ESR-Reit reports 2.3% drop in Q3 DPU

ESR-Reit reported a 2.3 per cent drop in distribution per unit (DPU) to 0.964 cent for the three months ended Sept 30.

This came as net property income fell 1.6 per cent to S$19.6 million as income from new leases partially mitigated the loss of revenue during the conversion of properties from single-tenanted to multi-tenanted, higher property operating expenses as a result of the conversions, increased maintenance costs and property divestments.

During the fiscal third quarter, more than 1.08 million sq ft of space was renewed, with occupancy of 91.1 per cent and weighted average lease expiry (WALE) at 3.4 years.

The Q3 occupancy marked a decline from the 95.4 per cent as of June 30 due to the inclusion of 120 Pioneer Road into the occupancy calculation following completion of its asset-enhancement initiative and impact of the non-renewal of the CWT lease at 3 Pioneer Sector 3.

Both assets are being actively marketed and good progress is being made towards leasing out the spaces at both buildings.