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.

Right timing: Awaiting rebound amid accelerated decline

SINGAPORE (June 22): Here are two charts for your technical analysis this week: STI daiiy (3,356) The Straits TImes Index fell almost 70 points in the past five sessions after falling 80 points a week earlier. Down momentum is strong, but short-term indicators are becoming increasingly oversold. Short-term stochastics is at the bottom of its range, and 21-day RSI is at 30, a low level. ADX is at 32, a high level, suggesting that prices are likely to hit an excessively oversold level soon, at around mid-week next week. Volume was elevated on June 22, but once this abates, the index sh....
Read More >>

Noble up 30% on securing trade finance facilities, debt restructuring plan

SINGAPORE (June 22): Debt-laden commodities trader Noble Group said on Friday it had secured US$100 million ($136 million) in trade finance facilities from a group of investors, winning fresh support for a US$3.4 billion debt restructuring plan that is key to its survival. In a regulatory statement, Noble, once Asia's largest commodity trader, said a consortium of investors, which includes perpetual security holders Value Partners and Pinpoint Asset Management, will provide the three-year financing. The consortium, which owns about 5% of Noble stock, has agreed to back the restructuring. ....
Read More >>

Ho Bee to get a recurrent income boost from Ropemaker acquisition: Maybank

SINGAPORE (June 22): Maybank KimEng is raising Ho Bee Land’s FY18-20 EPS by 7-22% after incorporating the developer’s recent acquisition of Ropemaker Place in the UK. See: Ho Bee Land acquires Ropemaker Place in London for $1.16 bil Maybank said the deal puts Ho Bee’s conservative balance sheet to work and should enhance its recurring EBIT by 39%. And at a 7% discount to the vendor’s asking price and with yields at almost 50bps higher than prime office yields in the same locality, the price paid appears reasonable, added Maybank. After snapping up Ropemaker Place, a Grade A of....
Read More >>
High-value jobs, skilled talent in high supply at Iskandar Malaysia

SINGAPORE (June 18): Most companies setting up a division overseas struggle to find the right talent