REIT-TIREMENT - REITs Investing & Personal Finance

A blog about REITs investment & personal finance

Sunday, February 28, 2021

IREIT Global Review @ 28 February 2021

Basic Profile & Key Statistics

IREIT Global s a pure office REIT that owns 9 properties in Germany and Spain.

Performance Review

Gross revenue, NPI and distributable income increased YoY by 11.8%, 13.2% and 17.7% respectively due to contribution from the balance 60% in Spanish properties. However, DPU decreased by around 19.6% YoY from 2.71 cents (2H 2019) to 2.18 cents due to enlarge unitholders base from the recent rights issue.

Lease Profile

  • Occupancy is slightly high at 95.8%
  • WALE is short at 3.5 years
  • Highest lease expiry within 5 years is slightly high at 31.7% which falls in 2024
  • All properties are freehold


Debt Profile

  • Gearing ratio is slightly low at 34.8%
  • Cost of debt is low at 1.8%
  • Fixed rate debt % is high at 86.3%
  • All debts are secured debts
  • WADE is long at 5.3 years 
  • Highest debt maturity within 5 years is low at 0%, but 100% of debt maturity falls in 2026. 
  • Interest coverage ratio is high at 7.4 times


Diversification Profile

  • Top geographical contribution is low at 34.5% (from 2019 Annual Report)
  • Top property contribution is high at 34.5% (from 2019 Annual Report)
  • Top tenant contribution is high at 42.2% 
  • Top 10 tenants contribution is high at 94.1% 

Key Financial Metrics

  • Property yield is moderate at 5.2%
  • Management fees over distribution is competitive at 11.1% in which unitholders receive S$ 9.01 for every dollar paid 
  • Distribution on capital is high at 3.8%
  • Distribution margin is high at 63.3% 

Trends

  • Uptrend -NAV per Unit, Interest Coverage Ratio 
  • Downtrend - DPU, Property Yield, Distribution on Capital, Distribution Margin


Relative Valuation

  • Dividend Yield - Past 4 quarters DPU @ 5.03 cents / average yield @ 7.95% = S$ 0.635
  • Price/NAV - NAV @ S$ 0.766 x average P/NAV @ 1.03 = S$ 0.79


Author's Opinion

 Favorable Less Favorable
All Freehold PropertiesShort WALE
Low Cost of Debt0% Unsecured Debt
Long WADEHigh Top Property Contribution
No Debt Maturity within 5 yearsHigh Top Tenant & Top 10 Tenants Contributions
High Interest Coverage RatioDPU Downtrend
Low Top Geographical ContributionProperty Yield Downtrend
Competitive Management FeesDistribution on Capital Downtrend
High Distribution on CapitalDistribution Margin Downtrend
High Distribution Margin 
NAV per Unit Uptrend 
Interest Coverage Ratio Uptrend

Despite the DPU dilution arising from rights issue for the recent acquisition, IREIT fundamental remains healthy and unaffected by COVID-19 situation. 


For more information, you could refer to:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview of Singapore REIT

REIT Analysis - List of previous REIT analysis posts

REIT-TIREMENT Patreon - Support this blog as a Patron and get SREITs Dashboard PDF

REIT Investing Community - Facebook Group where members share and discuss REIT topic


*Disclaimer: Materials in this blog are based on my research and opinion which I don't guarantee accuracy, completeness, and reliability. It should not be taken as financial advice or a statement of fact. I shall not be held liable for errors, omissions as well as loss or damage as a result of the use of the material in this blog. Under no circumstances does the information presented on this blog represent a buy, sell, or hold recommendation on any security, please always do your own due diligence before any decision is made.

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