IREIT (UD1U) Q1 2025 earnings summary

Executive summary

• Pure-play Western Europe-focused REIT with a €857.3m portfolio as of 31 Dec 2024, spanning office, retail, and hospitality assets in Germany, France, and Spain.

• Portfolio comprises 53 properties: 5 in Germany (offices), 44 in France (retail), and 4 in Spain (offices), with a total lettable area of 425,116 sqm.

• Recognized with multiple awards for office REIT performance and investor relations in 2024.

Financial highlights

• Portfolio committed occupancy at 88.7% as of 31 Mar 2025, up from 88.5% at 31 Dec 2024, driven by new Spanish leases.

• Weighted average lease expiry (WALE) at 5.7 years, supported by new leases and no expiries during the quarter.

• Aggregate leverage at 37.7% as of 31 Mar 2025, below sector averages; weighted average interest rate stable at 1.9%.

• Interest coverage ratio at 6.7x, with 98.5% of borrowings hedged.

• Voluntary partial loan repayment of €5.0m for the Spanish portfolio completed.

Outlook and guidance

• European real estate market shows improvement, but recovery may be tempered by global volatility and geopolitical risks.

• Germany's €500bn investment program expected to support economic conditions.

• Manager to focus on increasing occupancy, especially at Darmstadt Campus and Spanish assets, and may pursue asset enhancements.

• Construction for Berlin Campus repositioning to start in 2Q2025, targeting completion in 4Q2027 and within €165m–€180m budget.

• Absence of income from Berlin Campus during repositioning will significantly impact distributions.