ESR-REIT Annual Report 2024 53 STATEMENT OF NET INCOME AND DISTRIBUTION FY2024 FY2023 Fav/(Unfav) S$’000 S$’000 % Gross revenue 370,504 386,350 (4.1) Property expenses (108,850) (113,191) 3.8 Net property income (“NPI”) 261,654 273,159 (4.2) Income from investments at fair value through profit or loss 7,803 9,215 (15.3) Management fees (20,724) (21,924) 5.5 Trust expenses (7,674) (6,348) (20.9) Borrowing costs, net (68,885) (76,013) 9.4 Finance costs on lease liabilities for leasehold land (31,469) (32,176) 2.2 Net income 140,705 145,913 (3.6) Taxable income 149,100 158,291 (5.8) Tax-exempt income 3,393 4,084 (16.9) Capital distribution 11,571 30,323 (61.8) Amount available for distribution to Unitholders 164,064 192,698 (14.9) Distribution per Unit (“DPU”) (cents) 2.119 2.564 (17.4) In 2024, gross revenue, NPI and DPU declined primarily due to the divestment of non-core assets, the decommissioning of 2 Fishery Port Road and lower capital gains distribution. The decline was partially offset by ESR-REIT’s successful completion of several strategic initiatives over the past two years, including the Recycling of divestment proceeds from the divestment of 12 non-core assets in FY2023 and FY2024 into two transformational acquisitions completed in November 2024: ESR Yatomi Kisosaki Distribution Centre in Japan and a 51% interest in 20 Tuas South Avenue 14 in Singapore, and the Rejuvenation of its portfolio through the completion of the AEI at 7002 Ang Mo Kio Avenue 5 and 21B Senoko Loop in 3Q2023 and 1Q2024 respectively. These strategic initiatives significantly enhanced portfolio quality, with full year income contribution commencing from FY2025. Gross Revenue ESR-REIT’s gross revenue for FY2024 was S$370.5 million, a decrease of S$15.8 million or 4.1% from FY2023. The decrease was mainly due to the loss of income from the divestment of non-core assets aggregating S$440.6 million in FY2023, 182-198 Maidstone Street located in Australia in 2Q2024 and 81 Tuas Bay Drive located in Singapore in 4Q2024, and the decommissioning of 2 Fishery Port Road. The decrease is partially offset by income contributions from the acquisitions of ESR Yatomi Kisosaki Distribution Centre and 20 Tuas South Avenue 14 in November 2024, and the completion of AEIs at 7002 Ang Mo Kio Avenue 5 and 21B Senoko Loop in 3Q2023 and 1Q2024 respectively. 20.0% Business Park 16.1% High-Specifications Industrial 47.0% Logistics 16.9% General Industrial FY2024 Gross Revenue by Asset Class (%) 19.7% Business Park 13.4% High-Specifications Industrial Logistics 17.5% General Industrial 49.4% FY2023 FINANCIAL REVIEW
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