ESR-REIT's NPI down 1.6% to $19.6m in Q3

Operating costs piled up during the conversion of properties.

ESR-REIT's net property income (NPI) in Q3 dipped 1.6% YoY from $19.9m in 2016 to $19.6m in 2017.

According to its financial statement, the REIT lost revenue from converting their properties from single-tenanted to multi-tenanted. It also incurred higher operating expenses from the conversions.

Income from new leases partially offset the losses.

Distribution per unit (DPU) fell by 2.3% YoY to 0.964 cents, whilst distributable income fell 2.0% YoY to $12.6m.

Occupancy also fell to 91.1% from the rate in Q2 after the REIT emptied out 120 Pioneer Road for renovation and CWT refused to renew its lease at 3 Pioneer Sector 3.

For the quarter, ESR REIT had more than 1.08 million sqft. of space renewed, with Weighted Average Lease Expiry (WALE) at 3.4 years.