Germany-focused IREIT Global announced on 10 August that it has achieved a distribution per unit (DPU) of 1.6 Singapore cents for its 2Q 2016, an increase of 45.5 % from the 1.10 cents recorded for 2Q 2015.
Gross revenue and net property income for the period saw a 57.4% and 57% growth year-on-year to EUR8.5 million and EUR4.9 million respectively. Distributable income for the period came in 47% higher at EUR6.4 million.
However the DPU recorded is 8.6% lower than the 1.75 cents forecast for the period as disclosed in the REIT’s IPO prospectus from August 2014.
The Singapore-listed office REIT’s leverage for the period was at 41.8% with an average weighted debt maturity of 3.3 years.
“We expect the performance of IREIT’s property portfolio to remain stable, underpinned by its freehold quality assets, long stable leases and diversified blue chip tenant base”, said Itzhak Sella, CEO of IREIT, on the quarter’s results.
“We remain optimistic that the underlying strength of the German economy as well as the quality of its properties will enable IREIT to continue delivering stable income to its unitholders for FY2016”, he added.
Units of IREIT Global finished the trading day about 0.7% lower from its previous close on the Singapore Exchange to end at SGD0.755.