CFA Institute Singapore
SINGAPORE (Feb 14): The manager of IREIT Global has declared a DPU of 1.46 cents for 4Q17, 7.6% lower than the distribution of 1.58 cents in 4Q16.
This brings FY17 DPU to 5.77 cents, 8.8% lower compared to the DPU of 6.33 cents declared in FY16.
IREIT Global Group says net property income and distributable income grew by 0.3% and 3.1% year-on-year, respectively, to EUR7.9 million ($12.9 million) and EUR6.6 million in 4Q17.
Contributing to this set of steady results was continued firm rental income from its portfolio of five quality freehold assets in Germany, as well as the 10% rental uplift at Bonn Campus after the CPI-linked hurdle rate was crossed in December 2016.
For FY17, net property income came in at EUR31.5 million, up 2.2%, while distributable income rose by 1.7% to EUR26.0 million.
As at Dec 31 2017, IREIT's portfolio valuation stood at EUR463.1 million versus EUR453.0 million a year ago.
Together with the partial loan repayments of EUR2.55 million in 2H17, IREIT’s aggregate leverage improved 1.3 percentage points year-on-year to 40.3% as at Dec 31 2017.
Aymeric Thibord, the CEO of IREIT Global Group, says, “In the year ahead, its portfolio performance should continue to be supported by its blue-chip tenant base and long leases, with notably no lease expiry in 2018.”
Looking ahead, IREIT Global will continue to pursue its growth strategy based on the four pillars of seeking diversification, adopting a long-term approach, achieving scale, and leveraging on Tikehau Capital’s established local presence.
IREIT Global Group, a subsidiary of pan-European asset management and investment firm Tikehau Capital.
Units in IREIT Global closed at 78 cents on Wednesday.