IREIT's rights issue 134.7% subscribed.

Results are out.

As expected, the rights issue was oversubscribed.

At 40.8c per rights unit, it was just too cheap to ignore.

With DPU expected to be at 2.31 Euro cents, we are looking at 3.42 Singapore cents using the prevailing exchange rate.

At the moment, 1 Euro = S$1.48.

This gives a distribution yield of almost 8.4%.

This is very attractive to me, especially when I remind myself that IREIT Global retains 10% of its distributable income.

There is also the fact that IREIT Global's gearing ratio is only 33% and that almost 100% of its debt is fixed until 2026.

This gives me peace of mind.

Although its Berlin asset will see its Master Lease expiring middle of next year, I am not too worried.

This is because the office market in Berlin is relatively resilient with vacancy rate at only around 5%.

There is also the fact that IREIT Global's Berlin asset is significantly under rented and I believe it should not have great difficulty getting the lease renewed or, failing that, getting new tenants.

IREIT Global's unit price closed at 42.5c today.

At this price, the distribution yield is 8.05% which is still very attractive.

Looking at the chart, I see the declining 200 days moving average at 50 cents.

This should be the resistance to watch.

Having said that, as an investor for income, I am more interested in receiving passive income.

Although with the rights issue oversubscribed, I do not expect my application for excess rights to be fully filled, I still expect IREIT Global to continue generating meaningful income for me.

As IREIT Global was already one of my largest investments, this rights issue has served to further enlarge my investment. 

This should have an outsized impact on my passive income in future, all else being equal.

If AK can do it, so can you!

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T-bills, DBS, OCBC and IREIT.