- ESR REIT (SGX:9A4U)’s 3Q/9M25 financials came in slightly ahead of our expectations driven by healthy organic and inorganic income growth. Financing costs have sharply fallen year-to-date with room for further declines in FY26.
- - Read this at SGinvestors.io -
3Q/9M25 core distributable income up ~12% y-o-y
- 3Q/9M25 core distributable income up ~12% y-o-y, aided by higher NPI (+4% on a same-store basis) from positive rent reversions, lower utilities and financing costs as well as contribution from new acquisitions.
- Year-to-date, financing costs have come down ~44bps to 3.4% on the back of sharp declines in S$ rates and lower margins (~15bps) for the latest bank refinancing.
- - Read this at SGinvestors.io -
Divestment of S$200-300m likely in FY26.
- Divestment of its non-core hotel asset at ESR Bizpark @ Changi, though slightly delayed, is still progressing with ESR REIT in discussion with a few potential buyers (~S$100m).
- ESR REIT has also identified ~S$200m of shorter lease non-core Singapore industrial assets for divestments. Gearing stands at 43.3% but will drop to ~41% if the above divestments materialise.
- Year-to-date, ESR REIT has divested two assets for ~S$17m, at a 3.5% premium to their valuations.
FY25 rent reversion expected at 9-10%
- Read more at SGinvestors.io.
