OUR ACHIEVEMENTS IN 2025 Operational Highlights • Achieved positive rental reversion of 11.7% in FY2025, mainly driven by core logistics and high-specifications industrial sectors • Achieved high occupancy of 91.1%, consistently above market average • Significant 71.6% New Economy exposure • TOP obtained for asset enhancement initiatives at 16 Tai Seng Street, Singapore, with AEI ongoing at 29 Tai Seng Street, Singapore • Divestment of non-core assets aggregating S$455.8 million at premium over valuation Read more on pages 45 to 52 Financial Highlights • Gross Revenue grew 20.4% year-on-year to S$446.0 million • Net Property Income grew 25.6% year-on-year to S$328.7 million • Distribution per Unit of 21.914 Singapore cents for FY2025, representing a 3.4% increase • Core DPU, which accounts for 98% of DPU, grew 7.6% to 21.440 Singapore cents • Completed the 10:1 Unit consolidation Read more on pages 53 to 56 Capital Management • Assigned ‘BBB’ rating with ‘Stable’ outlook by Fitch Ratings • Gearing of 43.4% with lowered cost of debt to 3.35% per annum • Achieved high fixed rate hedge of 68.4% • Expected interest savings on FY2026 SGD loan expiries with compression of loan margins by c.30bps for upcoming SGD refinancing Read more on pages 57 to 59 Investor Engagement • Awarded Best REIT award at the AsianInvestor Asset Management Awards 2025 • Awarded Best Commercial Real Estate Investment Trust at SBR National Business Awards 2025 by Singapore Business Review • ESR-REIT’s CEO & Executive Director, Mr. Adrian Chui, awarded Investors’ Choice Outstanding CEO Award at the Investors’ Choice Awards 2025 organised by Securities Investors Association (Singapore) (“SIAS”) • Actively engaged with SIAS to co-organise multiple webinars and dialogues to engage with Unitholders • Participated in inaugural “REITs on the Move” site visit initiative in collaboration with SIAS, SGX and REITAS Read more on pages 40 to 44 ESG • Board Sustainability Committee to continue providing strategic oversight on ESG policies and implementation • Decarbonisation Roadmap is under implementation with clear steps, targets, and timeline • Portfolio has a total of 39 properties with green certifications, an increase from 18 in previous year • Portfolio solar capacity increased to 21.2 MWp in FY2025, from 15.5 MWp in FY2024 • Achieved 770 hours of staff volunteerism hours, exceeding target of 500 hours • Achieved GRESB score of 3 Star (82 points), an improvement from the score achieved in FY2024 (2 Stars, 73 points) Read more on our Sustainability Report available on our website: https://esr-reit.listedcompany.com/ar.html. OUR PRIORITIES FOR 2026 1. Rejuvenation of portfolio through acquisitions, redevelopments and AEIs 2. Continue optimisation of portfolio through divestments of non-core assets and recycling proceeds to fund future acquisitions, asset enhancement initiatives and redevelopments to improve portfolio returns, and reduce gearing 3. Carry out selective asset optimisation and improvements to capitalise on the Manager’s AEI capabilities to optimise portfolio value 4. Source for income-producing quality assets locally and regionally; with growth consistently supported by the Sponsor 5. Leverage on Sponsor’s New Economy pipeline for potential accretive acquisition opportunities 6. Strengthen collaboration with strategic partners to capture growth opportunities in the region 7. Prudent management of capital structure and cost of financing 8. Broadening of banking relationships and alternative pools of capital 9. Proactive marketing and leasing of space to maintain a healthy portfolio occupancy and rental reversion 10. Reducing environmental footprint and mobilising resources to create a positive impact on the industrial real estate ecosystem 11. Implementation of Decarbonisation Roadmap to encompass overseas portfolio of Australia and Japan 37 ESR-REIT ANNUAL REPORT 2025
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