IREIT Global’s net property income drops 10.1% YoY to €22m in 1H23

The REIT attributed the decline to higher property operating expenses.

IREIT Global recorded a lower net property income (NPI) of €22m ($32.3m) in 1H23, its latest financial statement revealed.

Compared to 1H22, the REIT”s 1H23 NPI was 10.1% lower.

The REIT likewise recorded lower gross revenue (-5.5% YoY) and income to be distributed to Unitholders (-24.3% YoY) of €28.4m and €12.4m, respectively.

In a bourse filing, the REIT attributed the decline in its NPI to higher property operating expenses. Meanwhile, its income to be distributed to Unitholders fell due to higher finance costs and tax expenses.

“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 €922.7m ($1.35m) as at 30 June 2023 from €950.5m ($1.39m) as at 31 December 2022,” the REIT said.