- With the bulk of ESR-REIT’s portfolio rebalancing strategy completed, we expect it to move into an organic growth phase and start reaping the benefits from an earlier pivot into higher quality and longer land-lease assets.
- - Read this at SGinvestors.io -
Key catalysts for FY25
- Key catalysts for FY25 include a full-year accretive DPU contributions from ESR Kisosaki DC in Japan and 20 Tuas South Avenue 14, completed asset enhancements, and higher revenue from increase in service charges (~65% of for REIT’s assets) to offset rising cost pressures.
- Rent reversions (FY25) are expected to be in the 5-7% range (FY24: +10.3%) with flattish rent expectations for business parks and higher rents seen for other segments. Occupancy is expected to remain high at ~92%.
- - Read this at SGinvestors.io -
Divestments of ~S$200m
- Divestments of ~S$200m are likely expected to come mainly from Singapore assets. These include its non-core hotel asset in Changi Business Park (~S$115m valuation as at end Dec 2024), for which it is in an exclusive negotiation.
- Divestments are likely to be at or above book value. Plans for divestment proceeds include a potential redemption of S$75m of the Series 006 perps that carry a coupon of 6.632%, with the rest likely used to repay its debt.
Redevelopment of 21B Senoko Loop
- Read more at SGinvestors.io.
