- ESR REIT’s 2H/FY25 results were broadly in line. A key highlight has been its active portfolio rejuvenation, with ~S$1bn in divestments announced over the last three years, and a partial redeployment of proceeds in overseas (freehold) and longer land tenure assets.
- - Read this at SGinvestors.io -
Active portfolio rebalancing to mitigate lease decay impact
- Active portfolio rebalancing to mitigate lease decay impact, with ~S$455m worth of divestments announced since the beginning of FY25 at a slight ~2% premium to valuation. Bulk of the divestments came from shorter land-lease Singapore industrial assets and its currently vacant hotel asset (non-core).
- - Read this at SGinvestors.io -
- Pro-forma gearing (post divestment) is expected to fall to a comfortable 38.5% (FY25: 43.4%), with targeted bite-sized acquisitions likely later this year from Singapore and Japan.
- Over the next five years, ESR REIT expects to grow its portfolio AUM by ~50% with an 8-10% total unitholder return target.
FY26 rent reversion guidance of positive mid-single digits
- Read more at SGinvestors.io.
Above is an excerpt from a report by RHB Securities Research.
Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2026-02-05
Read also RHB's most recent report:
2026-06-30 ESR-REIT - Shifting From Scale To Stability.
Price targets by other brokers at ESR REIT Target Prices.
Listing of research reports at ESR REIT Analyst Reports.
Relevant links:
ESR REIT Share Price History,
ESR REIT Announcements,
ESR REIT Dividend Payout Dates & Corporate Actions,
ESR REIT News
