Darmstadt occupancy lifts from 43% to 71% on 9,070 sqm of new leases — but the post-refinancing 4.1% cost of debt and a Phase 2 anchor that still has to land by 3Q2026 are the two numbers that decide the next twelve months

IREIT Global's 1Q2026 business update — released 28 April 2026 — reports portfolio committed occupancy of 92.2% ex-Berlin Campus (vs 89.4% at 31 Dec 2025), driven by three new leases at Darmstadt Campus totalling c.9,070 sqm and a smaller 650 sqm letting at Delta Nova IV in Madrid. Including Berlin Campus — undergoing repositioning — portfolio occupancy is 75.0%. Aggregate leverage held at 44.7% (vs 44.6% at Dec-2025) on a €10m partial loan repayment for the Spanish Portfolio offset by lower cash following loan, distribution and capex payments. The headline number that has moved is the cost of debt: weighted average interest rate stepped from 2.8% at Dec-2025 to 4.1% at Mar-2026 as new interest-rate swap contracts on the German Portfolio became effective from 30 January 2026, lifting interest cost by ~130bps in a single quarter. ICR dropped to 2.3x (vs 2.7x at Dec-2025). 97.4% of bank borrowings are hedged. Five insights beyond the headline.

Portfolio committed occupancy 92.2% ex-Berlin (89.4% at Dec-2025); 75.0% including Berlin. WALE 5.4 years (vs 5.6 at Dec-2025). 1Q2026 leasing activity c.9,719 sqm of new leases and renewals at 8.3-year new-lease WAULT. Existing-portfolio rental escalation YTD −0.1%, with B&M France indexation −0.4%. Rents paid 100%. Portfolio valuation €798.1m at 31 Dec 2025 across 53 properties / 425,263 sqm — Germany 58.9% (€470.3m, 5 properties, 88.0% occ), France 25.2% (€200.7m, 44 properties, 100% occ), Spain 15.9% (€127.1m, 4 properties, 81.4% occ). Gross borrowings €401.5m (vs €410.5m at Dec-2025). Aggregate leverage 44.7%. Weighted average interest rate 4.1% (vs 2.8%). ICR 2.3x (vs 2.7x). Weighted average debt maturity 2.5 years. €20.0m UniCredit capex facility and €12.5m CDL loan facility undrawn — both ring-fenced for Berlin Campus capex. Market cap S$316.0m at 31 Mar 2026 closing price S$0.235. Price-to-NAV 0.47x. DPU yield on FY2025 distribution 6.9%.

IREIT's weighted average interest rate moved from 2.8% at 31 December 2025 to 4.1% at 31 March 2026 — a 130-basis-point step-up in a single quarter — as the new interest-rate swap contracts associated with the German Portfolio refinancing completed in October 2025 became effective from 30 January 2026. This is not a market-rate move; it is the swap fixings that were always going to print once the refinancing transition completed. The €200.8m German Portfolio loan extension to July 2029 was the strategic win — a four-year runway secured against an asset block that was facing 2026 maturity — but the cost was a hedged rate that is more than 130bps above the legacy book. ICR has compressed from 2.7x at Dec-2025 to 2.3x, a ratio that remains above the 1.5x MAS Code threshold but is meaningfully thinner cushion than peers carrying ICRs of 3-4x. 97.4% of bank borrowings remain hedged via swaps and caps, which removes incremental rate risk but locks the elevated cost in until the next refinancing cycle. The forward implication is that 2026 distributable income will absorb a full year of the 4.1% rate against a 2025 baseline that captured only two months. The Manager telegraphs this directly in the Looking Ahead section: 'Finance costs are projected to increase with the refinancing exercises and drawdown of more borrowings for the project.'

Darmstadt Campus — five buildings in Greater Frankfurt, the second-largest asset in the German portfolio — entered FY2024 at c.43% committed occupancy, the single biggest occupancy drag on the German book. In 1Q2026 the Manager signed three new leases totalling c.9,070 sqm, lifting committed occupancy to c.71%. The leases start in 2026 after fit-out works are completed, so the rental income lands in 2H2026 and 2027 rather than 1Q. New-lease WAULT across the quarter's lettings is 8.3 years — a long tail of revenue from a campus that until recently looked like it might need a repositioning of its own. Combined with the smaller Delta Nova IV letting (650 sqm office + storage, 3-year term, started Apr-2026) and ongoing 'advanced negotiations' for up to 6,890 sqm in the Spanish portfolio, the leasing pipeline coming into 2H2026 is the strongest the portfolio has had since 2023. The German ex-Berlin book is operationally the strongest it has been in years: 88.0% German occupancy ex-Berlin, B&M and Decathlon French portfolios at 100%, and Spanish portfolio at 81.4% with active leasing.

Berlin Campus is the structural item the deck does not bury. It is excluded from the 92.2% headline occupancy, and including it the portfolio occupancy is 75.0% — a 17-percentage-point delta that quantifies how much of the asset is currently producing zero income. The Phase 1 hospitality construction works started 2Q2025, contractor Züblin signed Aug 2025, construction 23% complete, delivery expected August 2027, costs in line with budget, funding secured via the €20.0m UniCredit capex facility and €12.5m CDL loan facility (both undrawn at 1Q2026 — capex draws will arrive over the construction window). Phase 1 is on rails. Phase 2 is the unresolved item. Office tenant discussions are 'still ongoing with several potential office tenants, including a potential anchor tenant, with the aim to secure a lease commitment by 3Q2026.' Lease signing is subject to Board approval. Budget and timeline for the works are subject to tenant requirements — i.e. the Manager has not yet committed Phase 2 capex because the anchor commitment that would size that capex has not yet landed. The notable language is in the Looking Ahead box: 'The Manager is assessing all the strategic and funding options to mitigate the impact of the Berlin Campus repositioning.' That sentence reads as a placeholder for a wider conversation — possibly partial divestment, JV equity, or a recapitalisation of the Berlin asset — that is not yet ready for disclosure but is being signalled. The 3Q2026 anchor decision is the gating item.

4. SPANISH REFINANCING IS THE NEXT MATURITY — €10M REPAYMENT IN MARCH 2026 WAS THE CONDITION PRECEDENT:

The Spanish Portfolio €53.5m loan matures December 2026 — the nearest maturity in the debt stack ahead of the Decathlon Portfolio (Jul 2027) and the Green Notes on Berlin Campus (May 2028). The Manager telegraphs that refinancing is targeted to be 'finalised in 2H2026, upon fulfilling certain conditions set out by the incumbent bank.' The €10.0m partial loan repayment for the Spanish Portfolio that landed in March 2026 — disclosed as a key condition for the loan extension to Dec 2029 — is the first of those conditions executed. This is a working refinancing, not a stalled one, but the timing is tight against the Berlin Phase 2 anchor decision (also targeted by 3Q2026) and the September-2026 cost-of-debt picture, all of which compress into a 2H2026 capital-management window. Weighted average debt maturity is 2.5 years, down from 2.7 years at Dec-2025 — the German Portfolio extension to Jul-2029 is the long tail in the stack, and the rest of the book is still rolling forward on shorter durations.

5. THE 0.47x P/NAV DISCOUNT IS PRICING THE BERLIN OVERHANG AND THE COST-OF-DEBT STEP — BOTH READS ARE VALID:

IREIT closed 31 March 2026 at S$0.235, implying a market cap of S$316.0m, price-to-NAV of 0.47x against NAV per unit of €0.34 at 31 December 2025, and a 6.9% DPU yield on FY2025 distribution of €1.09 cents. A 0.47x P/NAV is among the deepest discounts in the S-REIT universe — comparable to the most distressed pockets of US-office S-REITs in the 2023-24 cycle. Sympathetic read: the discount more-than-prices Berlin (which is being repositioned, not impaired), the post-refinancing cost of debt (which is now in the run-rate), and the FX translation risk of EUR-denominated income reported in SGD; if Phase 2 anchors and the Spanish refinancing closes cleanly in 2H2026, the optionality on a re-rating is real. Skeptical read: 0.47x is also what the market pays when it is uncertain whether the distribution can sustain through the cost-of-debt transition, the Berlin Phase 2 capex draw, and a 2.5-year weighted average debt maturity rolling against a higher-rate funding environment. ICR at 2.3x is comfortable but not generous, and a meaningful Berlin Phase 2 commitment will draw on the ringfenced facilities and lift gearing further into the late-2027 window when the asset is delivered but not yet stabilised. Neither read is unambiguously correct at 1Q2026 — the deciding variables (Phase 2 anchor by 3Q2026, Spanish refinancing close by 2H2026, full-year 2026 finance cost run-rate) all resolve over the next two to three quarters.

IREIT's joint sponsors are Tikehau Capital and City Developments Limited, both providing the €12.5m CDL-linked loan facility ringfenced for Berlin Campus. The portfolio remains a pure-play Western Europe S-REIT — Germany 59% / France 25% / Spain 16% by valuation — investing in office (75%) and retail (25%) assets, with the Berlin Campus repositioning adding hospitality to the asset-mix once Phase 1 completes August 2027. The €798.1m portfolio anchors against blue-chip tenants Deutsche Telekom (17.7% of GRI), Decathlon (20.8%), B&M (17.4%), ST Microelectronics (3.7%), and Allianz Handwerker Services (3.8%) — a tenant credit profile that supports the 8.3-year new-lease WAULT and the 100% rents-paid disclosure. Macro framing in the Looking Ahead section reads as cautiously constructive: 'The European real estate market has shown cautious but sustained improvement in its investment and letting activities… driven by supportive economic conditions and monetary policies of varying momentum across countries.'

IREIT 1Q2026 is the operating quarter that confirms the German leasing strategy is working — Darmstadt Campus has lifted from 43% to 71% occupancy in fifteen months, the French portfolio is fully let, Spain is filling, and the new-lease WAULT is 8.3 years. The structural read is that the German Portfolio refinancing has now arrived in the cost-of-debt run-rate, lifting weighted average interest from 2.8% to 4.1% in a single quarter and dropping ICR to 2.3x. Three variables resolve the next twelve months: (1) the Phase 2 office anchor commitment at Berlin Campus targeted by 3Q2026, which will size the Phase 2 capex draw and trigger the 'strategic and funding options' the Manager flagged; (2) the Spanish Portfolio refinancing close in 2H2026, the next maturity in the stack at €53.5m / Dec-2026; (3) the full-year 2026 finance-cost run-rate against the FY2025 €1.09-cent DPU baseline, which will determine whether the 6.9% yield holds. At 0.47x P/NAV, the market is already pricing the worst case on all three; the optionality is in execution.