ESR-REIT's 8 Tuas South Lane. (Photo: ESR-REIT)

ESR-REIT has given an illustration of what might happen to its distribution per unit (DPU), should Hylux Membranes default on its rent obligations.

Hyflux Membranes is linked to embattled environmental solutions company Hyflux Limited, and occupies the REIT's premises at 8 Tuas South Lane.

It is one of ESR-REIT’s top 10 tenants, and accounted for approximately 3.5% of the REIT’s total rental income for December 2018.

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By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.