a trust deed dated 31 March 2006 (as amended))
FINANCIAL STATEMENTS ANNOUNCEMENT FOR THE HALF YEAR AND FULL YEAR ENDED 31 DECEMBER 2025The Directors of ESR-REIT Management (S) Limited ("ESRM"), as manager of ESR-REIT (the "Manager"), are pleased to announce the unaudited financial results of ESR-REIT and its subsidiaries (the "Group") for the half year ("2H2025") and full year ended 31 December 2025 ("FY2025").
ESR-REIT (the "Trust") is a Singapore-domiciled unit trust constituted pursuant to the trust deed dated 31 March 2006 (as amended, modified, supplemented or restated from time to time) entered into between ESRM as the Manager and Perpetual (Asia) Limited as the trustee (the "Trustee"), and is governed by the laws of the Republic of Singapore ("Trust Deed"). On 31 March 2006, ESR-REIT was declared as an authorised unit trust scheme under the Trustees Act, Chapter 337. The Trustee is under a duty to take into custody and hold the assets of the Group in trust for the holders ("Unitholders") of units in the Trust ("Units").
On 25 July 2006, ESR-REIT was admitted to the Official List of Singapore Exchange Securities Trading Limited ("SGX-ST"). On 3 April 2006, ESR-REIT was included under the Central Provident Fund Investment Scheme.
The principal activity of ESR-REIT is to invest in a diversified portfolio of industrial properties with the primary objective of achieving an attractive level of return from rental income and long-term capital growth.
ESR-REIT's distribution policy is to distribute at least 90% of its annual distributable income comprising income from letting of its properties after deduction of allowable expenses. The actual level of distribution will be determined at the Manager's discretion.
On 10 February 2025, Tuas South Avenue Pte. Ltd. and LSLV Project 5 Pte. Ltd., both indirect subsidiaries of ESR-REIT, were amalgamated into Tuas South Avenue Pte. Ltd.. The company was subsequently converted into a limited liability partnership, Tuas South Avenue LLP, on 8 July 2025.
On 26 February 2025, ESR-REIT entered into a S$160.0 million sustainability-linked unsecured term loan and revolving credit facility agreement. The unsecured term loan and revolving credit facilities consist of a S$60.0 million sustainability-linked term loan facility and a S$100.0 million sustainability-linked revolving credit facility.
On 27 February 2025, ESR-REIT entered into a facility agreement for standby letters of credit / demand guarantee of up to an aggregate amount of S$20.0 million.
On 27 February 2025, ESR-REIT issued S$100.0 million in aggregate principal amount of 4.05% notes due on 27 February 2030 comprised in Series 010 (the "Series 010 Notes"). The Series 010 Notes were issued pursuant to the S$750.0 million Multicurrency Debt Issuance Programme (the "Programme").
On 20 March 2025, ESR-REIT issued S$125.0 million in aggregate principal amount of 5.75% subordinated perpetual securities comprised in Series 011 (the "Series 011 PS"). The Series 011 PS are issued pursuant to the Programme.
In March 2025, ESR-REIT completed the divestment of 1 Third Lok Yang Road and 4 Fourth Lok Yang Road, and 79 Tuas South Street 5 in Singapore for a sale consideration of approximately S$6.8 million and S$9.85 million, respectively.
On 5 May 2025, ESR-REIT fully redeemed the S$75.25 million subordinated perpetual securities comprised in Series 006 (the "Series 006 PS") issued under the Programme. Upon the redemption, the Series 006 PS were cancelled and delisted from the SGX-ST.
On 5 May 2025, ESR-REIT completed the unit consolidation (the "Unit Consolidation") of every ten (10) existing Units held by Unitholders of ESR-REIT into one (1) consolidated Unit.
On 18 July 2025, ESR-REIT obtained the Temporary Occupation Permit ("TOP") in respect of the asset enhancement initiative ("AEI") at 16 Tai Seng Street, Singapore.
On 15 December 2025, the Manager announced the divestment of eight non-core assets aggregating S$338.1 million as part of its portfolio rejuvenation and capital recycling strategy for ESR-REIT. The divestment of the properties are expected to be completed over two phases in the second and third quarters of 2026.
As at 31 December 2025, the Group holds interest in a diversified portfolio of 70 properties (excluding 48 Pandan Road, which is held through a joint venture) located across Singapore, Australia and Japan with a diversified tenant base of approximately 384 tenants across the following sub sectors: business park, high-specifications industrial, logistics and general industrial.
Summary of the Group's ResultsFY2025 S$'000 | FY2024 S$'000 | Fav/(Unfav) % | |
Gross revenue | 445,984 | 370,504 | 20.4 |
Net property income | 328,679 | 261,654 | 25.6 |
Amount available for distribution | 176,076 | 164,064 | 7.3 |
- Taxable income | 148,828 | 149,100 | (0.2) |
- Tax-exempt income | 9,843 | 3,393 | 190.1 |
- Capital distribution | 17,405 | 11,571 | 50.4 |
Distributable amount available per Unit (cents)(1) | 21.914 | 21.190 | 3.4 |
- Taxable income | 18.521 | 19.250 | (3.8) |
- Tax-exempt income | 1.226 | 0.440 | 178.6 |
- Capital distribution | 2.167 | 1.500 | 44.5 |
(1) Comparative numbers are adjusted for the 10:1 Unit Consolidation completed on 5 May 2025 to provide for a like-for-like comparison
Breakdown of distributable amount available per Unit
FY2025 cents | FY2024 cents | Fav/(Unfav) % | |
For the half year ended 30 June | 11.239 | 11.220 | 0.2 |
For the half year ended 31 December | 10.675 | 9.970 | 7.1 |
For the year ended 31 December | 21.914 | 21.190 | 3.4 |
Distribution details for 2H2025
Distribution period | 1 July 2025 to 31 December 2025 |
Distribution rate | 10.675 cents per unit comprising:
|
Record date | 12 February 2026 |
Payment date | 24 March 2026 |
The Manager has determined that the distribution reinvestment plan ("DRP") will not apply to the distribution for the period from 1 July 2025 to 31 December 2025.
1(a) Statement of Total Return, together with comparative statement for the corresponding period of the immediately preceding financial yearGroup
Note(1) | 2H2025 S$'000 | 2H2024 S$'000 | Fav/ (Unfav) % | FY2025 S$'000 | FY2024 S$'000 | Fav/ (Unfav) % | |
Gross revenue | 7 | 223,058 | 189,598 | 17.6 | 445,984 | 370,504 | 20.4 |
Property expenses | 8 | (60,635) | (55,783) | (8.7) | (117,305) | (108,850) | (7.8) |
Net property income | 162,423 | 133,815 | 21.4 | 328,679 | 261,654 | 25.6 | |
Income from investments at fair value through profit or loss | 3,743 | 3,967 | (5.6) | 7,074 | 7,803 | (9.3) | |
Management fees | 9 | (11,329) | (10,446) | (8.5) | (22,791) | (20,724) | (10.0) |
Trust expenses | 10 | (3,256) | (4,019) | 19.0 | (7,161) | (7,674) | 6.7 |
Borrowing costs, net | 11 | (40,281) | (36,523) | (10.3) | (84,919) | (68,885) | (23.3) |
Finance costs on lease liabilities for leasehold land | (17,293) | (15,801) | (9.4) | (33,760) | (31,469) | (7.3) | |
Net income | 94,007 | 70,993 | 32.4 | 187,122 | 140,705 | 33.0 | |
Foreign exchange (loss)/gain | (1,649) | 4,877 | n.m. | 300 | 4,151 | (92.8) | |
Change in fair value of investments at fair value through profit or loss | 4 | 874 | (26,166) | n.m. | (3,065) | (26,796) | 88.6 |
Change in fair value of financial derivatives | 7,780 | (5,466) | n.m. | (10,055) | (6,559) | (53.3) | |
Change in fair value of investment properties | 3 | (83,370) | (136,610) | 39.0 | (125,097) | (220,180) | 43.2 |
Change in fair value of right-of-use of leasehold land | 3 | 4,872 | 4,046 | 20.4 | 9,342 | 8,179 | 14.2 |
Share of results of joint venture | 556 | 867 | (35.9) | 3,001 | 2,842 | 5.6 | |
Total return/(loss) for the period before income tax | 23,070 | (87,459) | n.m. | 61,548 | (97,658) | n.m. | |
Income tax expense | (3,586) | (7,651) | 53.1 | (7,818) | (9,956) | 21.5 | |
Total return/(loss) for the period after income tax | 19,484 | (95,110) | n.m. | 53,730 | (107,614) | n.m. | |
Attributable to: | |||||||
Unitholders of the Trust and perpetual securities holders | 3,977 | (113,715) | n.m. | 31,657 | (127,779) | n.m. | |
Non-controlling interests | 15,507 | 18,605 | (16.7) | 22,073 | 20,165 | 9.5 | |
Total return/(loss) for the period | 19,484 | (95,110) | n.m. | 53,730 | (107,614) | n.m. | |
Earnings per Unit (cents)(2) | |||||||
Basic and diluted | (1.132) | (16.049) | 92.9 | 0.697 | (19.140) | n.m. | |
Distribution per Unit (cents)(2) | 10.675 | 9.970 | 7.1 | 21.914 | 21.190 | 3.4 | |
Distribution Statement | |||||||
Total return/(loss) after income tax, | 3,977 | (113,715) | n.m. | 31,657 | (127,779) | n.m. | |
before distribution for the period | |||||||
Distribution adjustments (Note A) | 84,366 | 199,334 | (57.7) | 143,226 | 297,156 | (51.8) | |
Amount reserved for distribution to perpetual securities holders | 88,343 (13,068) | 85,619 (11,203) | 3.2 (16.6) | 174,883 (26,055) | 169,377 (20,277) | 3.3 (28.5) | |
Net income available for distribution for the period | 75,275 | 74,416 | 1.2 | 148,828 | 149,100 | (0.2) | |
Total amount available for distribution | |||||||
comprising: | |||||||
- Taxable income | 75,275 | 74,416 | 1.2 | 148,828 | 149,100 | (0.2) | |
- Tax-exempt income | 3,372 | 3,393 | (0.6) | 9,843 | 3,393 | 190.1 | |
- Capital distribution | 7,286 | - | 100.0 | 17,405 | 11,571 | 50.4 | |
Amount available for distribution to Unitholders | 85,933 | 77,809 | 10.4 | 176,076 | 164,064 | 7.3 | |
for the period | |||||||
n.m.: not meaningful
(1) Please refer to the Notes to the Financial Statements on pages 47 to 69
(2) Comparative figures are adjusted for the 10:1 Unit Consolidation completed on 5 May 2025 to provide for a like-for-like comparison
Note A - Distribution adjustments Group2H2025 S$'000 | 2H2024 S$'000 | Fav/ (Unfav) % | FY2025 S$'000 | FY2024 S$'000 | Fav/ (Unfav) % | |
Non-tax deductible/(chargeable) items | ||||||
and other adjustments: | ||||||
Management fees paid/payable in Units | 6,081 | 5,757 | 5.6 | 12,262 | 11,460 | 7.0 |
Property Manager's fees paid/payable in Units | 1,552 | 1,487 | 4.4 | 3,064 | 2,940 | 4.2 |
Trustee's fees | 326 | 295 | 10.5 | 652 | 665 | (2.0) |
Financing related costs, including amortisation of debt related costs | 5,273 | 5,896 | (10.6) | 11,484 | 11,538 | (0.5) |
Unrealised foreign exchange loss/(gain) | 1,822 | (4,598) | n.m. | 25 | (4,155) | n.m. |
Change in fair value of investments at fair value through profit or loss | (874) | 26,166 | n.m. | 3,065 | 26,796 | (88.6) |
Change in fair value of investment properties | 83,370 | 136,610 | (39.0) | 125,097 | 220,180 | (43.2) |
Change in fair value of financial derivatives | (7,780) | 5,466 | n.m. | 10,055 | 6,559 | 53.3 |
Legal and professional fees | (38) | 87 | n.m. | 386 | 91 | 324.2 |
Adjustment for straight line rent and lease incentives | (5,954) | (420) n.m. | (10,087) | (1,824) | (453.0) | |
Miscellaneous expenses | 673 | 2,774 | (75.7) | 1,751 | 5,173 | (66.2) |
Share of results of joint venture | (556) | (867) | 35.9 | (3,001) | (2,842) | (5.6) |
Distributable income from joint venture | 3,104 | 2,239 | 38.6 | 5,573 | 4,214 | 32.2 |
Deferred tax expense | 2,869 | 6,294 | (54.4) | 2,772 | 4,272 | (35.1) |
Non-controlling interest share of non-tax deductible items | 4,597 | 15,620 | (70.6) | 2,248 | 15,409 | (85.4) |
Rollover adjustment from prior years | (5,605) | 1,461 | n.m. | (6,426) | 1,461 | n.m. |
Tax interest adjustment | 943 | 359 | 162.7 | 943 | 359 | 162.7 |
Net tax adjustments for income from subsidiaries and | (5,437) | (5,292) | (2.7) | (16,637) | (5,140) | (223.7) |
investments at fair value through profit or loss | ||||||
Net effect of distribution adjustments | 84,366 | 199,334 | (57.7) | 143,226 | 297,156 | (51.8) |
n.m.: not meaningful