IREIT Global - DBS Research 2022-03-01: Further Tenant Diversity Expected

IREIT Global - Further Tenant Diversity Expected

  • IREIT Global (SGX:UD1U)'s FY21 DPU of 2.93 EUR cents is a 11% increase y-o-y, mainly due to a recently enlarged portfolio.
  • IREIT Global’s acquisition of the Spanish portfolio and the recent acquisition of 27 retail properties in France reduces its key tenant, geographical, and sector concentration risks. It currently has an enlarged portfolio of office and retail properties valued at ~EUR975 spanning across the three European markets of Germany, Spain, and France.
  • Organic growth backed by stable portfolio occupancy and higher rental rates that are pegged to CPI.
  • Upcoming lease expiries have been renewed and replaced; bulk of remaining expiries only at the end of FY22.
  • On a valuation basis, IREIT Global is expected to generate a very attractive forward yield in excess of 7.3%. We have assumed a conservative exchange rate of EUR1:S$$1.55 in deriving our DPU projections, and an appreciation in the EUR will provide an upside to our estimates. We will be maintaining our BUY recommendation on IREIT Global with a revised target price of S$0.70, implying a potential total return of ~17%.

Above is the excerpt from report by DBS Group Research.
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Dale LAI DBS Group Research | Derek TAN DBS Research | 2022-03-01
SGX Stock Analyst Report BUY MAINTAIN BUY 0.70 DOWN 0.760

Previous report by DBS Research:
2021-05-06 IREIT Global - Gearing Up; Re-initiate Coverage With BUY

Check out the most recent target prices at IREIT Global Target Prices. Listing of analyst research reports at IREIT Global Analyst Report.

Relevant links:
IREIT Global Share Price History,
IREIT Global Announcements,
IREIT Global Dividends & Corp Actions,
IREIT Global News Articles


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