SINGAPORE (Nov 12): The manager of IREIT Global has announced a 3Q18 distribution per unit (DPU) of 1.42 cents, unchanged from a year ago in SGD terms after taking into account forward foreign currency exchange contracts entered into to hedge against currency risks for distribution to unitholders.  

In terms of the euro currency alone, DPU for 3Q was 0.88 euro cent, down 4.2% from 0.92 euro cent in the same period a year ago.

Gross revenue for the quarter fell 1.2% to 8.6 million euros from 8.7 million euros in 3Q17, mainly due to the finalisation of service charge reconciliation in the prior year.

NPI was 4.2% lower y-o-y at 7.5 million euros compared to 7.85 million euros previously due to higher repair and maintenance expenses for the upkeep of the REIT’s properties.

Including the distribution for 1H, DPU for 9M18 amounted to 4.37 cents, which was 1.4% higher y-o-y from the trust’s 9M17 DPU of 4.31 cents a year ago.

Operationally, IREIT’s manager says it recently received a lease extension commitment from a single tenant at Münster South, a year ahead of its lease expiry in Sept 2019  and bringing the lease expiry from the said date to 2024.

Another one of its key tenants has extended its lease by another three years from Dec 2019 to 2022 at Concorde Park, adds the manager.

These developments means there will be no more lease expiries for IREIT Global in 2019, which therefore enhances the certainty of the REIT’s recurring income stream, says Aymeric Thibord, CEO of the manager.

“We will remain focused on a growth strategy based on the four pillars of seeking diversification, taking a long-term approach, achieving scale and having a local presence in order to enhance the long-term income for unitholders,” says Thibord.

Units in IREIT Global closed 0.7% lower at 74 cents on Monday.