IREIT (UD1U) Q4 2024 earnings summary

Executive summary

• Pure-play Western Europe-focused REIT with a €857.3m portfolio across Germany, France, and Spain, mainly in office and retail sectors.

• FY 2024 gross revenue rose 16.3% YoY to €75.6m, driven by B&M Portfolio acquisition and higher rents, offset by Il·lumina divestment.

• Net property income increased 7.2% YoY to €53.5m, despite higher operating expenses from Berlin Campus repositioning.

• DPU for FY 2024 was €1.90 cents, up 1.6% YoY, with 10% income retention for working capital and capex.

• Major repositioning of Berlin Campus into a multi-let, mixed-use asset after main tenant's exit; capex estimated at €165–€180m.

Financial highlights

• FY 2024 gross revenue: €75.6m (+16.3% YoY); net property income: €53.5m (+7.2% YoY).

• Total return attributable to unitholders: €8.6m in FY 2024, reversing a €105.3m loss in FY 2023.

• DPU: €1.90 cents (+1.6% YoY); income to be distributed to unitholders grew 1.5% YoY to €25.6m.

• NAV per unit at €0.39 (S$0.55), down 4.9% (8.3% in S$ terms) from prior year, mainly due to property revaluation and currency effects.

• Cash and cash equivalents: €72.2m (31 Dec 2024), up €26.1m from prior year.

Outlook and guidance

• European real estate investment and leasing volumes improved in 2024 but remain below the 10-year average due to macroeconomic and geopolitical headwinds.

• Manager prioritizes increasing portfolio occupancy and yield, with c.49,450 sqm of new leases and renewals secured in 2024.

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

• Ongoing negotiations to refinance German and Spanish portfolio borrowings by 1H 2025; no maturities until July 2027 post-refinancing.