54 STRATEGICALLY ADVANCING A breakdown of the half yearly DPU from FY2022 to FY2024 is as follows: HALF YEARLY DPU 1 Jan to 30 Jun (1H) 1 Jul to 31 Dec (2H) Total DPU for the year cents cents cents FY2022 1.460 1.540 3.000 FY2023 1.378 1.186 2.564 FY2024 1.122 0.997 2.119 ESR-REIT’s distribution yield as at 31 December 2024 was 8.3% per annum1. The REIT has been consistently delivering a yield higher than that of the Singapore Government 10-year SGD bond of 2.9%. Net Property Income NPI for FY2024 was S$261.7 million, a decrease of S$11.5 million or 4.2% from FY2023, in tandem with the lower gross revenue. 16.5% Business Park 15.6% High-Specifications Industrial 50.5% Logistics 17.4% General Industrial FY2024 Net Property Income Contribution by Asset Class (%) 17.1% Business Park 13.0% High-Specifications Industrial 52.1% Logistics 17.8% General Industrial FY2023 Net Income Net Income for FY2024 was S$140.7 million, a decrease of S$5.2 million or 3.6% from FY2023 mainly due to the lower NPI. The lower NPI was partially offset by lower borrowing costs, which was S$7.1 million or 9.4% lower as compared to FY2023, mainly due to interest savings from the repayment of debt using the proceeds from the equity fundraising completed in FY2023, and the divestment of non-core assets completed in FY2023 and FY2024. The lower distribution income from the Australian property funds was mainly due to higher borrowing costs incurred due to higher base rates while the higher trust expenses for FY2024 was mainly due to higher non-claimable input Goods and Services Tax (“GST”) as the De Minimis rule under the GST Act was not satisfied. Such non-claimable input GST is not tax deductible and therefore has no impact on distributable income. Distributions Paid to Unitholders The amount available for distribution to Unitholders for FY2024 amounted to S$164.1 million, a decrease of S$28.6 million or 14.9% from FY2023, which was mainly attributable to the lower net income, as well as the lower distribution of capital gains from the sale of investment properties in prior years. FY2024 DPU of 2.119 cents was 17.4% lower than the FY2023 DPU of 2.564 cents due to the lower amount available for distribution to Unitholders and a higher number of ESR-REIT units (“Units”) in issue subsequent to the equity fundraising completed in FY2023 and FY2024. Included in the amount available for distribution to Unitholders was approximately S$0.2 million (DPU of 0.003 cents) of income support in relation to ESR Yatomi Kisosaki Distribution Centre that was received and paid to Unitholders in FY2024. 1 Based on closing price of S$0.255 as at 31 December 2024.
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