SINGAPORE (May 11): The manager of IREIT Global posts distribution per unit (DPU) of 1.44 cents for the first quarter ended March, some 8.9% lower than DPU of 1.58 cents a year ago.

This was mainly due to the retention of part of the distributable income for the period, in accordance with IREIT's distribution policy.

Income available for distribution grew 1.4% to €6.5 million ($10.0 million), from €6.4 million a year ago. However, after accounting for €651,000 of income retained, income distributable to unitholders was 8.7% lower at €5.9 million.

Gross revenue held steady at €8.8 million, 0.4% lower than a year ago.

This was due to a 10% CPI-linked increase in rental income for Bonn Campus from Dec 2016, which was offset by a decrease in service charges income.

Net property income rose 3.5% to €7.9 million, from €7.6 million a year ago, due mainly to the higher rental income contribution from Bonn Campus.

Cash and cash equivalents stood at €14.1 million as at March 31, 2017.

“The underlying strength of Europe’s economy and real estate market bodes well for our existing portfolio,” says Aymeric Thibord, Chief Executive Officer of the manager.

“We are presently looking into a number of opportunities and plan to diversify by asset class, country (within Europe), tenant and lease expiry. A broader and larger portfolio will enhance IREIT’s long term recurring income and earnings visibility,” Thibord says.

Units of IREIT Global closed 1 cent higher at 76 cents on Thursday.