ESR-Reit DPU up 14.8% to 0.8 cent for first quarter

ESR-Reit posted a core distribution per unit (DPU) of 0.8 cent for the first quarter, up 14.8 per cent from the year before.

Gross revenue rose 4.4 per cent to $60.3 million for the three months to March 31, from $57.8 million a year earlier, mainly due to the absence of provision for Covid-19 rental rebates to tenants and lower property costs, the manager said yesterday.

Net property income grew 7.6 per cent to $44.1 million for the quarter, up from $41 million a year earlier.

Lower property expenses were mainly due to cheaper electricity at certain properties, reduced power use in common areas, as well as reduced maintenance costs in relation to safe management measures.

Total income available for distribution rose 17.1 per cent year on year to $28.7 million. This amount includes $1.8 million in management fees payable to the manager and property manager, less than the $2.2 million paid out in the first quarter of last year.

The distribution will be paid out on June 24, after the books closure date on April 30.

The manager said rental collection for the first quarter was 97.5 per cent of total receivables, in line with pre-pandemic levels.

The portfolio has a weighted average lease expiry of 2.9 years. The occupancy rate, meanwhile, was 90.8 per cent in the quarter.

No rental rebates were provided to tenants in the first quarter. Tenants have also gradually resumed rental payments, previously deferred under relief measures last year.

Mr Adrian Chui, chief executive and executive director of ESR-Reit's manager, said: "Notwithstanding the widespread impact of Covid-19, (the first quarter) has been characterised by increased leasing momentum, strong rental collections and ongoing initiatives to enhance our portfolio quality."

The rebranded UE BizHub East, now known as ESR BizPark @ Changi, completed renovations, with the temporary occupation permit obtained on March 31.

Spaces were reshaped in response to work-from-home arrangements, while amenities and traffic circulation improved.

ESR-Reit units closed unchanged at 40.5 cents yesterday.

THE BUSINESS TIMES