IREIT Global 2Q DPU rises 45.5% to 1.60 cents

IREIT Global 2Q DPU rises 45.5% to 1.60 cents

By: 
Jude Chan
10/08/16, 08:25 pm

SINGAPORE (Aug 10): IREIT Global announces distribution per unit (DPU) of 1.60 cents for 2Q16, an increase of 45.5% compared to the same period last year.

This was mainly due to contribution form IREIT’s Berlin Campus, which was acquired in August 2015.

The first Singapore-listed real estate investment trust focused on European office properties, IREIT Global saw distributable income soar 47.0% to 6.4 million euros ($9.6 million) in 2Q16, from 4.4 million euros last year.

For first half 2016, distributable income rose 46.9% to 12.8 million euros, and DPU grew 43.9% to 3.18 cents.

Based on IREIT’s closing unit price of 73 cents on 30 June 2016, 1H16 DPU translates to an attractive annualised yield of approximately 8.7%, IREIT Global says in an SGX filing on Wednesday.

Gross revenue increased 57.4% to 8.5 million euros, and net property income grew 57.0% to 7.6 million euros.

“We are pleased to turn in yet another stable set of results this quarter,” says IREIT CEO Itzhak Sella. “All our properties continue to deliver steady performance for the first half of 2016.”

As at the end of 1H16, IREIT’s total portfolio occupancy rate remained at almost 100% and the weighted average lease expiry stood at 6.4 years.

While IREIT says the impact of Brexit is as yet uncertain, it expects the performance of its property portfolio to “remain stable, underpinned by its freehold quality assets, long stable leases and diversified blue chip tenant base”.

“We remain optimistic that the underlying strength of the German economy as well as the quality of its properties will enable IREIT to continue delivering stable income to its Unitholders for FY2016,” Sella says.

Units of IREIT Global closed 0.66% lower at 75.5 cents on Wednesday.

How should investors pick their funds?

SINGAPORE (Aug 13): Financial planners say retail investors should do more due diligence before buying into unit trusts, and not buy into funds just because they are associated with a famous brand name and have more market exposure. “Fund performance has little correlation with brand name and market exposure. The key is the fund manager, investment team and processes. Some smaller fund houses may have these capabilities, but do not have the budget to conduct branding and marketing activities,” says Yap Ming Hui, founder and managing director of Whitman Independent Advisors. Bryan Zhe....
Read More >>

Is bigger better?

SINGAPORE (Aug 13): There is a common perception among retail investors that the larger asset management companies tend to outperform their smaller counterparts in the market. The general opinion is that only fund houses that have the capital to market their products and a strong agency force to distribute their products would have a good track record when it comes to delivering returns to their customers. See also: How should investors pick their funds? However, data provided by investment research and management firm Morningstar shows that this may not always be the case. Personal Weal....
Read More >>

Thai Beverage reports 61% fall in 3Q earnings to $248 mil

SINGAPORE (Aug 14) Thai Beverage PLC reported 3Q earnings fell 60.7% to THB 6 billion ($248 million) from a year ago due to lower profit from spirits and beer, higher losses from non-alcoholic beverages and lower income contribution from Fraser and Neave and Frasers Property (F&N/FPL). For the 3Q ended June, revenue rose 34.1% to THB 60.8 billion due to higher sales of beer and food to be offset by lower sales in spirits and non-alcoholic beverages. Net profit from F&N/FPL was 80.9% lower at THB 1.9 billion due to the absence of recognition of fair valuation gains on financial as....
Read More >>
Hall of change

SINGAPORE (Aug 13): On the evening of April 26, Prof Ilian Mihov took the stage to speak about