ESR-REIT   

Time to internalize Manager

Sold at a loss after holding it almost 10 years! A toxic stock. Waste time. Dividend % looks good becos of the abysmal stock price lor. And all the DRP, right issues, acquisition via shares issuances and the craps!   

 

ESR Yatomi Kisosaki Distribution Centre (DC) in Nagoya was acquired for $328.0 million.
Acquisition Fee: An acquisition fee of approximately S$3.3 million was paid to the manager in units.
This works out to be 1% of the asset value. Very lucrative and easy money for the manager. 

luckyguy3      ( Date: 19-Feb-2026 06:28) Posted: Sabana reit shareholders dodged a bullet by resisting take over bid by ESR reit... luckyguy3      ( Date: 19-Feb-2026 06:27) Posted: every acquisition they earned commission so u think they care about shareholders? As long as they keep " expanding" , they keep earning commissions, NTA/DPU/Share price dropping so what?

 

Sabana reit shareholders dodged a bullet by resisting take over bid by ESR reit...

luckyguy3      ( Date: 19-Feb-2026 06:27) Posted: every acquisition they earned commission so u think they care about shareholders? As long as they keep " expanding" , they keep earning commissions, NTA/DPU/Share price dropping so what? Smallinvestor      ( Date: 19-Feb-2026 04:29) Posted: How those useless one managed to survive for so long in the company? How?

 

Why u n r ask d BS why they r so useless

 

every acquisition they earned commission so u think they care about shareholders? As long
as they keep " expanding" , they keep earning commissions, NTA/DPU/Share price dropping so what?

Smallinvestor      ( Date: 19-Feb-2026 04:29) Posted: How those useless one managed to survive for so long in the company? How?

 

How those useless one managed to survive for so long in the company? How?

 

yes when TP is $1 and share price is $1

NickyLo      ( Date: 18-Feb-2026 16:57) Posted: Yea d BS price becoming more and more accurate about Esr reit.   Got chance to be correct

 

Yea d BS price becoming more and more accurate about Esr reit.   Got chance to be correct

 

Just look at DBS TP and it explains everything about ESR-reit and DBS so called analyst.

Alignment      ( Date: 17-Feb-2026 10:36) Posted: I reread the DBS report for ESR REIT that had a S$3.20 price target. The report takes a positve view on DPU forecasting growth going forward. It also takes a positive view in terms of the impact of AUM growth for unitholders. If you share these views strongly, I think a S$3.20 target is reasonable. It seems likely for instance that the DBS report is not anticipating a significant negative impact to valuation from equity issuance to achieve the S$8bn AUM target, but someone should ask the analyst directly what their thoughts are on that. As to differing P/NAV ratios of different REIT subsectors, the cost of capital used by professional valuers in calculating the NAV is different for different REIT subsectors. For instance commerical buildings use the lowest level, whereas industrial REITs use the highest, reflecting valuers relative opinions on asset risk i.e. commercial properties are seen as being the lowest risk. These relative opinions have been in place for a long time, and arguably do not reflect the current reality e.g. recent developments like work from home impacting commercial. In contrast, current share prices reflect a different view to this issue taken by the stock market in contrast to the professional valuers. The fact industrial REITs (except Alpha) trade at a premium to NAV whereas commercial REITs generally trade at a discount indicates that the market does not think industrial REITs are not as risky relative to commercial REITs as the professional valuers think they are as implied by the relative cost of capital assumptions they use. For what it is worth I lean towards the market view rather than the valuer view. Another way of saying this is that I put more emphasis on the DPU yield than P/NAV, especially when it comes to cross sub sector preferences e.g. I prefer industral REITs to commercial REITs at current prices.

 

I reread the DBS report for ESR REIT that had a S$3.20 price target. The report takes a positve view on DPU forecasting growth going forward. It also takes a positive view in terms of the impact of AUM growth for unitholders. If you share these views strongly, I think a S$3.20 target is reasonable. It seems likely for instance that the DBS report is not anticipating a significant negative impact to valuation from equity issuance to achieve the S$8bn AUM target, but someone should ask the analyst directly what their thoughts are on that.

As to differing P/NAV ratios of different REIT subsectors, the cost of capital used by professional valuers in calculating the NAV is different for different REIT subsectors. For instance commerical buildings use the lowest level, whereas industrial REITs use the highest, reflecting valuers relative opinions on asset risk i.e. commercial properties are seen as being the lowest risk. These relative opinions have been in place for a long time, and arguably do not reflect the current reality e.g. recent developments like work from home impacting commercial. In contrast, current share prices reflect a different view to this issue taken by the stock market in contrast to the professional valuers. The fact industrial REITs (except Alpha) trade at a premium to NAV whereas commercial REITs generally trade at a discount indicates that the market does not think industrial REITs are not as risky relative to commercial REITs as the professional valuers think they are as implied by the relative cost of capital assumptions they use. For what it is worth I lean towards the market view rather than the valuer view. Another way of saying this is that I put more emphasis on the DPU yield than P/NAV, especially when it comes to cross sub sector preferences e.g. I prefer industral REITs to commercial REITs at current prices.

 

Why target price are buy call and above $3 for esr reit when the nav is only 2.55. Also I saw the p/b of different reits are different, e.g retail reit, office reit, dc reit, industrial reit, hospitality reit are all different. Some are below nav and are above nav.

 

Clearly one of the worst managed REITs in Singapore ... and the best thing investors can do is to vote with their feet and exit this stock. The original Cambridge REIT was a star industrial REIT .. and after this incompetent acquirer acquired it and merged it with ESR, it has been a continuing disaster of course enhanced by the interest rate hit. They have been diluting existing shareholders equity without any consideration for those who have stuck with them. Clearly time to rotate out to far better options like CICT, CIT or MIT. ESR is a loser.

 

If you are asking why companies sometimes make bad decisions, and why do investors allow them to do so, I do not think most companies or investors set out to do this. But as to why this happens I would suggest the following reasons, depending on the specific situation:

1) Neither running companies and making money from investing is easy. The marketplace is competitive, and most active investors fail to beat the indices
2) Bad governance / skewed incentive structures that allow this to happen without punishment
3) Many people running companes or investing money are just not that good as you think they are/should be

 

I ask this because, those analysts and their companies, like thse big bank and trading companies reputation are at stakes. Those analysts are professional. Also those big fish should have felt the fundamental and the share price falling. Why are they not making noises and sack the management if they are not capable? Preferential offering price was high, not easy to gain from it. I think maybe the only one who gain are those who are just getting salary and dont know what to do when the share prices are falling and those perpetual securities holders who enjoy the high interest return. The reit manager are getting management fees also from those acquisition and disposal. When share prices are lower, they will be getting more shares, but their holding shares will also fall and dilute. Don't think they purposely want it this way. So why this happen? Maybe there are something happening that we don't know.

Smallinvestor      ( Date: 16-Feb-2026 11:25) Posted: Just wondering how those analysts still having buy call for esr reit amd target price above $3? Dbs 4 Feb 2026 (BUY with TP of SGD3.20), maybank 5 feb 2026(Maybank Securities is keeping her ?buy? call on ESR-REIT at an unchanged target price of $3.00 following the REIT?s FY2025 ended December 2025 results.), CGS International: S$3.43 (as of February 2026),

 

Just wondering how those analysts still having buy call for esr reit amd target price above $3? Dbs 4 Feb 2026 (BUY with TP of SGD3.20), maybank 5 feb 2026(Maybank Securities is keeping her ?buy? call on ESR-REIT at an unchanged target price of $3.00 following the REIT?s FY2025 ended December 2025 results.), CGS International: S$3.43 (as of February 2026),

 

Overpriced Acquisitions from right issue/private placement at a discount to share price
resulted in huge dilution of shares resulting in lower DPU/NTA which resulted in
lower share price.
Then due to lower share price, the next acquisition, right issue/private placement at a discount to 
even lower share price resulted in even larger dilution of shares which then resulting in lower
DPU/NTA which resulted in even lower share price..
Viscious cycles. Now share price is only 24 cents(adjusted for 10-1 consolidation), they will have to issue
rights or private placement at discount, say 22 cents. Then further dilute the shares and then lowering the 
DPU/NTA even more.. I think by the time AUM hits $8billion, share price will be 15 cents.

asianguy      ( Date: 16-Feb-2026 09:43) Posted: Most of the time when they buy or sell assets in the name of " 4R strategy" , the NTA / DPU would drop. Can we list down how much commission/fee do the manager earned each time they buy or sell assets ? Someone ever criticise Sabana was holding on to many aging assets and would get worse as it ages, but facts today prove otherwise. If you review again those information given trying to convince investors during the failed ESR/Sabana merger. you would realize how wrong are they.

 

I think this ESR-reit is one of the worst managed reit, something like Del Monte expanding until almost bankrupt.

And the CEO just said this last Oct during the 3Q/25 results, just a few mths ago because he wanted to focus on improving
the DPU and NTA. Then now suddenly he wants to increase AUM to S$8billion. How to trust him?

 

Alignment      ( Date: 15-Feb-2026 21:54) Posted: So they aim to increase AUM to S$8bn in 5 years - thar is a S$2.8bn increase. Assume 40% of that increase is debt funded, so they need 60% new equity, which is S$1.68bn! The market cap today is only S$2bn!  Allowing for discounts that could be a 1 for 1 issuance!

 

Most of the time when they buy or sell assets in the name of " 4R strategy" , the NTA / DPU would drop.
Can we list down how much commission/fee do the manager earned each time they buy or sell assets ?
Someone ever criticise Sabana was holding on to many aging assets and would get worse as it ages, but facts today prove otherwise.
If you review again those information given trying to convince investors during the failed ESR/Sabana merger. you would realize how wrong are they.   

 

So they aim to increase AUM to S$8bn in 5 years - thar is a S$2.8bn increase.

Assume 40% of that increase is debt funded, so they need 60% new equity, which is S$1.68bn! The market cap today is only S$2bn! 

Allowing for discounts that could be a 1 for 1 issuance!

 

The scary thing is just last year they say they want to focus on increasing the NTA/DPU and not aiming to fund raise and expand, 
suddenly now they say they want to expand AUM to 8 billion.

And u know what happened everything they " expand" .. NTA and DPU dropped. They destroy value for shareholders all these years.
Very easy to know how bad the management is when u compare side by side with Sabana reit which has maintain their NTA all these years
and increase their DPU.

I wonder why shareholders of ESR reit so understanding one.. never whack the management during AGM.. they can use Sabana reit as an example to challenge the CEO. And shareholders should convene an EGM to set a target for the management team, eg: NTA/DPU increase by 10% with 2 years if not management has to resign etc..
the CEO 

Smallinvestor      ( Date: 13-Feb-2026 20:33) Posted: --- Post Removed by User ---