Ireit Global · SGX:8U7U
Ireit Global — FY2023 Earnings Presentation
25 slides from Ireit Global's earnings presentation, Feb 22, 2024
Slide 1: FY2023 Results Presentation
FY2023 Results Presentation 22 February 2024 Joint Sponsors of IREIT Global:
Slide 2: Important Notice
Important Notice This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and as
Slide 3: Pure Play Western Europe-Focused REIT
Pure Play Western Europe-Focused REIT Investing in real estate used primarily for office, retail and industrial (including logistics) purposes Joint Sponsors: Tikehau Capital, City Developments Limited France 23% Portfolio: Germany: 5 office properties France: 44 retail properties Retail Spain: 5 of
Slide 4: Unique S-REIT focusing on Western Europe
Unique S-REIT focusing on Western Europe (1) Rent €899.0m 54 446,038 sqm 117 90.4% Portfolio Valuation Properties Lettable area Leases Occupancy Rate Germany Spain France Berlin Campus Bonn Campus Delta Nova IV (Madrid) Delta Nova VI (Madrid) Cergy Claye-Souilly Darmstadt Campus (Greater Frankfurt)
Slide 5: Agenda
Agenda Key Highlights 6 Financial Performance 9 Portfolio and Asset Management 15 Market Review 20 Looking Ahead 23 5
Slide 6: Key Highlights
Key Highlights Berlin Campus 6
Slide 7: Stable FY2023 Performance
Stable FY2023 Performance Continued focus on maintaining portfolio resilience and healthy balance sheet €49.9m 90.4% 37.9% 1.9% Net Property Income Portfolio Occupancy Aggregate Leverage Weighted Average Interest Rate +2.3% YoY 88.3% as at 31 Dec 2022 32.0% as at 31 Dec 2022 1.8% as at 31 Dec 2022 ▪
Slide 8: Acquisition and Divestment
Acquisition and Divestment Sharpening portfolio resilience with acquisitions and capital recycling activities ▪ Completed acquisition of 17 retail properties in France ▪ Completed divestment of Il∙lumina, a Spanish office occupied by leading European discount retailer B&M building, on 31 Jan 2024 at
Slide 9: Financial Performance
Financial Performance Bonn Campus 9
Slide 10: Operating & Financial Performance
Operating & Financial Performance (€ ‘000) 2H2023 2H2022 Variance (%) FY2023 FY2022 Variance (%) Gross Revenue 36,549 31,580 15.7 64,977 61,650 5.4 Property Operating Expenses (8,618) (7,218) 19.4 (15,081) (12,853) 17.3 Net Property Income 27,931 24,362 14.6 49,896 48,797 2.3 Income to be Distribute
Slide 11: Distribution Per Unit
Distribution Per Unit Distribution Per Unit 2H2023 2H2022 Variance (%) FY2023 FY2022 Variance (%) - Based on total issued Units as 0.94 (1) 1.28 (2) (26.6) 1.87 (1) 2.69 (2) (30.5) of 31 Dec 2023 (€ cents) - Based on enlarged Units following Preferential Offering on 19 Jul 2023 and 0.94 1.09 (3) (13
Slide 12: Distribution Details
Distribution Details Distribution Period 1 Jul 2023 to 31 Dec 2023 Distribution per Unit (“DPU”) 0.94 € cents Ex-Date 29 Feb 2024 (Thursday) Record Date 1 Mar 2024 (Friday) Distribution Payment Date 21 Mar 2024 (Thursday) ▪ Distributions will be in € and Unitholders who are direct account holders of
Slide 13: Financial Position
Financial Position (€ ‘000) As at 31 Dec 2023 As at 31 Dec 2022 Variance (%) Investment Properties 880,843 950,500 (7.3) Assets Held for Sale 24,698 (1) - N.M. Total Assets 992,076 1,039,140 (4.5) Borrowings 371,411 329,694 12.7 Total Liabilities 446,456 414,437 7.7 Net Assets Attributable to Unitho
Slide 14: Healthy Gearing with Limited Impact from Rate Hikes
Healthy Gearing with Limited Impact from Rate Hikes As at 31 Dec 2023 As at 31 Dec 2022 Debt Maturity Profile Aggregate Leverage (5) German Portfolio Gross Borrowings €200.8m 374.0 332.7 42.5% Outstanding (€’m) Aggregate Leverage (1), (2) 37.9% (3) 32.0% 38.1% 37.9% Spanish Decathlon Weighted Averag
Slide 15: Portfolio and Asset Management
Portfolio and Asset Management Il ∙lumina 15
Slide 16: Diversified Portfolio in Key European Markets
Diversified Portfolio in Key European Markets 5 German Properties 54 Lettable Area (sqm) 201,103 Properties Valuation (€ m) (1) 539.5 % of Portfolio 60.0% 446,038 sqm Occupancy (%) 87.7% Lettable Area WALE (years) (2) 3.4 44 French Properties €899.0m Lettable Area (sqm) 157,256 € Valuation (1) €999.
Slide 17: Portfolio Valuation
Portfolio Valuation Independent Valuation (€ m) Purchase Net Initial Portfolio 12-month Change vs (3) As at 31 Dec As at 31 Dec Consideration Yield Location Change (%) Purchase (%) 2023 2022 (€ m) (%) (4) Germany 539.50 659.70 427.30 -18.2% +26.3% 4.5% (1) Spain 156.54 164.30 161.00 -4.7% -2.8% 6.1%
Slide 18: Well-Staggered Leases with Blue-Chip Tenants
Well-Staggered Leases with Blue-Chip Tenants Key Tenants (1) Lease Break and Expiry Profile (1) Weighted Average Lease Expiry: 4.9 years 20.7% 54.0% 28.8% To reposition Berlin Campus if main tenant vacates in Dec 2024 upon lease expiry 32.3% 29.1% 16.7% 26.8% 2.8% 20.6% 4.4% 10.1% 10.9% 5.9% 12.2% 1
Slide 19: Active Asset Management to Optimise Portfolio
Active Asset Management to Optimise Portfolio 4Q2023 Key Updates German Portfolio: c. 3,750 sqm ▪ New 10-year lease signed with major provider of mobile roof antenna in Germany for two office floors (c.3,500 sqm) at Münster 4Q2023 New Lease Take-Up North building ▪ Federal tenant at Darmstadt Campus
Slide 20: Market Review
Market Review Sables d'Olonne 20
Slide 21: European Office Market
European Office Market (1) Leasing activity to recover gradually as tenants react to weak economic growth and new workplace strategies Office Leasing Volume, Europe, 2015-2024 (1) ▪ Leasing volume may likely show moderate growth of c.10% in 2024, but still below historical norms, as occupiers contin
Slide 22: European Retail Market
European Retail Market (1) Better consumer fundamentals to herald improving footfall and sales figures ▪ Retail sales volume should improve in Europe Retail Sales Volume Index and Consumer Confidence (1) 2024 as inflation rate eases and real income rises. ▪ Retail footfall and sales at key retail as
Slide 23: Looking Ahead
Looking Ahead B&M Tours (Saint-Cyr-sur-Loire) 23
Slide 24: Looking Ahead
Looking Ahead ▪ European real estate market is expected to improve in 2024 but remains fraught with challenges from: ✓ Uncertain geopolitical environment and economic outlook, and potentially protracted periods of high inflation and interest rates. ▪ The repricing of assets may bring about attractiv
Slide 25: Thank You
Thank You For enquiries, please contact: Mr Kevin Tan Head of Investor Relations and Capital Markets Tel: (65) 6718 0593 Email: [email protected] Follow our LinkedIn: https://www.linkedin.com/company/ireitglobal Concor Park 25