IREIT Global, a Europe-focused real estate investment trust, has announced a 26% year-on-year decrease in its distribution per unit (DPU) for the first half of 2025, amounting to €0.71 cents. This decline is attributed to the full vacancy at Berlin Campus, which began on 1 January 2025, as the property undergoes a significant repositioning project. The construction works commenced in the second quarter of 2025, following the acquisition of necessary permits and Unitholders’ approval.
Gross revenue for the period fell by 27.5% to €26.6 million, whilst net property income decreased by 33.3% to €18.0 million. The absence of income from dilapidation costs, previously paid by the main tenant at Berlin Campus in 1H2024, further contributed to the decline. Despite these challenges, IREIT’s CEO, Peter Viens, expressed optimism, stating, “IREIT’s portfolio has continued to display resilience. We are heartened with the progress made at strengthening IREIT’s portfolio through our leasing efforts at the Spanish portfolio.”
The Spanish Portfolio saw an increase in occupancy from approximately 77% to 80%, with new leases and extensions covering over 7,000 square metres. Meanwhile, the repositioning of Berlin Campus is supported by the issuance of S$85 million in green notes, and long-term leases have been secured with hospitality operators for 24% of the lettable area.
Looking forward, IREIT is in advanced discussions to refinance its German and Spanish portfolios, aiming to extend debt maturity to July 2027. The European real estate market is anticipated to improve, bolstered by supportive fiscal policies, although financial volatility and geopolitical tensions may pose challenges.
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