IREIT (UD1U) Q2 2025 earnings summary

Executive summary

• Portfolio valuation reached €859.8m as of 30 Jun 2025, with 53 properties across Germany, France, and Spain, focusing on office, retail, and hospitality assets.

• Gross revenue for 1H2025 declined 27.5% year-over-year to €26.6m, mainly due to Berlin Campus vacancy and absence of one-time income from dilapidation cost in 1H2024.

• Net property income fell 33.3% to €18.0m compared to 1H2024.

• Distribution per unit for 1H2025 was €0.71 cents, down 26.0% year-over-year, mainly due to Berlin Campus vacancy.

• Occupancy rate stood at 89.5% (excluding Berlin Campus), with a weighted average lease expiry of 5.8 years, supported by new leases and extensions.

Financial highlights

• Net income before tax decreased 32.4% year-over-year to €13.3m.

• Income to be distributed to unitholders decreased 26.0% year-over-year to €9.5m.

• NAV and NTA per unit remained at €0.39 as of 30 Jun 2025; in SGD terms, NAV per unit increased 5.5% to S$0.58 due to currency movements.

• Aggregate leverage rose to 41.1% from 37.7% at 31 Mar 2025, following the S$85m green notes issuance.

• Cash and cash equivalents increased to €110.5m, mainly from S$85m green notes issued in May 2025.

Outlook and guidance

• Manager expects to finalize refinancing of German and Spanish portfolios by 3Q2025, extending earliest debt maturity to July 2027.

• Construction for Berlin Campus repositioning began in 2Q2025, with lease commitments targeted by 1Q2026.

• Financing costs are expected to rise as new borrowings will reflect higher market rates.

• European real estate market shows improved investment and letting activity, but recovery may be tempered by global volatility and geopolitical tensions.