ESR-Reit H1 DPU inches up 0.2% to S$0.11239

ESR Real Estate Investment Trust (ESR-Reit) posted a 0.2 per cent rise in distribution per unit (DPU) to S$0.11239 for the first half ended Jun 30, from S$0.1122 in the corresponding year-ago period.

This was in light of the acquisitions of the 100 per cent trust beneficiary interest in ESR Yatomi Kisosaki Distribution Centre and 51 per cent interest in 20 Tuas South Avenue 14 completed in November 2024, partially offset by additional funding drawn to finance them, said the Reit manager on Tuesday (Jul 29).

Core DPU, as highlighted by the manager, also increased to S$0.10765 in H1 FY2025 from S$0.0996 in the same period the year before. It accounts for 96 per cent of total DPU.

The distribution will be paid out on Sep 12, after the record date of Aug 6.

Distributable income for the period was up 4.5 per cent at S$90.1 million, from S$86.3 million in H1 FY2024.

Net property income rose 30.1 per cent to S$166.3 million, from S$127.8 million in H1 FY2024.

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Revenue for the half-year period increased 23.2 per cent to S$222.9 million from S$180.9 million.

These were due to contributions from the acquisitions of ESR Yatomi Kisosaki Distribution Centre and 20 Tuas South Avenue 14, as well as from 7002 Ang Mo Kio Avenue 5 and 21B Senoko Loop, which completed their asset enhancement initiatives (AEIs) in Q3 2023 and Q1 2024, respectively, said the manager.

Adrian Chui, chief executive and executive director of the manager of ESR-Reit, said: “Our strategic focus remains on driving core organic growth by enhancing asset performance, completing ongoing AEIs and streamlining operations.

“In line with this focus, growth through acquisitions and new equity issuance will take a back seat as we concentrate on strengthening and optimising our core portfolio. We will continue to rationalise our asset portfolio with divestment of non-core assets and redeploying the proceeds to AEIs, unit buybacks and sustainability efforts.”

Units of ESR-Reit closed on Monday 1.9 per cent or S$0.05 higher at S$2.64.