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ESR-REIT sees 13.9% higher DPU of 0.754 cents for 2Q21; 14.3% higher DPU of 1.554 cents for 1H21

Felicia Tan
Felicia Tan7/23/2021 07:34 AM GMT+08  • 2 min read
ESR-REIT sees 13.9% higher DPU of 0.754 cents for 2Q21; 14.3% higher DPU of 1.554 cents for 1H21
Amount available for distribution to unitholders increased by 18.7% y-o-y to $56.8 million.
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The manager of ESR-REIT has reported distribution per unit (DPU) of 0.754 cents for the 2QFY2021 ended June, 13.9% higher than DPU of 0.662 cents in the corresponding period the year before.

This brings the REIT’s DPU for the 1HFY2021 to 1.554 cents, 14.3% higher than DPU of 1.359 cents in the 1HFY2020.

During the half-year period, gross revenue grew by 5.4% y-o-y to $119.8 million as there were no Covid-19 rental rebates provided to tenants.

Net property income (NPI) stood 8.4% higher y-o-y at $87.0 million due to the higher gross revenue and lower property expenses, which were attributable to lower utilities expenses and lower maintenance costs.

Amount available for distribution to unitholders increased by 18.7% y-o-y to $56.8 million, due to higher NPI and lower borrowing costs.

The amount is distributable over 3.65 billion units, 3.8% higher than the 3.52 units in the 1HFY2020.

The distributable amount includes management fees of $4.3 million payable to the REIT manager and property manager, compared to the $4.4 million payable in the 1HFY2020.

In the 2QFY2021, ESR-REIT reported portfolio occupancy rate of 91.7% in the 2QFY2021, higher than the 90.8% posted in the 1QFY2021.

The higher portfolio occupancy rate, which is above JTC’s average of 90.0%, was due to the completion of the REIT’s acquisition of 46A Tanjong Penjuru and an improvement in its overall portfolio occupancy.

As at June 30, the overall weighted average lease expiry (WALE) stood at 2.8 years by rental income.

See also: ESR-REIT appoints TSMP joint managing partner Yuen Thio as independent chairperson of the manager

Despite the ongoing uncertainties from the Covid-19 situation, which has impacted the completion of new industrial space to 2H2021 and 2022, the manager says it remains “cautiously optimistic” on its situation.

“Our 1HFY2021 performance reflects a relatively stable operating performance underpinned by a robust all-round execution of our business strategy, providing a strong balance sheet with significant liquidity, stability and financial resources for sustainable growth,” says Adrian Chui, CEO and executive director of the manager.

“Despite the continued uncertainties over Covid-19, our stabilised portfolio provides us with a strong platform as we will continue to pursue opportunities through asset enhancements of existing properties; value-accretive acquisitions of quality, modern and in-demand properties from our Sponsor’s visible asset pipeline; and divestment of non-core assets,” he adds.

Units in ESR-REIT closed 1 cent higher or 2.3% up at 44 cents on July 22.


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