IREIT (UD1U) Q3 2024 earnings summary

Executive summary

• Portfolio focused on Western Europe, investing in office, retail, and industrial properties, with a total valuation of €855.6m as at 30 Jun 2024.

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

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

Financial highlights

• Portfolio occupancy at 89.6% as of 30 Sep 2024, marginally lower than 89.8% at 30 Jun 2024, mainly due to lower Spanish occupancy.

• Weighted average lease expiry (WALE) at 4.6 years, stable from 4.9 years at 30 Jun 2024.

• Aggregate leverage at 37.7%, improved from 37.2% at 30 Jun 2024, below sector averages.

• Weighted average interest rate at 1.9%, with 97.1% of borrowings hedged; no debt maturity until Jan 2026.

Outlook and guidance

• European real estate market showing early signs of recovery, with office letting volumes increasing year-over-year for the second straight quarter in 3Q2024.

• Focus on securing new leases and renewals to improve occupancy, especially in Spanish and German portfolios.

• 2025 distribution expected to be impacted by absence of income from Berlin Campus during repositioning.

• Strategy to maintain a healthy financial position, diversify across asset classes and countries, and broaden funding sources.