[SINGAPORE] The manager of ESR-Reit on Tuesday (Apr 22) posted a 31.3 per cent rise in net property income (NPI) for the first quarter to S$82.5 million from S$62.9 million in the previous corresponding period.
Its Q1 revenue climbed 24.2 per cent to S$110.5 million from S$89 million previously.
The growth in NPI and revenue were attributed mainly to contributions from two properties the real estate investment trust (Reit) acquired in November 2024. The properties are ESR Yatomi Kisosaki Distribution Centre in Mie, Japan, in which ESR-Reit holds a 100 per cent trust beneficiary interest, and 20 Tuas South Avenue 14 in Singapore, in which it holds a 51 per cent stake.
Excluding the two acquisitions, the increases would have been more subdued and the Reit would have recorded a 5.3 per cent rise in NPI to S$66.3 million, and a 3.4 per cent rise in revenue to S$92 million.
Other factors that boosted NPI included the higher NPI of existing properties as well as the completion of asset enhancement initiatives (AEIs) of two high-specification industrial facilities in Singapore. These are an industrial building located at 7002 Ang Mo Kio Avenue 5, which concluded its AEI in Q3 2023, and a property at 21B Senoko Loop, which finished its AEI in Q1 2024.
Q1 distributable income was up 7 per cent on the year at S$44.2 million from S$41.3 million in the year-ago period.
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The increase was due to the acquisition of the two properties in November, but partly offset by additional funding drawn to finance the acquisitions alongside lower capital gains distribution compared with Q1 FY2024.
Net asset value per unit for the quarter was S$0.269, against S$0.311 for the year-ago period.
It registered a positive rental reversion of 8.6 per cent for the quarter, compared with 10.8 per cent in the same period last year. The manager said its occupancy rate was healthy at 91.6 per cent, largely unchanged from 91.7 per cent in Q1 FY2024. As at March 2025, its portfolio’s weighted average lease expiry stood at 4.1 years.
Its gearing stood at 41.9 per cent as at March 2025. Total debt was at S$2.2 billion, down from S$2.3 billion as at December 2024.
The manager said it has a well spread-out debt expiry profile, with no more than around 27 per cent of loans expiring each year. Moreover, its expiring 2025 loans have been refinanced ahead of time at lower margins, and there is potential for its 2026 loans to receive early refinancing without penalties.
Units of ESR-Reit closed on Monday 2.4 per cent or S$0.005 higher at S$0.21.
