ESR-Logos REIT's NPI drops 10.8% post non-core asset divestments
Gross revenue also dropped 8.9% in 1Q24.
ESR-Logos REIT saw its net property income (NPI) drop 10.8% year-on-year to $62.9m in Q1 2024.
Gross revenue also declined by 8.9% YoY to $89m during the same period.
The decline is attributed to the divestment of 10 non-core assets in FY2023. With these assets included, the NPI would have decreased by only 0.2% and gross revenue would have increased by 1.3%.
Meanwhile, the REIT has reported a positive rental reversion of 10.8% for 1Q24, an increase of 3.5% from the previous year. However, its occupancy rate for the period has decreased slightly to 91.7% from 92.1% last year.
On a pro forma basis, gearing remained at 36.3%, assuming the divestment of 182-189 Maidstone Street was completed on 31 March and net proceeds were fully used to repay debt and a $140m (A$160m) BBSY interest rate swaps entered into on 18 April and 19 April were effective on 31 March.