ESR-REIT has released its interim business update for the third quarter of 2026, highlighting a 9.3% positive rental reversion, up from 8.4% in the same period last year. The trust has also completed the acquisition of six logistics properties in Australia for A$341.1m, which is expected to enhance its distribution per unit by 5.1%.
The update shows a strategic focus on the new economy, with 75.1% of the portfolio now dedicated to this sector, an increase from 70.9% in Q3 2025. Additionally, ESR-REIT has announced the divestment of several properties, including 15 Gul Way and 30 Pioneer Road, at a premium to their valuations. These divestments are part of a broader strategy to optimise the portfolio and reduce debt.
Despite a 1.5% year-on-year decrease in gross revenue to S$329.6m, the trust achieved a 1.8% increase on a same-store basis. Net property income also saw a decline of 4.2% year-on-year, attributed mainly to the divestment of non-core properties.
The trust’s gearing stands at 44.1%, with a cost of debt at 3.38% per annum. ESR-REIT has secured a ‘BBB’ rating with a stable outlook from Fitch Ratings, reflecting its robust financial management.
Looking ahead, ESR-REIT plans to continue its proactive asset management strategies, including engaging with sub-lessees for direct leasing discussions to mitigate risks associated with tenant defaults. The trust remains focused on maintaining a healthy occupancy rate, which currently stands at 91.7%.
