- Following a successful merger in April 2022, ESR-REIT (SGX:J91U) is now the fifth-largest industrial S-REIT with a total asset base of ~S$5bn, but its share price has yet to re-rate.
- - Read this at SGinvestors.io -
Revenues and NPI were lower y-o-y due mainly to divestments.
- ESR-REIT's revenues and net property income (NPI) declined by 4.1% and 4.2% y-o-y, respectively, primarily due to the divestment of assets worth ~S$535mil over the past two years. Additionally, the decommissioning of 2 Fishery Port Road for redevelopment contributed to the reduction in revenue.
- Although ESR-REIT also successfully acquired a 51% stake in 20 Tuas South Avenue 14 and the ESR Yatomi Kisosaki property in Japan, the properties were completed only in November 2024, resulting in just one month of income contribution for the fiscal year.
FY24 DPU of 2.119 cents came in below our estimates.
- - Read this at SGinvestors.io -
- The timing difference between the equity fundraising exercise and the completion of acquisitions further impacted earnings in FY24, leading to some drag on DPU. As a result, earnings for the period missed our projections by around 6%.
Healthy positive rental reversions of +10.3% in FY24.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Dale LAI DBS Group Research | Derek TAN DBS Group Research | https://www.dbs.com/insightsdirect/ 2025-01-27
