ESR-REIT, a prominent Singapore-based real estate investment trust, has released crucial updates regarding its upcoming distributions, trading arrangements, and taxation policies. These announcements, aimed at unitholders and investors, may influence share prices as they encompass financial entitlements, tax obligations, and operational changes.

Key Distribution Details

The Manager of ESR-REIT disclosed a taxable income distribution of 0.275 cents per unit for the main ESR-REIT counter and 0.195 cents per unit for the temporary ESR-REIT A counter. These distributions cover the periods of 11 November 2024 to 31 December 2024 and 29 November 2024 to 31 December 2024, respectively. The distributions will be paid on or around 14 March 2025.

The record date for determining entitlements is 5 February 2025 at 5:00 p.m., while the ex-distribution date is 4 February 2025. After the aggregation of the temporary ESR-REIT A counter with the main ESR-REIT counter, trading under the combined main counter will commence on 6 February 2025.

Taxation Rules for Unitholders

The taxation framework for this distribution contains critical details for unitholders:

• Exempt Categories: Individual unitholders, CPF and SRS investors, Singapore-incorporated and tax-resident companies, statutory boards, charities, town councils, and international organizations exempt from tax under specific Singapore laws will receive gross distributions without tax deductions.
• 10% Tax Rate: Foreign non-individual investors and foreign funds meeting defined criteria will have tax deducted at a reduced rate of 10%.
• Corporate Tax Rate: For all other unitholders, tax will be deducted at the prevailing corporate tax rate.

Eligible unitholders in certain categories must submit the “Declaration for Singapore Tax Purposes Form A” or “Form B” (for depository agents) by 19 February 2025 to receive distributions at the appropriate tax treatment. Failure to submit the forms will result in automatic tax deductions.

Operational and Financial Stability

ESR-REIT confirmed that it retains sufficient financial resources to meet its liabilities following the distribution payout. This assurance underscores the trust’s financial health amid ongoing market operations.

Potential Price-Sensitive Updates

Several factors outlined in the announcement could influence ESR-REIT’s share price:

• The aggregation of trading counters, which may consolidate liquidity and impact trading dynamics.
• The tax exemption framework, particularly for foreign investors and institutional funds, which could potentially attract more investment interest.
• The confirmed financial stability of ESR-REIT post-distribution, which reassures investors of its operational resilience.

Investors should monitor these developments closely as they could influence market sentiment and valuation.

Important Dates to Remember

Unitholders and investors should take note of the following key dates:

• Ex-Distribution Date: 4 February 2025
• Record Date: 5 February 2025
• Dispatch of Tax Declaration Forms: 11 February 2025
• Deadline for Tax Declaration Form Submission: 19 February 2025
• Distribution Payment Date: 14 March 2025

About ESR-REIT

ESR-REIT is a leading Asia-Pacific REIT, with a diversified portfolio of logistics and industrial properties across Singapore, Australia, and Japan. As of December 2024, its total assets stand at approximately S\$6.0 billion, with a portfolio spanning 72 properties. ESR-REIT is managed by ESR-REIT Management (S) Limited and sponsored by ESR Group, a top global real estate investment manager.