Industrial property landlord ESR-REIT has reported a DPU of 0.956 Singapore cents for its 2Q 2017, a fall of 11.3% from the 1.078 cents achieved in the corresponding period of 2016.
This was after gross revenue dipped by 2.2% year-on-year to SGD27.7 million (USD20.1 million) while net property income (NPI) decreased by 9.2% to SGD19.2 million.
Correspondingly amount available for distribution for 2Q 2017 was SGD12.5 million, a fall of 11.4% from the SGD14.1 million achieved in 2Q 2016.
The REIT has attributed the set of results mainly to loss of revenue and resultant property operating expenses during the conversion of properties from single-tenanted to multi-tenanted, higher maintenance costs, and property divestments made in FY2016.
“Although challenging business conditions continue to bring about a slowdown in the industrial property market, we are establishing the foundation for ESR-REIT’s next stage of development by employing a proactive asset and lease management strategy and exercising a prudent capital and risk management approach to our business”, said Adrian Chui, CEO of the REIT’s manager.