Proceeds from the EFR were used to acquire 20 Tuas South Ave 4 and ESR Yatomi Kisosaki Distribution Centre. The acquisitions were completed in December 2024. The two acquisitions will contribute a full year of income in 2025.
Although ESR REIT’s FY2024 distributions per unit (DPU) fell by 17% y-o-y to 2.119 cents, DPU is set to rebound this year. “We expect 2024 to be the trough,” says Adrian Chui, CEO of ESR REIT’s manager.
In 2023 and 2024, ESR REIT restructured and rejuvenated its portfolio. It divested $535 million of assets. As a result there was no income from these divestments. Secondly, ESR REIT held an equity fund raising (EFR) in 2024, raising $300 million, increasing the number units in issue.
