ESR Reit Q3 net property income falls 4.2% to S$237.5 million

In the nine months leading up to September 30, 2026, the manager of Kore US Real Estate Investment Trust (Reit) disclosed a 3% increase in net property income (NPI) to US$63.1 million, up from US$61.3 million in the same period a year prior. Revenue grew 2.5% to US$114.9 million, compared to US$112.1 million previously. Adjusted NPI, which excludes certain non-cash expenses, rose 5.5% to US$66.7 million, from US$63.2 million.

This increase was largely driven by higher one-off termination fee income, other operating income, and cash rental income, though it was offset partially by increased repair, maintenance, and utility expenses. Finance and other trust expenses climbed 5.4% to US$26 million, due to higher finance costs. The Reit's distribution per unit is expected to "remain consistent" at US$0.004 for the second half of 2026 and the first half of 2027, subject to market and financing conditions.

The manager aims to gradually raise the payout ratio to a sustainable level, in line with the Reit's portfolio performance. As of September 30, 2026, portfolio occupancy was at 86.1%, with a 0.7% year-on-year increase in portfolio rental reversion. The Reit's target occupancy by the end of fiscal year 2026 is at least 87%. The Reit's portfolio has a weighted average lease expiry of 3.8 years across 13 freehold office buildings and business campuses, with an NLA of 4.8 million square feet.