SPH Reit DPU for Q2 kept at 1.4 cents

The Clementi Mall and Paragon continued to demonstrate resilience, with positive rental reversion and full occupancy, according to the manager of SPH Reit.
The Clementi Mall and Paragon (above) continued to demonstrate resilience, with positive rental reversion and full occupancy, according to the manager of SPH Reit.ST, BH FILE PHOTOS

Quarterly income available for distribution up 2.4% from year earlier to $37.3m

Second-quarter distribution per unit (DPU) at SPH Reit, a real estate investment trust sponsored by media group Singapore Press Holdings (SPH), held steady at 1.4 cents.

Income available for distribution to unitholders rose 2.4 per cent from a year earlier to $37.3 million for the three months ended Feb 28, the Reit manager said yesterday.

The second-quarter distribution will be paid on May 22.

Net property income for the quarter rose 5.2 per cent year-on- year to $42.7 million, mainly due to proactive management of utility contracts and lower property taxes.

Last year's numbers included a one-off provision for prior years' property taxes.

Excluding the effect of the property tax provision, net property income rose by a smaller 2.9 per cent over last year.


The Clementi Mall and Paragon continued to demonstrate resilience, with positive rental reversion and full occupancy, according to the manager of SPH Reit. ST, BH FILE PHOTOS

Gross revenue for the quarter increased 1.7 per cent to $54 million, on the back of higher rental income.

Both properties in the Reit "continued to demonstrate resilience, with positive rental reversion and full occupancy", the Reit manager said.

Paragon achieved a moderate rental uplift of 4.3 per cent for new and renewed leases in the first half of the year.

With about 85 per cent of The Clementi Mall's leases expiring this year, around 74 per cent by gross rental income have been renewed ahead of time.

The mall recorded a positive rental reversion of 8.3 per cent for the leases expiring in the first six months of the year, representing 30 per cent of its second renewal cycle.

"SPH Reit has continued to deliver resilient financial and operating performance despite the prevailing economic headwinds and weak consumer sentiment," said Ms Susan Leng, the chief executive of SPH Reit Management.

"We continue to curate a tenancy mix that will strengthen the positioning of each mall. Our tenants are the cornerstone of our business."

Besides introducing new tenants, the Reit manager also works with existing ones to rejuvenate their concepts and the ambience of their stores, Ms Leng added.

A version of this article appeared in the print edition of The Straits Times on April 11, 2017, with the headline 'SPH Reit DPU for Q2 kept at 1.4 cents'. Print Edition | Subscribe