the prior quarter, with a WALE of 4.9 years.
Following the acquisition in France, IREIT’s aggregate leverage increased to 34.4%, compared to 33.1% as at June 30.
Units in IREIT Global closed 0.5 cents lower, or 1.43% up, at 34.5 cents on Nov 8.
