IREIT Global - Construction work at Berlin Campus to start in 2Q 2025

REITs

By Gerald Wong, CFA • 03 May 2025

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IREIT Global reported portfolio occupancy rate excluding Berlin Campus of 88.7% as at 31 March 2025, increasing slightly from 88.5% as at 31 December 2024.

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Slightly higher occupancy rate

IREIT Global reported portfolio occupancy rate of 88.7% as at 31 March 2025, increasing slightly from 88.5% as at 31 December 2024.

The reported occupancy excludes the Berlin Campus which is planned for repositioning in 2025.

The marginally higher occupancy was due to new leases committed within its Spanish portfolio.

Rental escalation of 3.4%

IREIT Global signed about 8,400 square metres of new leases and renewals in 1Q 2025, with the rental escalation at its existing portfolio at +3.4%.

Within its Spanish portfolio, leases renewals were secured on about 7,300 sqm with two major tenants for 3 and 5 years, respectively at Delta Nova IV & VI.

There was also a 5-year lease commencing in Mar 2025 signed with 1 tenant for c.730 sqm at Parc Cugat Green.

As a result, the committed occupancy at its Spanish portfolio rose to 66.7% as at 31 March 2025 from 64.0% as at 31 December 2024.

Update on repositioning of Berlin Campus

IREIT Global received unitholders’ approval for the repositioning project at an extraordinary general meeting (EGM) on 25 April. Following the grant of building permit in April 2025, construction works is expected to start in 2Q 2025.

As announced earlier, IREIT has secured long term leases with two hospitality operators taking up about 24% of the lettable area.

The total projected capital expenditure for the repositioning of Berlin Campus is expected to be in the range of about €165 million to €180 million, including about €82.0 million in relation to the two hospitality leases that has been previously announced.

The project is expected to be completed in 4Q 2027, and IREIT’s distributions are expected to be significantly impacted during the repositioning period.

Aggregate leverage remained stable

IREIT Global’s aggregate leverage was stable at 37.7% as at 31 March 2025, compared to 37.6% as at 31 December 2024.

Gross borrowings fell due to the voluntary partial loan repayment of €5.0m in relation to the Spanish Portfolio.

However, this was offset by lower cash balance from the distribution payment and loan repayment.

IREIT Global’s weighted average interest rate was at 1.9% as at 31 March 2025, unchanged from 31 December 2025.

Ongoing negotiations with incumbent banks to refinance borrowings for German and Spanish Portfolios, and there are ongoing negotiations with incumbent banks to refinance borrowings for its German and Spanish portfolios.

IREIT balance sheet summary
	As of 31 Mar 2025	As of 31 Dec 2024
Gross Borrowings Outstanding (€’m)	354.1	359.1
Aggregate Leverage	37.7%	37.6%
Weighted Average Interest rate	1.9%	1.9%
Interest Coverage Ratio	6.7x	7.6x
Weighted average debt maturity	1.5 years	1.7 years
Source: Company data, Beansprout Research

Trading at 0.43x P/B

Based on its NAV per unit of S$0.55 as at 31 December 2024, IREIT currently trading at a price-to-book (P/B) valuation of 0.43x.

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