SINGAPORE (May 22): It seems that IREIT Global is facing no major disruptions to its portfolio in 1Q20, despite less than 2% of its tenants requesting rent assistance. With this RHB Group analyst Vijay Natarajan is keeping his “buy” recommendation on IREIT Global with a target price of 83 cents.

On top of that, the REIT only has a minimal 3% of leases expiring over the next two years, which should provide some income stability. There were also no rent arrears in 1Q20 and 98% of April’s rent has also been collected. With blue chip tenants accounting for more than 80% of IREIT’s portfolio, there should be minimal rent collection risks.

The REIT’s portfolio occupancy for 1Q20 also remained steady at 94.7% with near-full occupancy maintained at its German assets. A key tenant – Deutsche Telekom unit GMG Generalmietgesellschaft mbH – has exercised its break option to return two out of six floors at the Münster Campus on Feb 28, 2021. The manager has already identified and secured a 9-year lease with another tenant for the entire 3,600sqm space, or 13% of the lettable area commencing Mar 2021.

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