IREIT Global (SGX: UD1U) is a real estate investment trust that has a focus on investing in office, retail, and industrial real estate in Europe. Its portfolio currently comprises five freehold commercial properties located in Germany.
Here are two things about IREIT Global’s business that investors might like.
An attractive lease expiry profile
One of the main benefits for a REIT in having long leases is that it has assurance on its future income, at least for the duration of the leases.
Here is a chart showing an overview of IREIT Global’s lease expiry profile:
Source: IREIT Global 2017 third quarter earnings presentation
We can see that IREIT Global does not have leases expiring in the next five quarters. Moreover, only 16.6% of its leases will expire from 2019 to 2021.
Barring catastrophic events (such as a severe global economic crisis), investors can expect IREIT Global’s income to be stable for the next few years.
A high distribution yield
In the first three quarters of 2017, IREIT Global had paid a total of 4.31 Singapore cents per share in distributions, giving an annualized payout of 5.75 Singapore cents.
Using the latest unit price of S$0.76 for IREIT Global, the REIT has an annualized distribution yield of 7.6%. This compares favourably to the average distribution yield of 6.4% for REITs in Singapore’s market.
Investors seeking a REIT with a high distribution yield may thus want to carry out further research on IREIT Global.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.