SINGAPORE - ESR-Logos Reit saw gross revenue of $96.2 million for the third quarter ended Sept 30, a rise of 57.4 per cent from the previous year, while net property income (NPI) rose 59.2 per cent to $69.9 million.

In a business update on Wednesday, its manager attributed the higher year-on-year gross revenue and NPI to contributions from Ara Logos Logistics Trust (ALog Trust) after a merger that took place in April 2022.

The latest set of results brings ESR-Logos Reit’s gross revenue for the year to date to $243.9 million, up 34.8 per cent from $180.9 million in 2021.

Year-to-date NPI rose 32 per cent to $172.7 million from $130.8 million a year ago.

Net asset value (NAV) per unit as at Sept 30, however, fell 7.6 per cent to 36.6 cents from 39.6 cents the year before, after factoring in the premium paid over ALog Trust’s NAV as well as transaction costs that were incurred to the merger being written off in the second quarter of 2022.

For both the third quarter and year-to-date 2022, the real estate investment trust’s portfolio achieved a positive rental reversion of 11.4 per cent, with space demand mainly driven by the logistics and high-specs segment.

Its weighted average lease expiry stood at 3.2 years, with about 6.4 per cent of leases due for renewal in financial year 2022.

About 91 per cent of these expiring leases are in the process of the renewal, said the manager.

Portfolio occupancy stood at 92.4 per cent – which the manager highlighted is above the industry average, albeit down from previous quarters (94.1 per cent in the second quarter and 93.7 per cent in the first quarter).

Citing advanced estimates from the Ministry of Trade and Industry for the third quarter, the manager foresees a slowdown in global economic activity to result in the dampening of private consumption and investments going forward, with Singapore’s manufacturing sector and some trade-related services expected to moderate downwards.

While the manager said it anticipates continued demand for logistics as well as high-specs sectors in Singapore for the rest of the year, it cautioned that the pace of growth could moderate in 2023 amid softening sentiments alongside mounting global risks.

In Australia, it noted a slight fall in national vacancy rates and an increase in rents by a new record high, led by Sydney.

Units of ESR-Logos Reit were trading up 0.5 cent, or 1.5 per cent, at 33.5 cents as at 11.10am on Wednesday, after its business update. THE BUSINESS TIMES