IREIT Global : Press Release (192 KB)

IREIT Global Group Pte. Ltd.

(as Manager of IREIT Global)

1 Wallich Street #15-03 Guoco Tower Singapore 078881 Main (65) 6718 0590 www.ireitglobal.com

Media Release

IREIT reports distribution per unit of 0.93 € cents, while maintaining a healthy aggregate leverage of 33.1%

• 1H2023 income to be distributed fell by 24.3% on higher portfolio vacancy, one-off rent- free period, higher property operating expenses, higher finance and tax costs
• Proposed acquisition of a portfolio of 17 retail properties located across France to further diversify into the resilient Retail Parks (Out-of-Town) asset class, and enhance
  IREIT's portfolio lease profile and income resiliency
• Oversubscription in IREIT's preferential offering intended for partially funding the proposed acquisition showcases the support and confidence from all Unitholders
• Portfolio performance to improve after the temporary effects from rent-free period and higher portfolio vacancy, and with completion of proposed acquisition

SINGAPORE | 3 AUGUST 2023

For immediate release

IREIT Global ("IREIT"), a Europe-focused real estate investment trust managed by IREIT Global Group Pte. Ltd. (the "Manager"), is pleased to report the financial results for the first half year ended 30 June 2023 ("1H2023").

Half Year Ended 30 June 2023

	1H2023	1H2022	Variance (%)
Gross revenue (€ '000)	28,428	30,070	(5.5)
Net property income (€ '000)	21,965	24,435	(10.1)
Income to be distributed to Unitholders (€ '000) (1)	12,419	16,410	(24.3)

1. The income to be distributed to Unitholders has taken into account the retention of 10% of income for working capital and capital expenditure.

Joint Sponsors of IREIT Global:

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IREIT Global Group Pte. Ltd.

(as Manager of IREIT Global)

		1 Wallich Street
		#15-03 Guoco Tower
		Singapore 078881
		Main (65) 6718 0590
		www.ireitglobal.com
Media Release
Distribution per Unit	1H2023	1H2022	Variance (%)
- Based on total issued Units as at 30 June 2023	1.07 (2)	1.41 (2)	(24.1)
(€ cents)
- Based on total enlarged Units following the	0.93 (3)	1.22 (4)	(23.8)
Preferential Offering on 19 July 2023 (€ cents)

Gross revenue for 1H2023 decreased by 5.5% year-on-year to €28.4 million, mainly due to the decrease in rental income and carpark income from the vacancy in Darmstadt Campus, and one-offrent-free period in Bonn Campus, Münster Campus and Sant Cugat Green, partially offset by the increase in CPI indexation. Net property income was impacted by higher property operating expenses, while income to be distributed to Unitholders was lower due to higher finance costs and tax expenses. As a result, net property income and income to be distributed to Unitholders for 1H2023 decreased by 10.1% and 24.3% year-on-year to €22.0 million and €12.4 million, respectively. The full vacancy at Darmstadt Campus and rent- free period, both of which were temporary in nature, had caused an impact of €3.4 million and €1.4 million, respectively, to the income to be distributed to Unitholders. Distribution per unit ("DPU") was in turn down by 23.8% year-on-year to 0.93 € cents. (5) Based on the closing unit price of S$0.44 as at 30 June 2022, 1H2023 DPU translates to an annualised distribution yield of 6.2%. (6)

With high inflation rates, tighter lending conditions and uncertain macroeconomic conditions continuing to impact the European real estate market and capitalisation rates, IREIT's properties saw a broad-based decline in their independent valuations, resulting in a 2.9% decline in the portfolio valuation to €922.7 million as at 30 June 2023 from €950.5 million as at 31 December 2022. On a positive note, the valuations of Sant Cugat Green and Darmstadt Campus increased over the period, supported by the 12-year new lease signed with a data

1. DPU of 1.07 € cents for 1H 2023 and 1.41 € cents for 1H2022 was computed based on the total issued Units as at 30 June 2023 and 30 June 2022 of 1,155,891,421.
2. 1H2023 DPU of 0.93 € cents payable to Unitholders on 31 August 2023, was computed based on income to be distributed to
   Unitholders for 1H2023 over the total issued Units of 1,341,989,939, which was an aggregate of 1,155,891,421 Units issued as at 30 June 2023 and new Units of 186,098,518 in relation to the Preferential Offering announced on 19 June 2023. The Preferential Offering Units were issued and listed on 19 July 2023.
3. 1H2022 DPU of 1.22 € cents were restated to reflect the effects of the new Preferential Offering Units.
4. 1H2023 DPU of 0.93 € cents payable to Unitholders on 31 August 2023, was computed based on income to be distributed to
   Unitholders for 1H2023 over the total issued Units of 1,341,989,939, which was an aggregate of 1,155,891,421 Units issued as at 30 June 2023 and new Units of 186,098,518 in relation to the Preferential Offering announced on 19 June 2023. The Preferential
   Offering Units were issued and listed on 19 July 2023. 1H2022 DPU of 1.22 € cents were restated to reflect the effects of the new Preferential Offering Units.
5. Based on S$1.4739 per € as at 30 June 2023 as extracted from MAS website.

Joint Sponsors of IREIT Global:

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IREIT Global Group Pte. Ltd.

(as Manager of IREIT Global)

1 Wallich Street #15-03 Guoco Tower Singapore 078881 Main (65) 6718 0590 www.ireitglobal.com

Media Release

centre operator in June 2022 and 15-year new lease signed with German federal government body in April 2023, respectively. Due to the latter lease committed at Darmstadt Campus, IREIT's overall occupancy rate improved to 88.7% as at 30 June 2023 from 87.0% in the prior quarter, but was still down from 95.0% a year ago as Darmstadt Campus became vacant since December 2022.

Mr Louis d'Estienne d'Orves, Chief Executive Officer of the Manager, said, "The European real estate market is still expected to remain challenging due to the weak economic environment. The departure of the large single tenant at Darmstadt Campus at end-November 2022 has highlighted the importance of active asset management and diversification in IREIT's portfolio. Despite the weak economic backdrop, we have successfully secured a six-month lease extension in July 2023 with the main tenant, Deutsche Rentenversicherung Bund ("DRV"), at Berlin Campus, bringing its lease expiry to 31 December 2024. In addition, DRV will pay a revised rent that is approximately 45% higher than its current office rent from 1 July 2024 onwards."

In July 2023, the Manager also signed one new lease at Sant Cugat Green and one replacement lease at Parc Cugat. Another new lease is expected to be signed in Delta Nova IV in due course. This would bring the Spanish Portfolio's occupancy rate to 79.7% from 78.7% achieved as at 30 June 2023.

On the investment front, IREIT had announced in June 2023 the proposed acquisition of a portfolio of 17 retail properties located across France that is fully let to B&M Group, a leading discount retailer in Europe ("B&M Portfolio Acquisition"). In July 2023, IREIT launched an equity fund raising via preferential offering to raise gross proceeds of approximately S$75.9 million, which will be mainly used to fund the B&M Portfolio Acquisition. The preferential offering was 134.7% subscribed, showcasing the support and confidence from all Unitholders, including Joint Sponsors Tikehau Capital and City Developments Limited. With Unitholders' approval on the B&M Portfolio Acquisition on 27 July 2023, the transaction is currently expected to be completed by the third quarter of 2023.

"Post the B&M Portfolio Acquisition, IREIT will continue to maintain a healthy aggregate leverage of 34.2% compared to 33.1% as at 30 June 2023. This is well below the aggregate leverage regulatory limit of 50%, providing it with ample debt headroom for future growth opportunities. The enlarged portfolio will also see a diversification into the resilient Retail Parks (Out-of-Town) asset class, thereby enhancing IREIT's portfolio lease profile and income resiliency. Together with the leasing progress made and the end of temporary rent-free

Joint Sponsors of IREIT Global:

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IREIT Global Group Pte. Ltd.

(as Manager of IREIT Global)

1 Wallich Street #15-03 Guoco Tower Singapore 078881 Main (65) 6718 0590 www.ireitglobal.com

Media Release

period granted to tenants, our financial performance is set to improve," added Mr Louis d'Estienne d'Orves.

ABOUT IREIT GLOBAL

www.ireitglobal.com | SGX Main Board Listing

IREIT Global (SGX-UD1U) which was listed on 13 August 2014, is the first Singapore-listed real estate investment trust with the investment strategy of principally investing, directly or indirectly, in a portfolio of income-producing real estate in Europe which is used primarily for office, retail and industrial (including logistics) purposes, as well as real estate-related assets.

IREIT Global's current portfolio comprises five freehold office properties in Germany, five freehold office properties in Spain and 27 freehold retail properties in France.

IREIT Global is managed by IREIT Global Group Pte. Ltd. (the "Manager"), which is jointly owned by Tikehau Capital and City Developments Limited ("CDL"). Tikehau Capital is global alternative asset management group listed in France, while CDL is a leading global real estate company listed in Singapore.

ABOUT TIKEHAU CAPITAL

www.tikehaucapital.com | Paris Euronext, Compartment A Listing

Tikehau Capital is a global alternative asset management group with €40.5 billion of assets under management as at 30 June 2023. Tikehau Capital has developed a wide range of expertise across four asset classes (private debt, real assets, private equity and capital markets strategies) as well as multi-asset and special opportunities strategies. Tikehau Capital is a founder led team with a differentiated business model, a strong balance sheet, proprietary global deal flow and a track record of backing high quality companies and executives.

Deeply rooted in the real economy, Tikehau Capital provides bespoke and innovative alternative financing solutions to companies it invests in and seeks to create long-term value

Joint Sponsors of IREIT Global:

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IREIT Global Group Pte. Ltd.

(as Manager of IREIT Global)

1 Wallich Street #15-03 Guoco Tower Singapore 078881 Main (65) 6718 0590 www.ireitglobal.com

Media Release

for its investors, while generating positive impacts on society. Leveraging its strong equity base (€3.1 billion of shareholders' equity as at 30 June 2023), the firm invests its own capital alongside its investor-clients within each of its strategies.

Controlled by its managers alongside leading institutional partners, Tikehau Capital is guided by a strong entrepreneurial spirit and DNA, shared by its 742 employees across its 15 offices in Europe, the Middle East, Asia and North America. Tikehau Capital is listed in compartment A of the regulated Euronext Paris market (ISIN code: FR0013230612; Ticker: TKO.FP).

ABOUT CITY DEVELOPMENTS LIMITED

www.cdl.com.sg | SGX Main Board Listing

City Developments Limited ("CDL") is a leading global real estate company with a network spanning 143 locations in 28 countries and regions. Listed on the Singapore Exchange, CDL is one of the largest companies by market capitalisation. Its income-stable and geographically diverse portfolio comprises residences, offices, hotels, serviced apartments, student accommodation, retail malls and integrated developments.

With a proven track record of 60 years in real estate development, investment and management, CDL has developed over 50,000 homes and owns around 21 million square feet of gross floor area in residential for lease, commercial and hospitality assets globally.

Along with its wholly-owned hotel subsidiary, Millennium & Copthorne Hotels Limited, CDL has over 150 hotels worldwide, many in key gateway cities.

FOR FURTHER ENQUIRIES

Head of Investor Relations and Capital Markets

Mr Kevin Tan

1. 6718 0593 [e-mail]

Joint Sponsors of IREIT Global:

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