IREIT Global - RHB Invest 2024-02-26: A Better 2024 On The Cards; BUY

IREIT Global - A Better 2024 On The Cards; BUY

Published:
IREIT Global (SGX:UD1U) | SGinvestors.ioIREIT Global (SGX:UD1U)
  • IREIT Global (SGX:UD1U)’s 2H/FY23 DPU slightly missed estimates. While FY23 was a transitional year, with occupancy movements and slow backfilling progress, a better FY24 is expected on the back of full income contribution from newly signed leases and acquisition contributions.
  • - Read this at SGinvestors.io -
  • While uncertainties remain on the Berlin campus lease extension beyond FY24, the severe under-rented nature of the asset offers good repositioning potential.

More clarity on Berlin campus by end 1H24.

  • Berlin campus is IREIT Global’s largest asset with key tenant Deutsche Rentenversicherung Bund (DRV) accounting for ~21% of FY23 income. As announced earlier, DRV signed a short-term (6- month) lease extension from its initial Jun 2024 expiry until the end of the year, with a 45% increase in rent for the term. DRV also paid a EUR15.5m dilapidation fee, equivalent to 16 months’ rental income.
  • - Read this at SGinvestors.io -
  • Due to the asset’s excellent location and severely under-rented nature (30-40% lower post adjusted rent), management sees strong medium-term potential. However, repositioning the asset involves significant capex (EUR50-150m) and a short-term drop in distributable income.

Portfolio valuation (same-store basis) fell 11.1% h-o-h

  • Read more at SGinvestors.io.





Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2024-02-26



Read also RHB's most recent report:
2024-07-11 IREIT Global - Near-term Challenges, But Largely Priced In; 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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