On 23 May 2017, purchased 10,000 shares of IREIT Global at $0.755 per share.
IREIT Global is a pure focused Europe office reit listed in SGX which comprises of 5 freehold office buildings in Germany.
Distribution per unit is SGD 0.0633 for FY 2016 , however the distribution policy for FY 2017 is 90% of the income instead of 100% of the income.
That will translate to DPU of SGD 0.05697.
Based on my purchase price @ $0.755, the yield will be 7.55%.
Occupancy rate is at 99.8% , WALE is 5.9 years.
Last year, Tikehau Capital a pan Europe asset management firm had acquired 80% of the fund Manager.
In my opinion IREIT Global will include other asset type such as retail, healthcare & logistic in its portfolio when opportunity arises.
88% of the debts are at fixed interest rates at effective interest rate of 2 % annually , though the gearing is very high at 41.6% which means rights issue will be very likely if IREIT Global intend to acquire yield accretive assets.
Average weighted debt maturity is 2.8 years which is quite short
As the IREIT revenue is in euro & distribution will be pay out in SGD ,there is currency risk involved, hedging is required to reduce the downside.
Last comes the most important part , 1 single largest tenant Deutsche Telekom formed 52.6 % of IREIT portfolio which spells disaster if the former do not chose to renew lease with IREIT.
**Slides from IREIT Global website
IREIT Global is a pure focused Europe office reit listed in SGX which comprises of 5 freehold office buildings in Germany.
That will translate to DPU of SGD 0.05697.
Based on my purchase price @ $0.755, the yield will be 7.55%.
Occupancy rate is at 99.8% , WALE is 5.9 years.
Last year, Tikehau Capital a pan Europe asset management firm had acquired 80% of the fund Manager.
In my opinion IREIT Global will include other asset type such as retail, healthcare & logistic in its portfolio when opportunity arises.
88% of the debts are at fixed interest rates at effective interest rate of 2 % annually , though the gearing is very high at 41.6% which means rights issue will be very likely if IREIT Global intend to acquire yield accretive assets.
Average weighted debt maturity is 2.8 years which is quite short
As the IREIT revenue is in euro & distribution will be pay out in SGD ,there is currency risk involved, hedging is required to reduce the downside.
Last comes the most important part , 1 single largest tenant Deutsche Telekom formed 52.6 % of IREIT portfolio which spells disaster if the former do not chose to renew lease with IREIT.
**Slides from IREIT Global website
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