“Although challenging business conditions continue to bring about a slowdown in the industrial property market, we are establishing the foundation for ESR-REIT’s next stage of development by employing a proactive asset and lease management strategy and exercising a prudent capital and risk management approach to our business. In doing so, we remain committed towards unlocking value for our Unitholders and ensuring that we are well-positioned to capitalise on any market upside.”
Mr. Adrian Chui, CEO
- Gross Revenue of S$27.7 million, Net Property Income of S$19.2 million and Distribution Per Unit of 0.956 cents
- Continued focus on employing proactive asset and lease management and prudent capital and risk management
- Leases due for renewal in FY2017 currently at only 14.8% of rental income
- Further alignment with Sponsor e-Shang Redwood Limited with name change to ESR-REIT
ESR Funds Management (S) Limited, the Manager (“Manager”) of ESR-REIT, today announced Gross Revenue of S$27.7 million for the second quarter ended 30 June 2017 (“2Q2017”), a marginal decrease of 2.2% from a year ago (“2Q2016”). Net Property Income (“NPI”) decreased 9.2% to S$19.2 million due mainly to loss of revenue and resultant property operating expenses during the conversion of properties from single- tenanted to multi-tenanted, higher maintenance costs and property divestments in FY2016.
Amount available for distribution for 2Q2017 was S$12.5 million, which translates to a Distribution Per Unit (“DPU”) of 0.956 cents for 2Q2017.