IREIT Global FY2025: DPU -42.6% to €1.09¢ as Berlin Campus Goes Dark; Repositioning and Green Notes Mark New Chapter

IREIT Global FY2025 (year ended 31 December 2025) was defined by a single structural event: the full vacancy of Berlin Campus from 1 January 2025 following the expiry of Deutsche Rentenversicherung Bund's (DRV) long-term lease. The income hole — Berlin contributed ~25% of FY2024 gross revenue — drove headline metrics sharply lower across the board, while proactive capital management and bright spots in France and Spain signal the foundations for recovery.

Gross Revenue fell 33.3% to €50.4M (FY2024: €75.6M). Net Property Income (NPI) declined 38.7% to €32.8M (FY2024: €53.5M). Distributable Income dropped 42.7% to €14.7M. DPU: €1.09 cents (-42.6% from FY2024's €1.90 cents). Portfolio Valuation: €798.1M (-6.9% from €857.3M). NAV/Unit: €0.34 (FY2024: €0.39; -12.8%). Total Assets: €926.3M (-3.6%). Aggregate Leverage: 44.6% (FY2024: 37.6%; within MAS 50% cap — debt headroom ~€49.6M). Weighted Average Interest Rate: 2.8% p.a. (FY2024: 1.9%; +90bps on higher loan margins). ICR: 2.7x (FY2024: 7.6x — compression driven by lower NPI and higher finance costs). WALE: 5.6 years (FY2024: 5.9 years).

Berlin Campus (79,097 sqm NLA; 0% occupied) is the central challenge and opportunity. DRV departed 31 December 2024 after 30+ years of single-tenancy. The Manager is repositioning the asset into a multi-let, mixed-use development (Project RE:O), with two confirmed strategic moves: (1) Two major hospitality leases have been signed covering ~24% of NLA (Phase 1 — delivering the hospitality space); (2) Construction commenced Q2 2025 following unitholder approval and receipt of building permit. Office space (Phase 2) is in active discussions with several potential tenants, targeting a lease commitment by 3Q2026. Valuation declined to €195.8M (FY2024: €230.8M; -15.1%) — the steepest devaluation in the portfolio — reflecting zero income during the repositioning phase and broader Berlin office market softness (vacancy rate ~8.2%; large-space transactions scarce). Capital management: S$85M inaugural fixed-rate green notes issued 22 May 2025 (capex facility for Berlin repositioning); German Portfolio debt refinanced October 2025 to July 2029 (extending maturity from January 2026). Spanish Portfolio refinancing ongoing — expected H2 2026.

Concor Park (Munich Ismaning, 31,412 sqm, 96.9% occupied) suffered the most severe valuation correction in the German office portfolio, down 27.4% to €58.7M (FY2024: €80.9M). Despite near-full occupancy, Munich's office investment market has undergone significant cap rate expansion — transaction volume in Munich fell 38% YoY in Q1-Q3 2025, and prime yields compressed to 4.05%. The devaluation is a market-driven repricing rather than an operational issue; income remained stable at €5.2M GRI.

IREIT's 44 French retail properties (27 Decathlon + 17 B&M) continue to deliver 100% occupancy and predictable income, contributing ~49.5% of NPI. Decathlon Portfolio val €122.0M; B&M Portfolio val €78.7M (+2.2%). All 44 assets achieved BREEAM In-Use certification during FY2025 — a green credentials milestone. The French retail segment is the income cushion absorbing Berlin's revenue absence.

The four Spanish office assets showed mixed but generally improving momentum. Parc Cugat Green (Barcelona) was the standout: occupancy surged from 64.0% to 91.3% following significant new leasing — a prominent growing Spanish company signed for a substantial portion of space. Sant Cugat Green occ improved from 70.4% to 76.6% (1,660 sqm expansion). Delta Nova IV (Madrid) declined from 89.8% to 61.4% — the one negative outlier in Spain; tenant departures resulted in meaningful vacancy, partially offset by a longer WALE (5.8yr). Delta Nova VI improved from 86.0% to 88.4%. Combined Spanish Portfolio val: €127.1M (FY2024: €127.5M; flat).

GERMAN OFFICE (EXCL. BERLIN)

Bonn Campus (100% occ; GMG/Deutsche Telekom single tenant; WALE 3.3yr) and Münster Campus (82.3% occ; WALE 4.8yr — lease extensions secured FY2025) delivered stable contributions. Darmstadt Campus remains in recovery mode at 41.3% occ, improving slightly from 42.6%; a new federal tenant (~4,900 sqm) was signed during FY2025, raising near-term occupancy trajectory; WALE 11.2yr.

Peter Viens (CEO, first full year): S$548,784 total. Mix: 41% base salary / 13% performance bonus / 46% LTI (Tikehau Capital RSU plans — Presence Share Plan, Performance Share Plan, Retention Plan). Salary and bonus recharged to Manager by TIM. Board fees (FY2025, 100% cash): Mark Yeo (Chairman) S$113,000; Chng Lay Chew (ARC Chair) S$85,000; Cher Mui Sim Susanna (IND) S$75,000. Note: fee payment changed from 80/20 cash/units in FY2024 to 100% cash in FY2025. Non-executive NEDs (Louis d'Estienne d'Orves for Tikehau Capital; Sherman Kwek for CDL) receive nil fees. 3 KMP aggregate: S$750K–S$1M band (39% fixed / 21% bonus / 40% LTI).

Bruno de Pampelonne stepped down as Non-Executive Director (Tikehau Capital representative) effective 1 January 2025. Louis d'Estienne d'Orves (former CEO, Head of Asia-Pacific, Tikehau Capital) succeeded him as NED from 5 November 2024.

IREIT's FY2025 is a transition year defined by a known structural headwind — Berlin Campus vacancy — which the Manager anticipated and has been preparing for since the DRV departure was announced. The near-term pain (DPU -42.6%, leverage 44.6%) is manageable: the French retail portfolio anchors income stability, Spanish leasing is recovering, the German Portfolio is refinanced to 2029, and Berlin's repositioning into hospitality plus office is progressing to schedule. The critical watch items are: (1) securing an office lease commitment at Berlin by 3Q2026; (2) Spanish Portfolio refinancing completion in H2 2026; (3) Delta Nova IV occupancy recovery. A successful Berlin Phase 2 leasing outcome by mid-2026 would meaningfully change the trajectory of NAV and DPU from FY2027.