ESR-REIT today released its interim business update for the nine months ended Sep, 30 2025, posting a 22.7% year-on-year increase in gross revenue to 334.5 million Singapore dollars. Net property income rose 28.6% to 247.8 million Singapore dollars, while distributable income grew 6.8% to 134.6 million Singapore dollars.

Net asset value per unit stood at 2.61 Singapore dollars, adjusted for the 10-for-1 unit consolidation completed on May, 5 2025. Portfolio occupancy was 90.3% at end-September, and rental reversions remained positive at +8.4% for the year to date.

Gearing edged up to 43.3% from 42.8% at Dec, 31 2024, but the weighted average all-in cost of debt fell to 3.40% per annum from 3.84%. ESR-REIT has hedged 78.2% of its interest rate exposure and carries a weighted average debt expiry of 2.3 years. Fitch Ratings assigned the trust a ‘BBB’ rating with a stable outlook.

During the period, the trust divested 16.7 million Singapore dollars of non-core assets at premiums to valuation and completed the asset enhancement initiative at 16 Tai Seng Street, with an ongoing AEI at 29 Tai Seng Street targeted for 1H2026 completion.

Management said it will focus on organic growth, further non-core divestments of 250-350 million Singapore dollars to reduce gearing, and completion of current AEIs. Growth via new acquisitions and equity issuance is not a priority for the remainder of FY2025, the update added.