(a real estate investment trust constituted on 1 November 2013 under the laws of the Republic of Singapore)
IREIT GLOBAL
CONDENSED INTERIM FINANCIAL INFORMATION AND DISTRIBUTION ANNOUNCEMENT FOR THE HALF YEAR FROM 1 JANUARY 2022 TO 30 JUNE 2022
Introduction
IREIT Global ("IREIT") is a Singapore real estate investment trust with the investment strategy of principally investing, directly or indirectly, in a portfolio of income-producing real estate in Europe which is used primarily for office, retail and industrial (including logistics) purposes, as well as real estate-related assets.
IREIT's current portfolio comprises five office properties in Germany, strategically located in Berlin, Bonn, Darmstadt, Münster and Munich (the "German Portfolio"), five properties in Spain, located in Madrid and Barcelona (the "Spanish Portfolio") and 27 retail properties in France (the "French Portfolio").
German Portfolio
As at 30 June 2022, the German Portfolio has an aggregate net lettable area of approximately 201,100 square metres which comprises the Bonn Campus, Darnstadt Campus, Münster Campus, Concor Park and Berlin Campus.
Spanish Portfolio
As at 30 June 2022, the Spanish Portfolio has an aggregate lettable area of approximately 87,700 square metres which comprises Delta Nova IV, Delta VI, Il-lumina and Sant Cugat Green (the "Initial Spanish Portfolio"), which
IREIT acquired a 40% interest in December 2019 and the remaining 60% interest in October 2020; and Parc Cugat, which was acquired in September 2021.
The acquisition of Parc Cugat in September 2021 was financed through a combination of external bank borrowings and internal cash resources.
French Portfolio
In July 2021, IREIT completed the acquisition of a portfolio of 27 retail properties (the "France Acquisition") located in France. The French Portfolio has an aggregate lettable area of approximately 95,500 square metres.
The France Acquisition was financed through a combination of external borrowings and equity fund raising. The equity fund raising comprised a placement (the "Placement") of new Units to an investor and a pro rata non- renounceable preferential offering (the "Preferential Offer") of new units ("Units") in IREIT to existing unitholders
("Unitholders").
IREIT is managed by IREIT Global Group Pte. Ltd. (the "Manager").
Basis of preparation
The condensed interim financial information for the half year from 1 January 2022 to 30 June 2022 has been prepared in accordance with International Accounting Standards (IAS) 34 Interim Financial Reporting issued by the International Accounting Standards Board, and are drawn up in accordance with the relevant provisions of the trust deed entered into on 1 November 2013 and as amended and restated by an amending and restating deed dated 14 July 2014, supplemented by the first supplemental deed dated 6 November 2015, second supplemental deed dated 9 May 2018 and third supplemental deed dated 30 March 2020 and the relevant requirements of the Code on Collective Investment Schemes issued by the Monetary Authority of Singapore. The condensed interim financial information do not include all the information required for a complete set of financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the financial position and performance of IREIT and its subsidiaries (the "Group") since the last annual financial statements for the year ended 31 December 2021.
1
IREIT GLOBAL
CONDENSED INTERIM FINANCIAL INFORMATION AND DISTRIBUTION ANNOUNCEMENT FOR THE HALF YEAR FROM 1 JANUARY 2022 TO 30 JUNE 2022
Distribution policy
IREIT's current distribution policy is to distribute at least 90% of its annual distributable income for each financial
year, with distributions being made to the Unitholders on a semi-annual basis. The actual level of distribution will be determined at the Manager's discretion, having regard to funding requirements, other capital management
considerations and ensuring the overall stability of distributions.
SUMMARY OF CONSOLIDATED RESULTS OF IREIT GLOBAL
€'000 | 1H 2022 | 1H 2021 | Variance (%) | |
Gross revenue | 30,070 | 23,646 | 27.2 | |
Net property income | 24,435 | 19,327 | 26.4 | |
Income available for | 18,233 | 15,149 | 20.4 | |
distribution | ||||
Less: Income retained | (1,823) | (1,515) | 20.4 | |
Income to be distributed to | 16,410 | 13,634 | 20.4 | |
Unitholders | ||||
Total distribution per Unit | ||||
1H 2022 | 1H 2021 | Variance (%) | ||
Before retention | ||||
- | € cents | 1.57 | 1.59(1) | (1.3) |
After retention | ||||
- | € cents | 1.41 | 1.43(1) | (1.4) |
Footnotes:
-
On 30 June 2021, IREIT issued 11,372,868 new Units ("the Placement Units") to an investor pursuant to the Placement. Out of the distribution for 1H2021 of 1.43€ cents per Unit, an advanced distribution
(the "Advanced Distribution") of 1.42€ cents per Unit for the period from 1 January 2021 to 29 June
2021, being the day immediately prior to the date on which the Placement Units were issued, was declared on 6 August 2021. The distribution following the Advanced Distribution comprising income distributed to Unitholders from 30 June 2021 to 31 December 2021 was declared on 25 February 2022.
2
IREIT GLOBAL
CONDENSED INTERIM FINANCIAL INFORMATION AND DISTRIBUTION ANNOUNCEMENT FOR THE HALF YEAR FROM 1 JANUARY 2022 TO 30 JUNE 2022
1(a)(i) Unaudited Consolidated Statement of Profit or Loss and Other Comprehensive Income
Note | 1H | 1H | Variance | |
2022 | 2021 | |||
(€'000) | (€'000) | (%) | ||
Gross revenue | 1 | 30,070 | 23,646 | 27.2 |
Property operating expenses | (5,635) | (4,319) | 30.5 | |
Net property income | 1 | 24,435 | 19,327 | 26.4 |
Finance costs | 2 | (2,921) | (2,227) | 31.2 |
Management fees | 3 | (1,823) | (1,595) | 14.3 |
Trustee's fees | (105) | (76) | 38.2 | |
Administrative costs and other trust | 4 | (1,791) | (1,106) | 61.9 |
expenses | ||||
Net change in fair value of financial | 5 | 19,476 | 2,948 | 560.7 |
derivatives | ||||
Net change in fair value of investment | 6 | 27,518 | 27,605 | 0.3 |
properties | ||||
Profit before tax | 64,789 | 44,876 | 44.4 | |
Income tax expense | 7 | (8,752) | (5,981) | 46.3 |
Profit for the period, before | 56,037 | 38,895 | 44.1 | |
transactions with Unitholders | ||||
Distribution to Unitholders | (16,410) | (13,634) | 20.4 | |
Profit for the period, after transactions | 39,627 | 25,261 | 56.9 | |
with Unitholders | ||||
Distribution Statement | ||||
Profit for the period, before transactions | 56,037 | 38,895 | 44.1 | |
with Unitholders | ||||
Distribution adjustments | 9 | (37,804) | (23,746) | 59.2 |
Amount available for distribution to | 18,233 | 15,149 | 20.4 | |
Unitholders | ||||
Earnings per unit (€ cents) | ||||
Basic and diluted | 8 | 4.85 | 4.07 | 19.2 |
Notes to Unaudited Consolidated Statement of Profit or Loss and Other Comprehensive Income
1. Gross revenue for 1H 2022 registered an increase of €6,424,000 or 27.2% compared to that of 1H 2021, contributing to the increase in net property income of €5,108,000 or 26.4% over the same period. These were due mainly to the contribution from the acquisition of the French Portfolio and Parc Cugat in 3Q
2021. Included as part of gross revenue were the following:
1H 2022 | 1H 2021 | |
(€'000) | (€'000) | |
Rental income | 23,874 | 18,795 |
Service charge income | 4,262 | 3,319 |
Carpark income | 1,782 | 1,513 |
Other income | 152 | 19 |
Gross revenue total | 30,070 | 23,646 |
3
IREIT GLOBAL
CONDENSED INTERIM FINANCIAL INFORMATION AND DISTRIBUTION ANNOUNCEMENT FOR THE HALF YEAR FROM 1 JANUARY 2022 TO 30 JUNE 2022
1(a)(i) Unaudited Consolidated Statement of Profit or Loss and Other Comprehensive Income (continued)
Notes to Unaudited Consolidated Statement of Profit or Loss and Other Comprehensive Income (continued)
- Finance costs comprise interest expense on loans and interest rate swaps, amortisation of interest cap premiums and upfront debt transaction costs. The increase of €694,000 or 31.2% compared to that of 1H 2021 was mainly due to the finance costs incurred for the term loan facility entered into for the acquisition of the French Portfolio and Parc Cugat in 3Q2021.
- Management fees are determined based on 10.0% per annum of the annual distributable income of IREIT. The increase in management fees was in line with the increase in distributable income for 1H 2022 compared to that of 1H 2021. The management fees for 1H 2022 are payable 100% in cash, while the management fees for 1H 2021 were paid 50% in cash and 50% in Units.
-
Administrative costs and other trust expenses for 1H 2022 were 61.9% higher compared to that of 1H 2021. Included in other trust expenses was a foreign exchange gain of €8,000 (1H 2021: foreign exchange loss of €39,000) arising mainly from the translation of Singapore dollar denominated cash
balances as at 30 June 2022. Excluding this foreign exchange gain, administrative costs and other trust expenses were €1,799,000 (1H 2021: €1,067,000). The increase of €732,000 in administrative costs and other trust expenses were mainly due to the professional fees and other expenses incurred in relation to the establishment of the Multicurrency Debt Issuance Programme as announced on 17 May 2022 and administrative expenses from the French Portfolio and Parc Cugat, following the completion of the acquisition of these assets in 3Q2021. - The net change in fair value of financial derivatives for 1H2022 arose from the revaluation of interest rate swaps and interest rate caps entered into to hedge the interest rate risk on borrowings. For 1H2021, the
net change in fair value of financial derivatives also include the forward foreign currency exchange contracts entered into to hedge the currency risk for distribution to Unitholders. IREIT's distribution currency has been changed from S$ to € starting with the distribution for the period from 30 June 2021
to 31 December 2021 onwards. Accordingly, there is no longer a need to enter into forward foreign currency exchange contracts for the hedging of IREIT's distributions to Unitholders. - This relates to the difference between the carrying value and the fair value of the investment properties as at the end of each respective reporting period.
- Income tax expense comprises current and deferred tax expenses. The increase for 1H 2022 was mainly due to the higher deferred tax liability provided on the temporary differences arising from the net change in fair value of financial derivatives as compared to the corresponding reporting period last year.
- Please refer to Section 6 for details.
- Distribution adjustments
1H 2022 | 1H 2021 | |
(€'000) | (€'000) | |
Distribution adjustments | ||
- Difference between accounting and actual finance costs paid | 409 | 222 |
- Management fees payable in Units | - | 797 |
- Foreign exchange (gain) / loss | (8) | 39 |
- Effects of recognising rental income on a straight line basis | 639 | 307 |
over the lease term | ||
- Net change in fair value of financial derivatives | (19,476) | (2,948) |
- Net change in fair value of investment properties | (27,518) | (27,605) |
- Deferred tax expense | 8,150 | 5,442 |
Net distribution adjustments | (37,804) | (23,746) |
4
IREIT GLOBAL
CONDENSED INTERIM FINANCIAL INFORMATION AND DISTRIBUTION ANNOUNCEMENT FOR THE HALF YEAR FROM 1 JANUARY 2022 TO 30 JUNE 2022
1(b)(i) Unaudited Statements of Financial Position | |||||
Group | Trust | ||||
(€'000) | (€'000) | ||||
Note | 30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 | 31 Dec 2021 | |
Current assets | |||||
Cash and cash equivalents | 1 | 51,929 | 51,669 | 4,453 | 2,981 |
Trade and other receivables | 2 | 5,689 | 3,990 | 12,076 | 9,720 |
Financial derivatives | 3 | 786 | 8 | - | - |
58,404 | 55,667 | 16,529 | 12,701 | ||
Non-current assets | |||||
Investment properties | 4 | 1,002,770 | 974,870 | - | - |
Investment in subsidiaries | 5 | - | - | 392,476 | 400,948 |
Other receivables | 1,643 | 1,539 | - | - | |
Financial derivatives | 3 | 16,500 | 2,319 | - | - |
Loans to subsidiary | 6 | - | - | 37,800 | 37,800 |
Deferred tax assets | 456 | 1,104 | - | - | |
1,021,369 | 979,832 | 430,276 | 438,748 | ||
Total assets | 1,079,773 | 1,035,499 | 446,805 | 451,449 | |
Current liabilities | |||||
Trade and other payables | 9,857 | 7,505 | 1,690 | 1,168 | |
Distribution payable | 16,579 | 17,600 | 16,579 | 17,600 | |
Financial derivatives | 3 | - | 1,981 | - | - |
Income tax payable | 8 | 1,197 | 769 | 193 | - |
27,633 | 27,855 | 18,462 | 18,768 | ||
Non-current liabilities | |||||
Borrowings | 7 | 329,314 | 328,922 | - | - |
Other payables | 1,786 | 2,315 | 77,021 | 77,021 | |
Financial derivatives | 3 | - | 2,496 | - | - |
Deferred tax liabilities | 9 | 61,967 | 54,465 | - | - |
393,067 | 388,198 | 77,021 | 77,021 | ||
Total liabilities | 420,700 | 416,053 | 95,483 | 95,789 | |
Net assets attributable to | |||||
Unitholders | 659,073 | 619,446 | 351,322 | 355,660 | |
5
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
IREIT Global published this content on 12 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 August 2022 04:58:17 UTC.