SPH Reit maintains DPU of 1.4 cents for second quarter

SINGAPORE - SPH Reit on Monday reported a distribution per unit (DPU) of 1.4 cents for the second quarter ended Feb 29, unchanged from the same period a year ago.

The DPU will be paid out on May 13.

Income available for distribution to unitholders for the three months came in at S$36.4 million, a marginal 0.2 per cent increase over the S$36.3 million in the same period a year ago, said its manager.

Gross revenue climbed 1.2 per cent to S$53.1 million on the back of higher rental income from the two properties under management, Paragon and The Clementi Mall.

Net property income inched up 0.9 per cent at S$40.6 million, after taking into account an additional one-off provision for property tax in the previous year.

Excluding the provision, net property income grew 3.2 per cent to S$41.5 million.

The manager said both Paragon and The Clementi Mall continued to "demonstrate resilience and achieved positive rental reversion".

Paragon's occupancy was 99.9 per cent as at Feb 29. It achieved a moderate rental uplift of 4.3 per cent for new and renewed leases in the first half of the year, in spite of the prevailing weak retail sentiment.

The Clementi Mall remained fully leased, with positive rental reversion of 3.1 per cent in the same period.

Ms Susan Leng, chief executive of SPH Reit Management, said: "SPH Reit has continued to deliver a steady performance amid modest economic outlook and challenging retail environment.

"We remain focused on opportunities to create value and strengthen long-term sustainability of the properties. Barring any unforeseen circumstances, the two properties are expected to remain resilient, and turn in a steady performance."

Shares of SPH Reit units closed unchanged at 97 Singapore cents on Monday, before the results were announced.

tsjwoo@sph.com.sg