SPH Reit announces distribution per unit of 1.39 cents for Q2

Unitholders of SPH Real Estate Investment Trust (SPH Reit) will be receiving a distribution of 1.39 cents per unit for the trust's second quarter.

This is 4.5 per cent higher than had been initially forecast when the trust launched its initial public offering.

SPH Reit Management, the manager of the trust, said its income distributable to unitholders was $34.9 million for the three months ended Feb 28, 5.2 per cent higher than forecast.

Net property income was $38.8 million, 4.6 per cent higher than forecast.

SPH Reit Management said the net property income of Paragon mall, one of the trust's properties, exceeded forecasts by 2.4 per cent, while that of The Clementi Mall was 1.7 per cent higher than predicted.

Both Paragon and The Clementi Mall were fully leased during the period. The Clementi Mall has completed the first lease renewal cycle and more than 90 per cent of the tenants, going by net lettable area, have renewed their leases for another term.

From the Reit's debut on the manboard on July 24 to the end of its second quarter, gross revenue for both properties was in line with forecasts.

Ms Susan Leng, the chief executive of SPH Reit Management, said: "SPH Reit has delivered another quarter of strong operating and financial performance that exceeded forecast in the second quarter.

"Barring any unforeseen circumstances, the two retail properties are expected to turn in a steady performance. To sustain returns to unitholders, we will continue to strengthen the partnership with our tenants and pursue opportunities to enhance the premier positioning of the malls."