Last week, ESR-REIT (SGX: J91U) released its 2018 third-quarter earnings update. As a quick introduction, ESR-REIT invests in industrial real estate, and currently has a portfolio of 56 properties located across Singapore.
Here are 10 things investors should know about ESR-REIT’s latest results:
1. Gross revenue for the reporting quarter grew by 19.4% year-on-year to S$32.4 million while net property income improved by 15.0% to S$22.5 million.
2. Similarly, distribution per unit (DPU) grew by 4.1% to 1.004 cents.
3. Based on ESR-REIT’s annualised DPU of 3.803 cents and its unit price of S$0.48 (as of the time of writing), the REIT has a trailing distribution yield of 7.9%.
4. As of 30 September 2018, the REIT’s gearing stood at 30.3%, which is a safe distance from the regulatory ceiling of 45%.
5. The REIT’s portfolio had a committed occupancy rate of 92.9% at the end of the quarter.
6. The weighted average lease expiry (by rental income) was at 4.4 years, as of 30 September 2018.
7. ESR-REIT’s top 10 tenants accounted for 41.7% of its rental income in the quarter, with no individual trade sector contributing more than 14.2% of the REIT’s rental income.
8. The REIT completed its acquisition of 15 Greenwich Drive, a modern four-storey ramp-up logistics facility, on 25 October 2018.
9. The merger of ESR-REIT and Viva Industrial Trust (SGX: T8B) was completed on 15 October 2018.
10. Mr Adrian Chiu, chief executive of the ESR-REIT’s manager, commented on the merger.
“The completion of this transformational deal has strengthened ESR-REIT’s market position and our focus is now on integrating the two portfolios to ensure Unitholders will reap the synergies and growth opportunities from the merger of these two complimentary REITS and management skill sets.”
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.