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.

CapitaLand said to be acquiring Star Harbour International Center project in Shanghai for $2.5 bil

SINGAPORE (Oct 17): CapitaLand is said to be investing about RMB 12.79 billion ($2.54 billion) to acquire the Star Harbour International Center project in Hongkou, Shanghai, according to real estate online portal Mingtiandi. The group is said to be acquiring its most expensive real estate project yet in China from Shanghai Port Group, after the state-run developer announced on last Friday that it is planning to sell the property. CapitaLand has yet to make a statement regarding the acquisition. When The Edge Singapore reached out to CapitaLand for comments, the group said the tender h....
Read More >>

Few have made it where Tung Lok now treads: SAC

SINGAPORE (Oct 17): Since its founding in 1984, Tung Lok Restaurants (2000) has made a name for itself in the local F&B scene. From serving gourmet Chinese cuisine in its flagship Tung Lok Restaurant, it is now engaging the tastebuds of a younger generation and licensing its brands overseas. As at end March, Tung Lok operates as 43 F&B outlets with 24 directly owned, eight held by associates and 11 others under management. These are located in Indonesia, Japan, China, Vietnam and, of course, Singapore. The group’s operations can be segmented into three categories: restaurateur,....
Read More >>

Analysts put SPH on 'hold', but is the end of its earnings decline in sight?

SINGAPORE (Oct 17): Analysts across three brokerages – UOB Kay Hian, OCBC Investment Research, and CGS-CIMB Research – have “hold” recommendations on Singapore Press Holdings (SPH), as the group performed below expectations for FY18. SPH saw its full-year earnings fall 19.7% to $281.1 million for the FY18 ended August, from $350.1 million a year ago. However, this was mainly attributable to the absence of a one-off gain of $149.7 million a year ago from the divestment of a joint venture. FY18 operating revenue fell by 4.8% to $982.6 million, from $1.03 billion a year ago. See:....
Read More >>
Stars align for US banks to shine

(Oct 15): A decade after the global financial crisis, the landscape of the US financial services ind