IREIT Global - RHB Invest 2024-01-02: Bottomed Out; Upgrade To BUY

IREIT Global - Bottomed Out; Upgrade To BUY

IREIT Global (SGX:UD1U) | SGinvestors.ioIREIT Global (SGX:UD1U)
  • IREIT Global (SGX:UD1U)’s latest move to divest its Spanish office asset at a premium to valuation is a positive step. The divestment will improve portfolio weighted average lease to expiry (WALE) and further strengthen its balance sheet position with a low gearing (~33%), providing debt headroom for opportunistic acquisitions ahead.
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Divestment of Il-Lumina in Barcelona

  • IREIT Global announced the divestment of Il-Lumina in Barcelona, a freehold office asset, for EUR24.5m, at a 5.2% premium to Jun 2023’s valuation (a 4% discount to 2019’s purchase price). The asset accounted for ~3% and 4% of IREIT Global’s portfolio value and net property income (FY22).
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  • Key reasons for divesting the asset include its short WALE profile of 2.8 years vs the portfolio’s 4.9 years and secondary office location that could likely pose leasing risks upon expiry.
  • Completion of divestment is expected by January.

Recent slide in eurozone bond yields provides tailwinds.

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Vijay Natarajan RHB Securities Research | 2024-01-02

Read also RHB's most recent report:
2024-02-26 IREIT Global - A Better 2024 On The Cards; BUY.

Price targets by other brokers at IREIT Global Target Prices.

Listing of research reports at IREIT Global Analyst Reports.

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


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