FINANCIAL STATEMENTS ANNOUNCEMENT FOR THE QUARTER ENDED 30 JUNE 2017

The Directors of ESR Funds Management (S) Limited ("ESR-FM") (formerly known as Cambridge Industrial Trust Management Limited), as manager ("Manager") of ESR-REIT (formerly known as Cambridge Industrial Trust) are pleased to announce the unaudited results of ESR-REIT and its subsidiaries (the "Group") for the second quarter ended 30 June 2017.

ESR-REIT is a Singapore-based real estate investment trust constituted by the Trust Deed entered into on 31 March 2006 between ESR-FM as the Manager of ESR-REIT and RBC Investor Services Singapore Limited as the Trustee of ESR-REIT, as amended and restated. ESR-REIT was listed on the Singapore Exchange Securities Trading Limited ("SGX-ST") on 25 July 2006.

Following the change in the controlling shareholders of the manager of Cambridge Industrial Trust, Cambridge Industrial Trust Management Limited, to e-Shang Infinity Cayman Limited, a subsidiary of e-Shang Redwood Limited, in January 2017, the names of Cambridge Industrial Trust and its manager were renamed as ESR-REIT and ESR-FM respectively on 23 June 2017.

ESR-REIT's distribution policy is to distribute at least 90% of its annual distributable income, comprising income from letting of its properties after deduction of allowable expenses. The actual level of distribution will be determined at the Manager's discretion.

As at 30 June 2017, the Group has a diversified portfolio of 49 properties located across Singapore with a diversified tenant base of over 200 tenants across the following sectors: logistics/warehouse, hi-specs industrial, light industrial, general industrial and business park. The portfolio has a carrying value of approximately S$1.36 billion and a total gross floor area of approximately 8.4 million square feet.

The Group's results include the consolidation of its wholly-owned subsidiaries, ESR-MTN Pte. Ltd. ("ESR-MTN"), Cambridge SPV1 LLP ("Cambridge LLP") and Cambridge SPV2 Pte. Ltd. ("Cambridge SPV2"). The commentaries below are based on Group results unless otherwise stated.

Summary of Group's Results

2Q2017 S$'000

2Q2016 S$'000

Inc/ (Dec)

%

1H2017 S$'000

1H2016 S$'000

Inc/ (Dec)

%

27,675

28,295

(2.2)

55,412

56,660

(2.2)

19,220

21,165

(9.2)

38,912

42,658

(8.8)

12,466

14,074

(11.4)

25,572

28,586

(10.5)

0.956

1.078

(11.3)

1.960

2.190

(10.5)

Gross revenue Net property income Amount available for distribution Distribution per unit ("DPU") (cents)

Distribution and Book Closure Date Details

Distribution period

1 April 2017 to 30 June 2017

Distribution rate

0.956 cents per unit

Books closure date

21 July 2017

Payment date

29 August 2017

The Manager has determined that the distribution reinvestment plan ("DRP") will apply to the distribution for the period from 1 April 2017 to 30 June 2017. The pricing of the DRP units issued will be based on the market price less a discount of 2%, to be announced by the Manager on 24 July 2017.

1(a) Statement of Total Return together with comparative statements for the corresponding period of the immediate preceding financial year

Statements of Total Return

Note

Group

Trust

2Q2017 S$'000

2Q2016 S$'000

Inc/ (Dec)

%

2Q2017 S$'000

2Q2016 S$'000

Inc/ (Dec)

%

(a)

27,675

28,295

(2.2)

27,010

27,630

(2.2)

(1,597)

(1,297)

23.1

(1,578)

(1,279)

23.4

(1,457)

(1,663)

(12.4)

(1,457)

(1,663)

(12.4)

(2,174)

(2,093)

3.9

(2,174)

(2,093)

3.9

(3,227)

(2,077)

55.4

(3,226)

(2,074)

55.5

(8,455)

(7,130)

18.6

(8,435)

(7,109)

18.7

19,220

21,165

(9.2)

18,575

20,521

(9.5)

(b)

(1,691)

(1,769)

(4.4)

(1,691)

(1,769)

(4.4)

(c)

(435)

(477)

(8.8)

(428)

(468)

(8.5)

12

14

(14.3)

12

14

(14.3)

(d)

(5,068)

(5,488)

(7.7)

(5,068)

(5,488)

(7.7)

(7,182)

(7,720)

(7.0)

(7,175)

(7,711)

(7.0)

12,038

13,445

(10.5)

11,400

12,810

(11.0)

-

-

-

483

434

11.3

12,038

13,445

(10.5)

11,883

13,244

(10.3)

(e )

-

(64)

(100.0)

-

(64)

(100.0)

(f)

(386)

(838)

(53.9)

(40)

(442)

(91.0)

11,652

12,543

(7.1)

11,843

12,738

(7.0)

-

-

-

-

-

-

11,652

12,543

(7.1)

11,843

12,738

(7.0)

Gross revenue

Property manager's fees Property tax

Land rental

Other property expenses

Property expenses Net property income

Management fees Trust expenses Interest income Borrowing costs

Non-property expenses Net income before distributable income from subsidiary

Distribution income from subsidiary

Net income after distributable income from subsidiary

Change in fair value of financial derivatives

Change in fair value of investment properties

Total return for the period before income tax and distribution

Less: Income tax expense*

Total return for the period after income tax before distribution

*Amounts less than S$1,000

Distribution Statements

Group

Trust

Note

2Q2017 S$'000

2Q2016 S$'000

Inc/ (Dec)

%

2Q2017 S$'000

2Q2016 S$'000

Inc/ (Dec)

%

(g)

11,652

12,543

(7.1)

11,843

12,738

(7.0)

814

1,531

(46.8)

623

1,336

(53.4)

12,466

14,074

(11.4)

12,466

14,074

(11.4)

(h)

0.956

1.078

(11.3)

0.956

1.078

(11.3)

3.824

4.312

(11.3)

3.824

4.312

(11.3)

Total return for the period after income tax before distribution

Net effect of non-tax deductible items

Net income available for distribution for the period Distribution per unit (cents): For the period Annualised Notes:

  1. ESR-REIT registered gross revenue of S$27.7 million and net property income of S$19.2 million for 2Q2017, representing respective 2.2% and 9.2% decrease on the corresponding quarter last year.

    The lower net property income in 2Q2017 was mainly driven by the following:

    • loss of revenue during the transition phase of the properties moving from single- tenanted to multi-tenanted;

    • increase in property operating expenses (property tax, land rental, maintenance costs and other property expenses) as a result of the above conversions;

    • higher maintenance costs;

    • property divestments in FY2016; and

    • one-off accrual of costs related to the fire at 30 Toh Guan Road.

  2. The Manager has elected to receive its management fee wholly in cash for 2Q2017. Management fee decreased in 2Q2017 due to lower assets under management.

  3. Trust expenses comprised statutory expenses, professional fees, compliance costs, listing fees and other non-property related expenses. Trust expenses for 2Q2017 were lower mainly due to lower statutory and consultancy fees than 2Q2016.

Cambridge Industrial Trust published this content on 13 July 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 12 July 2017 22:44:05 UTC.

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