Wednesday, July 06, 2022

Initiated position in IREIT Global (SGX:UD1U)


After exiting from IREIT Global (SGX:UD1U) at the high of $0.80 when it announced the acquisition of Spanish office properties in 2019, I bought into 12,000 shares of IREIT Global today at $0.605.

It is not difficult to make this decision because I aim to grow my SGX income portfolio and am willing to stomach relatively higher amount of risk to own European income-producing assets.

With a book value of $0.81, IREIT Global is trading at more than 20% discount currently. Expecting an annual dividend of at least $0.044 for year 2022, it yields more than 7%.

IREIT Global's portfolio consists of 5 freehold office properties in Germany, 5 freehold office properties in Spain and 27 freehold retail properties in France - leased to Decathlon. The properties have decent high occupancy rates at 95.7% and 3.7 years of weighted average lease to expiry.

Its aggregate leverage remains healthy at 32.1% with effective interest rate at 1.8%. All bank borrowings at floating rates have been hedged with interest rate swaps and caps.

It should be announcing the dividends for first half of 2022 next month soon and I shall be happy to join in the dividend-collecting party.

Thanks for reading. As always, stay focused and invest safe.

With Love & Peace,

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