ESR-REIT scrutinises portfolio for organic growth as DPU rises 4.7% in 2Q

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Warburg Pincus-backed ESR-REIT has reported a distribution per unit (DPU) of 1.001 Singapore cents for its 2Q 2018, an increase of 4.7% year-on-year from the 0.956 cents achieved in the corresponding period of 2017.

The REIT’s gross revenue for the period by 17.6% to SGD32.5 million (USD23.6 million), while net property income (NPI) rose 22.0% year-on-year to SGD23.4 million.

ESR-REIT has attributed these increases mainly to full-quarter contributions from 8 Tuas South Lane, and 7000 Ang Mo Kio Avenue 5, two properties which were acquired in December 2017.

“Although the operating environment for the industrial sector remains highly-competitive, we are pleased that recent acquisitions of quality assets as well as from the distributions from other gains from past divestments recorded in this quarter, have enabled us to record an increase in DPU for 2Q 2018”, said Adrian Chui, CEO of the REIT’s manager.

Accordingly, distributable income for the period was boosted by 26.4% to SGD15.8 million.

In 2Q 2018, the REIT’s portfolio occupancy grew 0.7% quarter- on-quarter to 91.4%, while its portfolio weighted average lease expiry (WALE) improved to 4.5 years, from the 4.4 years recorded in the last quarter.

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