SINGAPORE (Mar 3): RHB Group Research is initiating coverage on IREIT Global, a Europe-focused REIT, with a “buy” and a target price of 92 cents, as the research house likes it for its exposure to the resilient German economy and good quality stable tenant profile.

IREIT’s office portfolio comprises nine office assets – five in Germany and four in Spain – worth about €650 million ($1.0 billion).

Despite economic uncertainties, IREIT enjoys income stability as it derives its strength from two key tenants – Deutsche Telekom and Europe’s largest pension fund, Deutsche Rentenversicherung (DRV) – which RHB sees as “sticky” in nature and accounts for some 77% of IREIT’s rental income.

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