S-REITs - Week 7 - 2025

( YTD: +6.78% | 5D: +5.00%)

 10 Feb - Full Yearly Results

• FY2024 DPU rises 5.0% year-on-year to 2.87 pence from interest and tax savings
  
  
• Achieves higher portfolio valuation of £416.2 million as at 31 December 2024, including a 36% year-on-year increase in valuation for Peel Park, Blackpool
  • Secures 120 MVA of power supply for hyperscale and artificial intelligence-enabled capacity data centre
  • Peel Park, Blackpool planning application for a proposed data centre site in final stages
    
    
• Vacant assets contracted to divest at an average of 15.1% premium to valuation, net proceeds of which will reduce gearing
  
  
• Net gearing ratio improves to 42.5% year-on-year by 5 percentage points
  
  
• Occupancy rate increases 160 basis points to 93.9% year-on-year

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( YTD: -8.18% | 5D: -4.72%)

11 Feb - Appoints New CEO

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( YTD: -5.88% | 5D: -5.88%)

10 Feb -  Proposed Unit Consolidation

The Proposed Unit Consolidation involves the consolidation of every ten (10) existing units in ESR- REIT into one (1) Unit.

For the management full rationale, please refer to the link below.

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11 Feb - Share  Buy-Back

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12 Feb - Receipt Of Approval In-Principle For The Consolidated Units Pursuant To The Proposed Unit Consolidation

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( YTD: +7.84% | 5D: +1.85%)

11 Feb - FY 2024 Financial Results

• Rental and Other Income 1 strengthened by a built-in increment in rental income from Indonesia and Singapore
  
  
• Appraised valuation remains resilient at S$1.12 billion
  
  
• DPU for the full year ended 31 December 2024 of 2.36 Singapore cents was 4.8% lower year-on-year.
  
  
• Rental and Other Income for Indonesia and Singapore properties increased by 4.7% and 2.0% respectively in local currency terms while Rental and Other Income for our Japan properties remained stable. 
  
  
• Significant headwinds due to currency depreciation of Indonesian Rupiah and Japanese Yen against the Singapore Dollar, which had a direct impact on our Distributable Income and DPU.
  
  
• Rental and Other Income declined 5.9% Y-O-Y to S$102.2 million in FY2024 and Net Property and Other Income fell 6.5% Y-O-Y to S$98.5 million over the same period.
  
  
• As at 31 December 2024, First REIT’s portfolio was valued at S$1.12 billion, representing a 1.9% decline from FY2023 due to weakening of the Japanese Yen and Indonesian Rupiah against the Singapore Dollar, partly offset by an increase in valuation for Indonesia and Japan properties in local currency terms.

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( YTD: +12.50% | 5D: +10.61%)

11 Feb - Full Yearly Results

• Finance costs for 2H 2024 and FY2024 were higher than the corresponding period and year mainly due to an additional loan drawn down to redeem perpetual securities that matured in August 2024. The average cost of debt for the Group was 4.40% per annum for FY2024 (FY2023: 4.30%).
  
  
• The Group recognised a fair value gain of S$175.6 million in FY2024. This comprises a fair value gain of S$213.4 million contributed by the investment properties in Singapore offset by a fair value loss of S$37.8 million mainly due to 25 basis points capitalisation rate expansion for Westfield Marion.
  
  
• On 30 August 2019, the Trust issued S$300.0 million of subordinated perpetual securities (the “Perpetual Securities”) at a rate of 4.10% per annum, with the first distribution rate reset falling on 30 August 2024 and subsequent resets occurring every five years thereafter. The Perpetual Securities were fully redeemed on 30 August 2024.
  
  
• The fair values of Paragon, The Clementi Mall, and Westfield Marion as at 31 December 2024 were S$2,903.0 million, S$645.0 million, and S$490.2 million respectively. As at 31 December 2023, investment properties also included The Rail Mall, which was divested on 15 August 2024, and Figtree Grove, which was reclassified as an asset held for sale as at 31 December 2024.
  
  
• The increase in balance is due to a S$300.0 million loan, drawn down to fully redeem the perpetual securities. The S$300.0 million loan carries a lower interest cost compared to the perpetual securities. The increase in borrowing is partially offset by S$25.0 million loan repayment with the proceeds from the divestment of The Rail Mall and depreciation of Australian Dollar against Singapore Dollar.
  
  
• Review of Results for the Second Half ended 31 December 2024 (“2H 2024”) compared with the Second Half ended 31 December 2023 (“2H 2023”)
  
  
  • In 2H 2024, gross revenue increased by S$7.8 million (5.3%) to S$153.6 million mainly contributed by the positive rental reversions in Singapore.
    
    
  • Property operating expenses increased by S$2.9 million (7.8%) to S$39.7 million mainly due to increase in property tax, marketing expenses and insurance.
    
    
  • Net property income (“NPI”) increased by S$4.9 million (4.5%) to S$113.9 million.
    
    
  • Total return for the 2H 2024 increased by S$48.8 million (45.7%) to S$155.6 million, contributed mainly by S$46.3 million increase in fair value gain on investment properties.

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11 Feb - Cuscaden Peak And PARAGON REIT Jointly Announce Proposed Scheme Of Arrangement To Privatise PARAGON REIT

• Scheme Consideration of S$0.9800 in cash per Unit delivers attractive value
  • Price / Adjusted NAV of 1.07x, an 8.4% premium to precedent privatisations
  • 10.9% and 12.8% premium to the 1-month and 12-month VWAP
    
    
• PARAGON REIT will also pay 2H FY2024 cash distribution of 2.33 Singapore cents per Unit
  • Scheme Consideration will not be reduced by this amount
    
    
• Offeror proposes a privatisation to pave way for a major AEI to future-proof Paragon
  • Paragon is experiencing increasing competition from surrounding malls
  • Major AEI necessary to maintain long-term competitiveness but could take several years
  • Privatisation will allow a Potential AEI to be implemented without subjecting Unitholders to execution risks, as well as DPU and unit price volatility

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( YTD: -1.64% | 5D: -0.83%)

12 Feb - FY 2024 Result

• Gross revenue and net property income increase by 1.8% and 0.6% year-on-year to S$108.7 million and S$99.3 million respectively.
  
  
• Higher contributions from all segments supported by better operating performance.
  
  
• Distribution per Stapled Security of 4.04 cents remains above the pre-COVID level of 2019.
  
  
• Distribution to Stapled Securityholders marginally declined by 0.6% year-on-year to S$81.4 million, mainly due to higher finance costs and a change in the proportion of the REIT Manager’s fee paid in Stapled Securities.
  
  
• In anticipation of higher finance expenses in 2024, the REIT Manager had announced earlier that the Trust intended to utilise a portion of the S$18.0 million incentive fee received in March 2023 to cushion the impact. As such, the REIT Manager will be distributing S$5.1 million as other gains distribution for this purpose, and another S$3.0 million to negate the impact on the change in the proportion of the REIT Manager’s fee paid in Stapled Securities.
  
  
• The Hotel segment recorded a 0.9 percentage points (“pp”) improvement in average occupancy to 81.0%, with ADR increasing 4.5% to S$178, reflecting the portfolio’s steady recovery following the conclusion of government contracts in the prior year.
  
  
• The Serviced Residences segment, ADR recorded a 4.0% increase in ADR to S$271, supported by favourable pricing trends and a greater proportion of short-stay leisure bookings. 
  
  
• Revenue from the REIT Commercial Premises (RCP) segment amounted to S$17.3 million, marking a 7.3% increase from the previous year, driven by higher retail and office rental rates and improved occupancies.
  
  
• As at 31 December 2024, Far East H-Trust’s portfolio value increased 0.2% to S$2.52 billion, reflecting stable asset valuations amid a recovering hospitality sector. 
  
  
• As at 31 December 2024, total debt stood at S$718.1 million, of which 57.9% were on fixed interest rates arising from interest rate swap contracts entered into to hedge against the exposure to interest rate volatility. Together with higher portfolio value, aggregate leverage improved to 30.8%, a reduction of 0.5 pp from a year ago.

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On the 8 Jan 2025, REITsavvy hosted the annual event for Singapore REITs Outlook: What’s ahead for 2025, jointly organised with SGX. We want to extend our greatest appreciation to our sponsor; Philip Capital, Sassuer REIT and Elite UK REIT.

Read the event review - click here