IREIT GLOBAL IREIT Global Group Pte. Ltd.
(as Manager of IREIT Global)
1 Wallich Street #15-03 Guoco Tower Singapore 078881 Main (65) 6718 0590 www.ireitglobal.com
Media Release
IREIT's gross revenue grew 18.2% in FY2022 on full-year contribution from acquisitions
- FY2022 gross revenue and net property income rose by 18.2% and 14.9% respectively year-on-year on full-year contribution from acquisitions
- Income available for distribution increased 0.8% year-on-year to €34.6 million but distribution per unit was down 8.2% to 2.69 € cents
- Weighted average lease expiry improved to 5.0 years as at 31 December 2022 from 3.8 years a year ago due to lease renewals and new leases secured during the year
- Aggregate leverage remained low at 32.0%, with substantially all of the bank borrowings hedged and no refinancing requirements until 2026. Interest coverage ratio at a healthy 7.9 times
- Manager proactively engaging IREIT's existing tenants to retain them as well as focusing on filling up the vacant spaces at the portfolio assets
- Received green certifications for 15 properties under IREIT's French portfolio, with the remaining 12 properties on track to attain their certifications by first quarter of 2023
SINGAPORE | 23 FEBRUARY 2023
For immediate release
IREIT Global ("IREIT"), a Europe-focused real estate investment trust managed by IREIT Global Group Pte. Ltd. (the "Manager"), is pleased to report the financial results for the second half year and financial year ended 31 December 2022 ("2H2022" and "FY2022", respectively).
Gross revenue for 2H2022 increased by 10.7% year-on-year to €31.6 million, while net property income rose by 5.2% to €24.4 million over the same period. The increase was mainly due to the contribution from the acquisitions of the French portfolio and Parc Cugat in 3Q2021, step-up rents and CPI indexation. Income available for distribution was impacted mainly by higher property operating expenses related to higher portfolio vacancy, higher tax costs, and management fees payable 100% in cash (versus 50% in cash for FY2021). As a
Joint Sponsors of IREIT Global:
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IREIT Global Group Pte. Ltd.
(as Manager of IREIT Global)
1 Wallich Street #15-03 Guoco Tower Singapore 078881 Main (65) 6718 0590 www.ireitglobal.com
Media Release
result, income available for distribution for 2H2022 decreased by 14.7% year-on-year to €16.4 million, while the distribution per unit ("DPU") amounted to 1.28 € cents, down 14.7% year-on-year.
For FY2022, gross revenue came in at €61.7 million, up 18.2% year-on-year, whereas net property income was 14.9% higher at €48.8 million. In addition, income available for distribution was largely flat at €34.6 million and DPU for the full-year registered 2.69 € cents, representing a decrease of 8.2% year-on-year. Based on the closing unit price of S$0.505 as at 30 December 2022, the FY2022 DPU translates to a healthy distribution yield of 7.6%. (1)
Portfolio occupancy was down to 88.3% as at 31 December 2022 from 95.7% a year ago, due mainly to Darmstadt Campus being vacant since December 2022 with the departure of its sole tenant, Deutsche Telekom. This contributed partially to the 2.5% year-on-year decline in IREIT's portfolio valuation to €950.5 million as at 31 December 2022, and may have some impact on IREIT's future distributions.
Mr Louis d'Estienne d'Orves, Chief Executive Officer of the Manager, said, "We are pleased to grow the gross revenue of IREIT's portfolio, delivering growth of 18.2% year-on-year. We will continue to proactively engage our existing tenants to retain them, as well as focus on filling up the vacant spaces at IREIT's portfolio assets in 2023. At the same time, on the environmental, social and governance ("ESG") front, we are working to improve the energy efficiency and marketability of IREIT's portfolio. To this end, we have successfully attained green certifications for 15 properties under IREIT's French portfolio, with the remaining 12 properties on track to receive their certifications by the first quarter of 2023. We will continue to strive to make a positive impact on the communities that IREIT operates in while creating long-term value for Unitholders."
IREIT's weighted average lease expiry ("WALE") improved to 5.0 years as at 31 December 2022 from 3.8 years a year ago, as a result of the six-year lease extension for 100% of Bonn Campus and the 12-year major new lease for approximately 5,300 sqm data centre space at Sant Cugat Green during the year. In addition, IREIT will continue to benefit from higher rents due to rising inflation as its portfolio leases have rental escalation clauses pegged to CPI, while the high level of hedging on its existing bank borrowings will cushion IREIT from any impact due to rising interest rates. Notably, IREIT's aggregate leverage as at 31 December 2022 remained low at 32.0%, with substantially all of the bank borrowings hedged and no
(1) Based on S$1.4331 per € as at 30 December 2022 as extracted from MAS website
Joint Sponsors of IREIT Global:
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IREIT Global Group Pte. Ltd.
(as Manager of IREIT Global)
1 Wallich Street #15-03 Guoco Tower Singapore 078881 Main (65) 6718 0590 www.ireitglobal.com
Media Release
refinancing requirements until 2026. Interest coverage ratio was also at a healthy level of 7.9 times.
On the investment front, the repricing of assets may also bring about attractive opportunities, allowing IREIT to diversify and strengthen its long-term income streams. The Manager is actively exploring various avenues to broaden IREIT's funding sources so that it is well- positioned to pursue such investment opportunities as and when they arise.
Half Year Ended 31 December | Financial Year Ended 31 December | |||||||||
2H2022 | 2H2021 | Variance | FY2022 | FY2021 | Variance | |||||
Actual | Actual | (%) | Actual | Actual | (%) | |||||
Gross revenue (€ '000) | 31,580 | 28,521 | 10.7 | 61,650 | 52,167 | 18.2 | ||||
Net property income (€ '000) | 24,362 | 23,155 | 5.2 | 48,797 | 42,482 | 14.9 | ||||
Income available for | 16,414 | 19,237 | (14.7) | 34,647 | 34,386 | 0.8 | ||||
distribution (€ '000) | ||||||||||
Income to be distributed to | 14,772 | 17,313 | (14.7) | 31,182 | 30,947 | 0.8 | ||||
Unitholders (€ '000) | ||||||||||
Distribution per Unit | 2H2022 | 2H2021 | Variance (%) | FY2022 | FY2021 | Variance (%) | ||||
- € cents | 1.28 (1) | 1.50 (2) | (14.7) | 2.69 (1) | 2.93 (2) | (8.2) |
- Total issued Units as at 31 December 2022 was 1,155,891,421 (31 December 2021: 1,154,591,595).
- IREIT issued 11,372,868 new Units pursuant to an equity placement offering on 30 June 2021 and 201,137,870 new Units pursuant to an equity preferential offering on 21 July 2021.
ABOUT IREIT GLOBAL
www.ireitglobal.com | SGX Main Board Listing
IREIT Global (SGX-UD1U) which was listed on 13 August 2014, is the first Singapore-listed 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.
Joint Sponsors of IREIT Global:
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IREIT Global Group Pte. Ltd.
(as Manager of IREIT Global)
1 Wallich Street #15-03 Guoco Tower Singapore 078881 Main (65) 6718 0590 www.ireitglobal.com
Media Release
IREIT Global's current portfolio comprises five freehold office properties in Germany, five freehold office properties in Spain and 27 freehold retail properties in France.
IREIT Global is managed by IREIT Global Group Pte. Ltd. (the "Manager"), which is jointly owned by Tikehau Capital and City Developments Limited ("CDL"). Tikehau Capital is global alternative asset management group listed in France, while CDL is a leading global real estate company listed in Singapore.
ABOUT TIKEHAU CAPITAL
www.tikehaucapital.com | Paris Euronext, Compartment A Listing
Tikehau Capital is a global alternative asset management group with €38.8 billion of assets under management as at 31 December 2022. Tikehau Capital has developed a wide range of expertise across four asset classes (private debt, real assets, private equity and capital markets strategies) as well as multi-asset and special opportunities strategies. Tikehau Capital is a founder-led team with a distinctive business model, a strong balance sheet, proprietary global deal flow and a track record of backing high-quality companies and executives.
Deeply rooted in the real economy, Tikehau Capital provides bespoke and innovative alternative financing solutions to the companies it invests in and seeks to create long-term value for its investors, while generating positive impacts on society. Leveraging its strong equity base (€3.1 billion of shareholders' equity as at 31 December 2022), Tikehau Capital invests in its own capital alongside its investor-clients within each of its strategies.
Controlled by its managers alongside leading institutional partners, Tikehau Capital is guided by a strong entrepreneurial spirit and DNA, shared by its 742 employees across its 14 offices in Europe, Asia and North America. Tikehau Capital is listed on compartment A of the regulated Euronext Paris market (ISIN: FR0013230612; Ticker: TKO.FP).
Joint Sponsors of IREIT Global:
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IREIT Global Group Pte. Ltd.
(as Manager of IREIT Global)
1 Wallich Street #15-03 Guoco Tower Singapore 078881 Main (65) 6718 0590 www.ireitglobal.com
Media Release
ABOUT CITY DEVELOPMENTS LIMITED
www.cdl.com.sg | SGX Main Board Listing
City Developments Limited ("CDL") is a leading global real estate company with a network spanning 104 locations in 29 countries and regions. Listed on the Singapore Exchange, CDL is one of the largest companies by market capitalisation. Its income-stable and geographically diverse portfolio comprises residences, offices, hotels, serviced apartments, retail malls and integrated developments. With a proven track record of 60 years in real estate development, investment and management, CDL has developed over 48,000 homes and owns around 23 million square feet of gross floor area in residential for lease, commercial and hospitality assets globally. Along with its wholly-owned hotel subsidiary, Millennium & Copthorne Hotels Limited, CDL has 155 hotels worldwide, many in key gateway cities.
FOR FURTHER ENQUIRIES
Head of Investor Relations and Capital Markets
Mr Kevin Tan
- 6718 0593 Kevin.Tan@ireitglobal.com
IMPORTANT NOTICE
This news release is not for distribution, directly or indirectly, in or into the United States and is not an offer of securities for sale in the United States or any other jurisdictions.
This news release is for information purposes only and does not constitute an invitation or offer to sell or issue, or any solicitation of any offer to acquire any securities of IREIT in Singapore or any other jurisdiction nor should it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever.
The value of the Units and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal
Joint Sponsors of IREIT Global:
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IREIT Global published this content on 24 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 February 2023 01:06:13 UTC.
