IREIT Global reported income to be distributed to unitholders of €5.0 million for the half-year ended Jun 30, largely unchanged from the preceding six-month period, as stable recurring revenue offset higher finance costs stemming from last October’s debt refinancing.
Gross revenue rose 8.8 percent sequentially to €26.0 million, while distribution per unit (DPU) came in at €0.37 euro-cent, marginally below the €0.38 euro-cent declared for 2H2025. The trust retained 10 percent of income for working capital and capital expenditure, and continued to capitalise interest related to its fixed-rate green notes issued in May 2025.
By property class, net property income increased 15.3 percent from the prior half to €17.1 million, supported by an improvement in the group’s overall occupancy rate to 94.4 percent from 89.4 percent at end-2025. German assets contributed the bulk of new leases following a 10-year commitment from a federal tenant at Darmstadt Campus, while seven new and renewed tenancies across the Spanish portfolio pushed occupancy there to 92.6 percent.
Finance costs rose to €7.0 million on higher loan margins tied to the October 2025 refinancing of the German portfolio and the start of new interest-rate swaps in January 2026. Excluding these higher borrowing expenses, underlying earnings were broadly stable.
Strategic initiatives during the period centred on the €350 million Berlin Campus repositioning, where Phase 1—comprising hospitality assets—was 32 percent complete as at end-June and is on track for third-quarter 2027 completion. The manager is in talks with prospective occupiers for the Phase 2 office component to allow capital expenditure to proceed once substantial pre-leases are secured.
On capital management, IREIT extended the German portfolio’s debt maturity to July 2029 last year and aims to finalise refinancing for its Spanish facilities in 2H2026. While management anticipates further increases in finance costs related to Berlin Campus and upcoming refinancing, it continues to weigh alternative funding options to mitigate the impact on distributions.
Chief executive Peter Viens noted that first-half performance remained resilient, citing stable underlying income and stronger leasing momentum in Germany and Spain. He added that higher borrowing costs are tempering distributable income, but emphasised ongoing efforts in active asset management, cost control and disciplined capital allocation to bolster earnings resilience in the medium term.
Looking ahead, the manager expects European real-estate sentiment to stay cautious amid geopolitical uncertainty and inflationary pressures. It plans to maintain its focus on tenant retention, new leases and measured capital deployment to enhance portfolio stability.