ESR Reit’s Q3 net property income drops, but distributable income rises
Revenue fell 1.5 per cent to S$329.6 million, with the manager citing property disposals as the main reason for the decline.
ESR Real Estate Investment Trust reported net property income of S$237.5 million for the quarter ending September 30, a year-on-year decrease of 4.2 per cent. Distributable income moved in the opposite direction, rising 1 per cent to S$136 million.
The manager’s October 27 update attributed the declines in revenue and net property income mainly to 12 non-core property disposals across FY2025 and the first nine months of 2026. Increased rents from lease renewals and new agreements provided a partial offset, alongside income following asset enhancement work at 29 Tai Seng Street.
Excluding those disposals and six Australian logistics properties acquired in September 2026, same-store revenue advanced 1.8 per cent to S$308.5 million. Same-store net property income nevertheless declined 1 per cent to S$223.3 million, as higher utility bills and property taxes outweighed the rental gains.
Core distributable income rose 1.5 per cent. The manager linked that increase to higher income from Australian property funds and reduced borrowing costs, reflecting lower base rates and the use of divestment proceeds to repay debt. Lower net property income partly countered those benefits.
Reduced distributions of other gains limited growth in total distributable income, which compared with S$134.6 million a year earlier. Operating core earnings made up 98 per cent of the total, against 97 per cent in the corresponding period.
