Advanced Theory & Practice of Bonds

IBF Recognized Under FTS

Two-day immersive course on bonds designed for private bankers and advisors.

ESR REIT reported a 1.7% YoY increase in distribution per unit (DPU) to S$0.00712 for Q3 on the back of a 7.2% YoY increase in gross revenues to S$61.1mn and an 8.6% rise in net property income (NPI) to S$43.9mn. The manager attributed the growth to the acquisition of 46A Tanjong Penjuru and the absence of pandemic-related rental rebate provisions. Portfolio occupancy rate remained resilient at 91.2% above JTC’s industrial average of 90.1%. The manager said that it has a “well-staggered” debt maturity profile with a weighted average maturity of 2.6Y and aggregate leverage of 41.3%. ESR REIT’s SGD 4.6% Perps traded stable at 99.21 yielding 5.41% currently.

Another industrial REIT from Singapore, Mapletree Industrial Trust (MIT) reported a 3.47% YoY increase in DPU to S$0.0347 and a 21.3% growth in income distributable to unitholders to S$88.4mn. NPI jumped a strong 47.4% to S$120.3mn as gross revenues grew 50.5% to S$155.6mn on the back of revenue consolidation from 14 US data centres that were previously held by JV Mapletree Redwood Data Centre Trust, 29 data centres in the US acquired for $1.32bn and a data centre in Virginia, Business Times reported. Portfolio occupancy in Q3 fell to 93.7% from 94.3% in Q2 primarily due to reduced occupancies in the North America portfolio. Weighted average lease to expiry (WALE) increased to 4.3Y from 3.7Y given the long WALE of the 29 US data centres (7.6Y). Loans taken to fund the US acquisition led to the aggregate leverage ratio rising to 39.6% from 31%. Overall, AUM grew to S$8.5bn from S$6.7bn with data centres now accounting for 52.9%. MIT’s SGD 3.15% Perps have been trending lower from ~102 levels in mid-September to 99.89 currently, yielding 3.18%.

Keppel REIT’s DPU from operations for 9M rose 20.8% YoY to S$159.9mn primarily due to contributions from the Victoria Police Centre in Melbourne, Pinnacle Office Park in Sydney and Keppel Bay Tower in Singapore. This was partially offset by the impact of the divestment of 275 George Street in Brisbane, where proceeds were used to pay down debt and lower its aggregate leverage to 37.6%. NPI also jumped 42.6% YoY to S$116.8mn. The REIT’s weighted average debt maturity increased to 3.3Y as it raised S$150mn via new 7Y bonds priced at a yield of 2.07% in September. Its portfolio committed occupancy stood at 97.1% and its WALE at 6.1Y. Keppel REIT’s SGD 3.15% Perps traded steady at 97.97 yielding 3.72%.
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