On Apr, 17 2026 ESR-REIT said gross revenue for the financial year ended Dec, 31 2025 rose 20.4 % to 446.0 million Singapore dollars, while net property income increased 25.6 % to 328.7 million Singapore dollars. Total distribution per unit climbed 3.4 % year on year to 21.914 cents, with core DPU (98 % of total) up 7.6 %.
The trust attributed the performance to its “4R” strategy, which included divestment of 455.8 million Singapore dollars of non-core assets, completion of asset enhancement initiatives and acquisitions of modern, large-scale properties. The measures have extended the portfolio’s weighted average lease expiry, mitigated land-lease decay concerns and cut gearing to a pro-forma 39.5 % following debt reduction from divestment proceeds.
ESR-REIT strengthened its balance sheet by refinancing about 300 million Singapore dollars of loans at roughly 30 basis points lower margins and maintained an investment-grade “BBB” rating with a Stable outlook from Fitch Ratings. Approximately 70.9 % of projected income from its Australia and Japan portfolios over the next year is hedged against foreign-exchange movements.
To curb operating-expense pressures, the manager has locked in three-year fixed-rate energy contracts starting Oct, 1 2026 at prices comparable to expiring agreements, limiting exposure to short-term power-cost spikes. About 81 % of electricity usage is recoverable from tenants. Repair and maintenance plus service-contract expenses are expected to rise 8–10 % annually, though bulk procurement and outcome-based contracts aim to moderate increases.
Looking ahead, ESR-REIT expects near-term headwinds from elevated energy costs, potential higher-for-longer interest rates and increased industrial supply in Singapore, which JTC estimates at 1.0 million square metres in 2026 and 1.6 million square metres in 2027. Even so, management targets an 8–10 % total unitholder return over the next five years, underpinned by organic growth from redevelopments, selective accretive acquisitions and prudent leverage in the mid-30 % to low-40 % range.
Immediate priorities include preserving balance-sheet resilience, earnings visibility and portfolio stability while monitoring the impact of ongoing Middle East tensions on energy prices, interest rates and tenant demand.