IREIT (UD1U) Q4 2025 earnings summary

Executive summary

• Portfolio focused on Western Europe, primarily office (75%) and retail (25%) assets across Germany, France, and Spain, with a total valuation of €798.1m as of 31 Dec 2025.

• FY2025 results impacted by Berlin Campus vacancy and higher finance costs, leading to a 42.6% YoY drop in distribution per unit (DPU) to €1.09 cents.

• Active asset management and refinancing efforts underway, including the repositioning of Berlin Campus and successful extension of German Portfolio debt maturity to Jul 2029.

Financial highlights

• FY2025 gross revenue fell 33.3% YoY to €50.4m; net property income dropped 38.7% YoY to €32.8m.

• Income to be distributed to unitholders declined 42.7% YoY to €14.7m.

• NAV per unit decreased 12.8% YoY to €0.34; in SGD terms, NAV per unit was S$0.51, trading at a 40.5% discount to market price.

• Aggregate leverage rose to 44.6% due to new green notes and lower portfolio valuation; interest coverage ratio at 2.7x.

Outlook and guidance

• Portfolio occupancy rate improved to 89.4% as of 31 Dec 2025, with further gains expected from new leases, especially at Darmstadt Campus.

• Finance costs projected to rise with further refinancing and Berlin Campus repositioning; management is exploring strategic and funding options to mitigate impact.

• Construction for Berlin Campus hospitality segment progressing, with first phase completion targeted for 2Q2027.