Gross revenue for the nine months ended Sept 30 grew by 22.7% y-o-y to $334.5 million, mainly due to contributions from ESR Yatomi Kisosaki Distribution Centre and 20 Tuas South Ave 14 for the full period. Both properties were acquired in November 2024.
Net property income (NPI) was up by 28.6% y-o-y to $247.8 million for the same reasons.
While core distributable income rose by 12.5% y-o-y to $130.6 million, total distributable income was offset by additional funding for the acquisitions and lower capital gains distribution on a y-o-y basis.
As at Sept 30, the REIT has an occupancy rate of 90.3%, down from 91.3% as at the same period last year.
Portfolio weighted average lease expiry (WALE) stood at 4.1 years by rental income, up from 3.2 years as at Sept 30, 2024.
During the period, the REIT saw positive rental reversion of 8.4%, up from last year’s 11%.
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Gearing as at Sept 30 stood at 43.3% while interest coverage ratio stood at 2.4 times.
ESR-REIT's net asset value (NAV) per unit stood at $2.61 as at Sept 30.
'BBB' rating from Fitch
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On the same day, ESR-REIT announced that Fitch Ratings has assigned the REIT a long-term issue default rating of ‘BBB’ with a stable outlook.
ESR-REIT’s outstanding $125 million and $100 million unsecured unsubordinated notes due in August 2026 and February 2030 were also assigned ‘BBB’ long-term ratings.
“We are delighted to receive Fitch’s ‘BBB’ rating with a stable outlook for ESR-REIT, a strong validation of our resilient business model and disciplined capital management,” says Adrian Chui, CEO and executive director of the manager. “We remain committed to delivering long-term value to our stakeholders and investors while maintaining a prudent approach to risk management.”
As at 9.12am, units in ESR-REIT are trading 1 cent lower or 0.35% down at $2.88.
