ESR-Reit H1 DPU inches up 0.2% to S$0.11239
This was in light of the acquisitions of the 100 per cent trust beneficiary interest in ESR Yatomi Kisosaki Distribution Centre and 51 per cent interest in 20 Tuas South Avenue 14 completed in November 2024, partially offset by additional funding drawn to finance them, said the Reit manager on Tuesday (Jul 29).
Core DPU, as highlighted by the manager, also increased to S$0.10765 in H1 FY2025 from S$0.0996 in the same period the year before. It accounts for 96 per cent of total DPU.
The distribution will be paid out on Sep 12, after the record date of Aug 6.
Distributable income for the period was up 4.5 per cent at S$90.1 million, from S$86.3 million in H1 FY2024.
Net property income rose 30.1 per cent to S$166.3 million, from S$127.8 million in H1 FY2024.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
Revenue for the half-year period increased 23.2 per cent to S$222.9 million from S$180.9 million.
These were due to contributions from the acquisitions of ESR Yatomi Kisosaki Distribution Centre and 20 Tuas South Avenue 14, as well as from 7002 Ang Mo Kio Avenue 5 and 21B Senoko Loop, which completed their asset enhancement initiatives (AEIs) in Q3 2023 and Q1 2024, respectively, said the manager.
Adrian Chui, chief executive and executive director of the manager of ESR-Reit, said: 'Our strategic focus remains on driving core organic growth by enhancing asset performance, completing ongoing AEIs and streamlining operations.
'In line with this focus, growth through acquisitions and new equity issuance will take a back seat as we concentrate on strengthening and optimising our core portfolio. We will continue to rationalise our asset portfolio with divestment of non-core assets and redeploying the proceeds to AEIs, unit buybacks and sustainability efforts.'
Units of ESR-Reit closed on Monday 1.9 per cent or S$0.05 higher at S$2.64.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
6 hours ago
- Business Times
Singapore sets up economic strategy review under tariff task force to take ‘fresh look' at longer-term strategies: DPM Gan
[SINGAPORE] The Republic is carrying out an economic strategy review (ESR) to look at its longer-term strategies, given the significant challenges brought by a new regime of US tariffs as well as the fraying multilateral trading system. Announcing this on Monday (Aug 4), Deputy Prime Minister Gan Kim Yong said that the review will replace one of the work streams of the Singapore Economic Resilience Taskforce (Sert) that he chairs – one that looks at developing longer-term strategies to help businesses and the workforce 'seize opportunities in the new economic landscape'. 'Even as we work on the longer-term plans, we also realise it's going to be very complex given the fast-evolving global landscape,' he said at a media briefing. 'With the tariffs changing from month to month, sometimes from day to day, it's important for us to take a comprehensive review and not rush into a conclusion of what we should do in the longer term,' he added. Asked about the work of similar economic review committees in the past and whether those recommendations are still relevant, DPM Gan said the challenges in each period are very different. 'Given the new regime of tariff structure, we are going to face challenges (to) the rules-based multilateral trading system, which is quite fundamental, since this is a system we have relied on for decades to conduct our trade and to allow our economy to develop and grow.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up He added that while tariffs on a majority of countries have been announced, two key economies – India and China – are still in negotiation. 'There are a lot of unknowns going forward, but, at the same time, while these are challenges, there are also opportunities and possibilities. Therefore it's important for us to take a fresh look at our strategy.' Fresh perspectives The ESR comprises five committees, each co-chaired by two political officeholders and comprising members from the private sector, academia and unions. In all, seven of the 10 co-chairs are first-time political officeholders. They will look into five areas: strengthening Singapore's global competitiveness; leveraging technology and innovation; nurturing entrepreneurship; enhancing human capital; and managing the impact of restructuring. The committees plan to 'engage widely' over the next few months and report their findings to Sert, with a report outlining their recommendations slated for mid-2026. These recommendations will then be submitted to the government for consideration 'at the right time', said DPM Gan. Explaining the composition of the ESR, DPM Gan said that the younger political officeholders would be looking at the issues from a different angle and would provide fresh ideas and recommendations, while Sert is composed of experienced ministers. 'The idea is to have a balance of both the experienced ones as well as the younger ones,' he noted. Committee No 1, which looks at global competitiveness, will be chaired by Acting Transport Minister and Senior Minister of State for Finance Jeffrey Siow and Senior Minister of State for Trade and Industry and Culture, Community and Youth Low Yen Ling. Committee No 2, which focuses on technology and innovation, will be chaired by Minister of State for Digital Development and Information and Education Jasmin Lau and Senior Parliamentary Secretary for Culture, Community and Youth and Sustainability and the Environment Goh Hanyan. The third committee on entrepreneurship is chaired by Minister of State for Trade and Industry and National Development Alvin Tan and Minister of State for Culture, Community and Youth and Manpower Dinesh Vasu Dash. The fourth committee on human capital is chaired by Acting Minister for Culture, Community and Youth and Senior Minister of State for Education David Neo and Senior Minister of State for Manpower and Health Koh Poh Koon. Committee No 5, which looks into managing the impact of restructuring, is chaired by Minister of State for Home Affairs and Social and Family Development Goh Pei Ming and Minister of State for Defence and deputy secretary-general of the National Trades Union Congress Desmond Choo.
Straits Times
7 hours ago
- Straits Times
A look at the five committees reviewing Singapore's economic strategy
Sign up now: Get ST's newsletters delivered to your inbox (From left) Ms Low Yen Ling, Senior Minister of State for Trade and Industry, and Culture, Community and Youth; Mr Jeffrey Siow, Acting Minister for Transport and Senior Minister of State for Finance; and DPM Gan Kim Yong at a press conference on Aug 4. SINGAPORE – A new strategy to study how Singapore can continue to thrive amid geopolitical changes like the US tariffs and technological disruptions has been formed. Deputy Prime Minister Gan Kim Yong on Aug 4 unveiled the Economic Strategy Review (ESR) , aimed at charting a forward-looking blueprint to secure quality opportunities for Singapore's businesses and workers. 'We have built up very strong fundamentals, including our very high-quality infrastructure, our highly skilled workforce, our extensive connectivity both in terms of digital connectivity as well as our trade agreements with our partners,' said DPM Gan, who also chairs the Singapore Economic Resilience Taskforce (SERT). The task force was set up in April to help businesses and workers navigate immediate uncertainties arising from the US tariffs. 'I think it is important for us to take a fresh look at building on the strengths that we have built over the years to chart the way forward,' DPM Gan said. The ESR will report to SERT and replace SERT's third work stream. It comprises five committees, each co-chaired by two political office-holders who will be joined by private sector, union and other stakeholders. They will engage widely with businesses and workers and other stakeholders and publish their recommendations by mid-2026. The five committees are: Top stories Swipe. Select. Stay informed. Singapore Singapore launches review of economic strategy to stay ahead of global shifts Business More support for sectors and workers vulnerable to tech disruptions, global competition Business Singapore to tap advanced manufacturing, AI under strategic review Singapore Strong S'pore-Australia ties underpinned by bonds that are continually renewed: President Tharman Singapore All recruits at BMTC will be trained to fly drones and counter them: Chan Chun Sing Singapore Ong Beng Seng to be sentenced on Aug 15, prosecution does not object to fine due to his poor health Singapore Pritam Singh had hoped WP would 'tip one or two more constituencies' at GE2025 Committee on Global Competitiveness Chaired by: Mr Jeffrey Siow, Acting Transport Minister and Senior Minister of State for Finance; and Ms Low Yen Ling, Senior Minister of State for Trade and Industry, and Culture, Community and Youth. This committee will strengthen Singapore's economic standing and relevance to the world with a three-pronged approach. It will improve the Republic's long-term value proposition for global investments and seize growth opportunities, as well as grow a strong base of local firms anchored in Singapore and with a global or regional footprint. It will also secure the country's future as a hub of existing and new trade flows, including of goods, capital, people, data and energy. Committee on Technology and Innovation Committee on Technology and Innovation co-chairs Goh Hanyan (left) and Jasmin Lau. ST PHOTO: AZMI ATHNI Chaired by: Ms Jasmin Lau, Minister of State for Education and Digital Development and Information; and Ms Goh Hanyan, Senior Parliamentary Secretary for Culture, Community and Youth, and Sustainability and the Environment. This committee will harness technology and innovation to drive economic growth and competitiveness for Singapore. It will focus on catalysing new economic opportunities enabled by technologies such as artificial intelligence (AI). It will also drive innovation through leading firms and talent, and accelerate AI transformation and adoption. Committee on Entrepreneurship Committee on Entrepreneurship co-chairs Dinesh Vasu Dash (left) and Alvin Tan. ST PHOTO: AZMI ATHNI Chaired by: Mr Alvin Tan, Minister of State for National Development and Trade and Industry; and Mr Dinesh Vasu Dash, Minister of State for Manpower and Culture, Community and Youth. This committee will strengthen the country's ecosystem for start-ups and entrepreneurship with recommendations to enhance the competitiveness and attractiveness of the local start-up ecosystem, and grow the Singapore core for entrepreneurship. Committee on Human Capital Committee on Human Capital co-chairs David Neo (left) and Koh Poh Koon. ST PHOTO: AZMI ATHNI Chaired by: Mr David Neo, Acting Minister for Culture, Community and Youth and Senior Minister of State for Education; and Dr Koh Poh Koon, Senior Minister of State for Manpower and Health. This committee will empower workers with the relevant skills to support career mobility and resilience, and equip them for trends such as AI disruption and the green economy. Committee on Managing Impact of Restructuring Committee on Managing Impact of Restructuring co-chairs Desmond Choo (left) and Goh Pei Ming. ST PHOTO: AZMI ATHNI Chaired by: Mr Goh Pei Ming, Minister of State for Home Affairs and Social and Family Development; and Mr Desmond Choo, Minister of State for Defence and deputy secretary-general of the National Trades Union Congress. This committee will explore recommendations to manage the impact of disruption in the economy by supporting firms in transformation and innovation, so that they can capture new opportunities in a restructured economy. It will also support workers affected by restructuring in moving into new job roles with better prospects, and help displaced workers regain employment.
Business Times
9 hours ago
- Business Times
Lendlease Global Commercial Reit to divest office component of Jem to Keppel for S$462 million
[SINGAPORE] Lendlease Global Commercial Reit will be divesting the office component of the Juong commercial-retail development Jem to Keppel for S$462 million, with the proceeds to be used to pay down debts and potentially for distribution to unitholders. In a regulatory statement published on Monday (Aug 4), the manager of the real estate investment trust (Reit) announced that the trustee entered into a put and call option agreement with the purchaser on Monday. Currently, the 12-level office space – which the Reit acquired in 2022 – is leased to the Ministry of National Development for 30 years from December 2014. Net proceeds from the divestment will be used to predominantly repay certain loans, and this is expected to reduce the Reit's aggregate leverage ratio to approximately 35 per cent on a pro forma basis from 42.6 per cent as at June 2025. The divestment could result in a net cash gain of approximately S$8.9 million, which will be available for distribution to unitholders. The manager said that key benefits of the divestment include improving the Reit's financial position, unlocking value of the office component, and increasing the Reit's focus on retail to over 85 per cent of its portfolio by valuation BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Had the divestment been completed on Jul 1, 2024, the pro forma distribution per unit (DPU) would have been S$0.0352 Singapore cents, 2.2 per cent lower than S$0.036 cents before the sale. Had the divestment been completed in end-June, 2025, the net asset value per unit would have been S$0.74, marginally lower than S$0.75 before the sale. Keppel said in a media statement that private funds under its sustainable urban renewal strategy are acquiring the office component of Jem, and the asset manager and operator will explore upgrading works to reduce the energy use intensity. Keppel's earnings per share and net tangible assets per share for the current year are not expected to be materially impacted by the acquisition, it said. Lendlease Global Commercial Reit units closed 2.7 per cent or S$0.015 higher at S$0.565 while Keppel shares closed S$0.04 or 0.5 per cent higher at S$8.35 on Monday, before this announcement.
