IREIT Global's Bonn Campus (Photo: IREIT Global)

Singapore-listed IREIT Global reported late on 28 February that it has achieved a DPU of 6.33 Singapore cents for its FY 2016, an increase of 20.8% year-on-year from the 5.24 cents paid for FY 2015.

This after the REIT achieved a DPU of 1.58 cents for its 4Q 2016, slightly higher than the 1.57 cents recorded in the preceding quarter.

However the figure represents a fall of 2.5% from the 1.62 cents reported for 4Q 2015.

“On a full year basis, the results were boosted by the additional income derived from the strategic acquisition of the Berlin Campus”, said Aymeric Thibord, CEO of IREIT, in a statement on the results.

The REIT’s total portfolio occupancy as at 31 December 2016 was at 99.8% with a weighted average lease expiry (WALE) of 5.9 years based on gross rental income.

“Deutsche Telekom’s real estate leasing subsidiary, GMG GeneralmietgesellschaftmbH, will be vacating one out of the six floors it currently occupies in the Münster South Building, from 1 April 2017”, said the REIT.

“The release of the space presents an opportunity for IREIT to convert the building into a multi-tenant building”, it added, further elaborating that the conversion is in line with the REIT’s strategy to retain blue-chip tenants while broadening lease profiles.

The REIT’s aggregate leverage as at 31 December 2016 was at 41.6% with a total debt of EUR198.6 million (USD209 million) and total cost of debt of 2.0%.

Given recent affiliation to Tikehau Capital, the REIT reiterated that its investment mandate now goes beyond office properties, although its focus will still be on the European continent.

“We are confident that the proposed broadening of the investment mandate will be beneficial to IREIT in achieving its objectives of long-term portfolio growth, and greater asset and tenant diversification”, said Thibord.

Units of IREIT last changed hands on the Singapore Exchange at SGD0.76.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.