Chairman & CEO
Letter to Unitholders
DEAR UNITHOLDERS
On behalf of the Board of Directors, we are pleased to
present IREIT’s second annual report.
The past twelve months have been an exciting and
rewarding time for us. We successfully completed our
first rights issue to secure our inaugural Berlin property
– a prime piece of real estate in an up-and-coming area.
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expanded our portfolio, increased our total asset value
and established our footprint in one of Germany’s leading
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a result of this strategic investment, our property valuation
now stands at €441.4 million, an increase of 52.0%, and our
net asset value has risen to €251.1 million.
FINANCIAL PERFORMANCE FOR 2015
We continued to show strong performance in the year, more
than tripling gross revenue to €26.9 million. Distribution
income also rose significantly to approximately €20.8
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were able to maintain a healthy balance sheet and report a
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We were delighted to deliver a distribution per Unit (“DPU”)
of €3.39 cents to our Unitholders, a more than twofold
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ACQUIRING FOR FUTURE GROWTH
Our solid performance over the past year has been
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to greater heights.
In growing our presence, we have been actively pursuing
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strategy include focussing on strategic and yield-accretive
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strong principal tenant with a long weighted average lease
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of 7.1% – comparable to that of IREIT’s existing portfolio –
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a compelling addition to our strong and stable portfolio.
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the largest asset in our portfolio.
To fund the acquisition, we employed a combination of
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gross proceeds of approximately S$88.7 million (“Rights
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Rights Issue received overwhelming support from our major
shareholders, and was oversubscribed at a subscription rate
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our inaugural acquisition in Berlin.
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sections of eight and thirteen storeys respectively, and is
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and-coming area and a hotspot for Internet, media and
technology companies. This leaves IREIT well poised to
experience strong rental growth in the years to come.
The property features a lettable area of 79,097 sqm and is
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once the train station expands to offer regional train
services across Germany in 2017/2018.
Our latest acquisition also brings with it a strong main
tenant, the Deutsche Rentenversicherung Bund, a federal
pension fund and the largest of the 16 federal pension
institutions in Germany. This will not only serve to diversify
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communications sector.
Building a solid foundation
3
IREIT Global
ANNUAL REPORT 2015
