- 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
Previous report by RHB:
2024-01-02 IREIT Global - Bottomed Out; Upgrade To 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
