IREIT Global net property income tumbles 38.7% on Berlin vacancy

Kalynskye Adrian

/ EdgeProp Singapore

February 27, 2026 6:24 PM SGT

kalynskye.adrian@edgeprop.sg

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Berlin Campus, which has been vacant since Jan 1, 2025, will undergo repositioning by IREIT Global. (Photo: IREIT)

Amid the ongoing repositioning of the Berlin Campus property in Germany, Europe-focused IREIT Global posted a 33.3% drop in gross revenue to EUR50.4 million ($75.3 million) for 2025, and a 38.7% decrease in net property income to EUR32.8 million.

This was mainly due to the vacancy at Berlin Campus, previously a single-tenant single-use office asset, with effect from Jan 1, 2025, and the absence of other income from dilapidation cost recovered from the property’s main tenant.

On the repositioning of Berlin Campus, construction works for the hospitality segments have been progressing well, said the manager of IREIT, which focuses on office, retail, industrial and hospitality assets in Europe. The first phase of the repositioning project is slated to complete in 2Q2027.

Funding for this phase has largely been secured through the issuance of $85 million in green bonds, a EUR20 million facility, and a EUR12.5 million shareholder loan from IREIT’s joint sponsor, City Developments.

The REIT manager is also in discussions with two potential office tenants to secure a lease commitment for a substantial portion of the office space at Berlin Campus by 2Q2026, which will involve launching capital expenditure for the second phase.

Excluding Berlin Campus, portfolio occupancy rate improved to 89.4% as at end-2025, up from 88.5% a year ago. This reflects the manager’s active asset management and leasing efforts to upkeep IREIT’s portfolio properties, diversify its tenant mix, and improve its portfolio occupancy and yield. Occupancy rate would be 72.7% as at end-2025 if including Berlin Campus.

The REIT’s French portfolio saw rents going up by 4%, driven mainly by inflation-indexed adjustments.

In Germany, a new 10-year lease with a federal tenant at Darmstadt Campus, secured in the first quarter of 2026, is expected to raise occupancy at the property from 41.3% to nearly 60%.

Peter Viens, chief executive officer of the REIT manager, commented: “We are pleased with the sustained leasing traction at our German and Spanish portfolios, and the strong performance at our French portfolio.”

Distribution per unit (DPU) fell 42.6% y-o-y to 1.09 euro cents for 2025, from 1.90 euro cents in 2024

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