ESR-Reit cuts first-half DPU to 1.162 S cents

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THE distribution per unit (DPU) of ESR-Reit fell by 42.2 percent to 1.162 Singapore cents for the half year finished June 30, 2020, from 2.011 cents in the year-back period.

The lower DPU was principally because of the effect of the novel coronavirus pandemic and the subsequent “electrical switch” measures imposed by the Singapore government, as well as the maintenance of about S$7 million of distributable salary in the first quarter for “judicious cash stream the board”, the industrial land investment trust’s (Reit) director said in results released on Thursday.

Gross income was down 11.5 percent to S$113.8 million for the first six months, from S$128.6 million every year prior.

Net property pay (NPI) fell by 16.8 percent on the year to S$80.2 million for H1 2020, from S$96.4 million.The lower gross income and NPI were to a great extent inferable from lease conversion from single to multi-tenure for specific properties, as well as non-renewals and downsizing by some tenants.Rental rebates set aside for as well as given to tenants totalled about S$4.6 million. These are a piece of ESR-Reit’s measures to support tenants adversely influenced by the coronavirus pandemic.

Total sum accessible for distribution to unitholders declined 25.3 percent year on year to S$47.8 million, from S$64 million.

For the second quarter, DPU dropped by 34.1 percent to 0.662 Singapore penny, from 1.004 cents a year back. The distribution for Q2 will be paid out on Sept 17, after books closure on July 24.

ESR-Reit has proposed a merger with Sabana Shari’ah Compliant Industrial Real Estate Investment Trust to frame one of the largest industrial Reits in Singapore, their managers declared in a separate recording on Thursday.

ESR-Reit required an exchanging stop on Thursday before the market opened. Its units closed level at S$0.39 on Wednesday.

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