- ESR-LOGOS REIT (SGX:J91U)’s 2H23 DPU of S$0.01186 fell 14% h-o-h and 23% y-o-y. FY23 DPU of S$0.02564 is ~5% ahead of our estimate, while FY23 revenue of S$386.4m and NPI of S$273.2m are in line.
- - Read this at SGinvestors.io -
Higher occupancy
- Occupancy inched up 2.5ppt in 4Q23 to 92.8%, taking its occupancy rate back to the 12-month average of ~92%. The higher occupancy was led by the Singapore portfolio (+3.2ppt).
- ESR-LOGOS REIT achieved 11.1% rental reversions for FY23, with its Australia portfolio (+15.6%) leading the charge. In 4Q23 strong double-digit rental reversions saw some pushback from tenants, and rents rose ~7-9% for logistics, hi-spec and industrial assets.
Scaling up in Japan
- - Read this at SGinvestors.io -
- ESR Japan Income Fund holds 5 assets across Tokyo, Osaka and Nagoya. ESR-LOGOS REIT is ready to acquire more assets with existing dry powder of S$600m.
- ESR-LOGOS REIT is also looking for acquisition opportunities among its sponsor’s other income funds or standalone assets in Singapore and Japan. Potential deals are likely to take place in early 2HFY24.
Ample dry powder; EFR unlikely.
- Read more at SGinvestors.io.
