Staff Reporter
Published:
Photo from Magnific
Gross revenue declined 1.5% to $329.6m, whilst distributable income rose 1%.
ESR-REIT's net property income (NPI) declined 4.2% year-on-year (YoY) to $237.5m in the first nine months, mainly due to the divestment of 12 non-core properties.
Gross revenue also fell 1.5% to $329.6m from $334.5m a year earlier, according to the REIT’s latest business update.
It said the declines were partly offset by higher rental rates from lease renewals and new leases, as well as income from the completion of asset enhancement works at 29 Tai Seng Street.
On a same-store basis, gross revenue increased 1.8% to $308.5m, whilst NPI declined 1% to $223.3m due to higher utility costs and property taxes.
Despite the lower NPI, distributable income rose 1% YoY to $136m from $134.6m, supported by lower borrowing costs and higher income from Australian property funds.
ESR-REIT recorded a positive rental reversion of 9.3%, up from 8.4% in the same period last year. This was led by the logistics and general industrial segments, which recorded rental reversions of 10% and 10.6%, respectively.
Portfolio occupancy stood at 91.7% as of the third quarter (Q3), compared with 90.3% a year earlier.
During the year, the REIT completed $472.4m worth of non-core asset divestments and acquired six freehold logistics properties in Australia for $305.4m (A$341.1m).
It also announced the divestment of two Singapore properties, 15 Gul Way and 30 Pioneer Road, for a combined $56.2m, with completion expected in Q4.
ESR-REIT is also planning to redevelop 2 Fishery Port Road into a cold storage and food processing facility, with estimated costs of $180m to $200m. Construction is expected to begin in the first half of 2027.
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