SINGAPORE (Oct 26): ESR-REIT announced that its DPU for 3Q18 has increased by 4.1% to 1.004 cents compared to 0.964 cents in 3Q17.
Amount available for distribution grew by 26.0% to $15.9 million from $12.6 million in the previous year.
Gross revenue for the quarter was 19.4% higher at $32.4 million, as compared to $27.1 million a year ago, attributed to the contributions from two acquisitions at 8 Tuas South Lane and 7000 Ang Mo Kio Avenue 5 (7000 AMK) acquired in Dec 2017.
This was partially offset by revenue reduction from the master lease conversion of property at 16 Tai Seng and 21B Senoko Loop to multi-tenancy, lease expiring at several properties and the absence of revenue from four divestments completed since 3Q17.
Property expense increased by 30.8% y-o-y to $9.81 million, bringing net property income for 3Q18 to $22.5 million, 15.0% higher than $19.6 million in 3Q17.
ESR-REIT has completed its merger by way of a trust scheme of arrangement with Viva Industrial Trust (VIT) on Oct 15.
Following the completion of the merger, ESR-REIT has a 56 properties across Singapore in its portfolio, with a total gross floor area (GFA) of about 13.6 million sq ft and a property value of $2.94 billion.
Adrian Chui, CEO and executive director of ESR Funds Management says, “The completion of this transformational deal has strengthened ESR-REIT’s market position and our focus is now on integrating the two portfolios to ensure Unitholders will reap the synergies and growth opportunities from the merger of these two complimentary REITS and management skill sets.”
Meanwhile, the REIT has targeted three growth areas as its strategy to deliver returns to unitholders and further enhance the REIT’s portfolio: operational synergies and economies of scale via the integration of an enlarged portfolio, flexibility to accelerate Asset Enhancement Initiatives (AEI) to optimise value of assets and value-enhancing asset acquisitions.
As at 4.25pm, units in ESR-REIT are trading 1 cent higher at 49 cents.
