ESR-REIT singles out properties for AEIs as DPU inches up 19%

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ESR-REIT has reported a distribution per unit (DPU) of 1.007 Singapore cents for its 1Q 2019, a growth of 8.9% year-on-year.

Gross revenue for the quarter was SGD64.8 million, an increase of 92.9% year-on-year, while net property income rose 104.2% to SGD48.6 million over the same period.

Total amount available for distribution to unitholders for 1Q 2019 was SGD32.0 million, an increase of 138.8% year-on-year.

ESR-REIT has attributed the growth in NPI to contributions from the acquisition of 15 Greenwich Drive, and the 9 properties from Viva Industrial Trust’s portfolio the merger.

The leasing up of 30 Marsiling Industrial Estate Road 8, and 3 Pioneer Sector 3 also contributed to the numbers.

Portfolio occupancy for 1Q 2019 was at 92.0%, while tenant retention rate was 53.8% as at 31 March 2019.

1Q 2019 rental reversions are positive at 1.6% for 1Q 2019, an improvement from the -2.9% rental reversions for FY 2018.

As at 31 March 2019, ESR-REIT’s gearing is at 42.0%, with a weighted average debt expiry of 2.8 years.

ESR-REIT has identified up to 7 assets for asset enhancement initiatives over the next 3 years.

These include 7000 Ang Mo Kio Avenue 5, and 3 Tuas South Avenue 4, where there is unutilised plot ratio to be unlocked, said the REIT.

16 Tai Seng Street and UE BizHub EAST have also been identified to be rejuvenated, the REIT added.

ESR-REIT finished the trading day 2.0% up from its previous close on the Singapore Exchange, ending at SGD0.51.

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