IREIT Global
annual report 2014
Financial and Capital
Management Review
IREIT’s inaugural financial reporting is for the period from13 August
2014 to 31 December 2014. For this financial period, IREIT reported
income distribution to Unitholders of €6.4 million which was in line
with forecast.
DPU of S$0.0257 was marginally higher than forecast. IREIT was
forecasted to pay an annualised distribution yield of 7.6% for the
period from 13 August 2014 to 31 December 2014 based on the
IPO offer price of S$0.880. Based on the closing price of S$0.770
as at 24 March 2015 (being the latest practicable date prior to the
publication of this Annual Report), IREITwas trading at an annualised
distribution yield of 8.6%.
Borrowings
IREIT has in place a 5-year secured term loan facility (the “Facility”).
The Facility was drawn down in an amount of €96.6 million as part
payment for the acquisition of the properties.
The Facility bears fixed interest rates throughout the tenure of the
Facility and the average effective interest rate of the Facility including
the amortisationof the debt upfront transaction costs is approximately
2.1%per annumuntil the maturity date of the Facility.
The loan amount drawn down under the Facility is repayable on a
bullet basis in 2019 and is secured on IREIT’s existing properties, the
assignment of rental proceeds and a fixed charge over the rent and
deposit accounts related to the existing properties.
Gearing
As at 31December 2014, IREIThas gross borrowings of €96.6million,
representing a gearing ratio of approximately 31.5%.
Hedging
IREIT has entered into forward foreign currency exchange contracts
to hedge the currency risk for distribution to Unitholders. The
distributable income for the period from 13 August 2014 to 31
December 2014 was fully hedged at an average exchange rate of
approximately S$1.68 per Euro.
IREIT has also hedged the distributable income for 2015 at an
average exchange rate of approximately S$1.55 per Euro. When and if
appropriate, theManagermay enter intohedging transactions in respect
of distributions for future periods.
As at 31 December 2014, IREIT’s exposure to derivatives related to the
forward foreign currency exchange contracts represents a negligible
percentage of its net assets and market capitalisation. The fair value of
the derivatives as at 31 December 2014 is disclosed under Note 6 on
pages 84 and 85 of this Annual Report.
% Average Hedge Rate
Distributable Income 2014
100
EUR/SGD 1.68
Distributable Income 2015
100
EUR/SGD 1.55
Total Assets
(
€
’000)
306,514
AS AT 31 DECEMBER 2014
Investment Properties
(
€
’000)
290,600
Total Debt
(
€
’000)
96,594
Total Liabilities
(
€
’000)
106,540
Net Assets attributable
toUnitholders
(
€
’000)
199,974
NAV perunit
(€
/unit)
0.48
(1)
GEARING Ratio
(2)
31.5%
Effective Interest Rate
2.1%
per annum
Interest Cover Ratio
(3)
13
times
Notes:
1) The NAV per Unit is computed based on
the Units in issue and to be issued as at
31 December 2014 of 420,501,706
2) Based on total debt over total assets as at 31
December 2014
3) Based on net operating income over interest
expense for the period from the Listing Date to
31 December 2014
