Link: https://links.sgx.com/1.0.0/corporate-announcements/5ARN1VBYU7KIJXZD/e15a9f70ac8a05ee06676841a8bb6307538fdacd99d81faf4d383bc6f03a010f

Summary:

• Stable Performance: IREIT Global reported stable performance in the first quarter of 2025, with a focus on portfolio resilience and maintaining a healthy balance sheet.
• Portfolio Occupancy: Portfolio committed occupancy saw a marginal increase to 88.7% as of December 31, 2024, primarily driven by the securing of new leases within the Spanish Portfolio.
• Financial Stability: The aggregate leverage remained stable at 37.7% as of December 31, 2024, which is lower than the S-REITs office subsector average. The weighted average interest rate was stable at 1.9%, with a high percentage of bank borrowings (98.5%) being hedged.
• Lease Profile: The weighted average lease expiry stood at 5.7 years as of March 31, 2025, supported by new leases and no lease expiries during the quarter.
• Berlin Campus Repositioning: Unitholders have approved the plan to reposition the Berlin Campus into a multi-let, mixed-use asset. Construction is expected to commence in the second quarter of 2025, and long-term leases covering approximately 24% of the lettable area have been secured with two hospitality operators.
• Portfolio Diversification: IREIT Global's portfolio consists of 53 properties located across Germany, France, and Spain, with a total valuation of €857.3 million as of December 31, 2024, diversified between office and retail spaces.
• Lease Management: Active asset management strategies include securing new leases and renewals in the German and Spanish portfolios.
• Financial Management: IREIT Global is actively managing its debt maturity profile and maintaining a healthy gearing ratio.
• Market Outlook: While there has been improvement in the European real estate market, potential global financial volatility and geopolitical developments could temper the pace of recovery in 2025.
• Strategic Focus: The manager's key strategic priorities include increasing occupancy rates across the portfolio, securing optimal financing for the Berlin Campus repositioning project, and refinancing existing borrowings.