Committed occupancy is marginally higher due to new leases committed within the Spanish portfolio
[Singapore] IReit Global reported 88.7 per cent occupancy rate at the end of Q1 2025, up from 88.5 per cent at the end of Q4 2024, in a business update on Tuesday (Apr 29).
The committed occupancy was marginally higher due to new leases committed within the Spanish portfolio. The weighted average lease expiry stood at 5.7 years at the end of Q1 2025 from 5.9 years at the end of Q4 2024, supported by new leases and no expiring leases during the quarter.
Aggregate leverage held steady at 37.7 per cent as at Mar 31, 2025 from 37.6 per cent as at Dec 31, 2024. This was due to the voluntary partial loan repayment of five million euros (S$7.5 million) in relation to the Spanish portfolio, offset by lower cash balance from the distribution payment and loan repayment.
The European real estate market has improved but the recent geopolitical developments and tempered investor interest may slow recovery in 2025. However, the recently announced 500 billion euro investment programme on infrastructure and defence is expected to support the region’s economy.
The manager of IReit will continue its leasing efforts to increase occupancy rates, especially at the Darmstadt Campus in Germany and the Spanish portfolio.
The repositioning of the Berlin campus is expected to have a significant impact on IReit’s distribution to unitholders due to the absence of income. The manager aims to start construction work in Q2 2025, targeting a completion by Q4 2027.
Units of IReit closed unchanged at S$0.23 on Tuesday.
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