SPH Reit numbers perk up in Q3

300 unit-holders attending the inaugural annual general meeting (AGM) of the Singapore Press Holdings (SPH) Reit on Nov 28, 2014.
300 unit-holders attending the inaugural annual general meeting (AGM) of the Singapore Press Holdings (SPH) Reit on Nov 28, 2014. PHOTO: ST FILE

SPH Reit - the real estate investment trust sponsored by Singapore Press Holdings - posted improved numbers for the third quarter yesterday.

Income available for distribution came in at $34.6 million, up 2 per cent over the same period a year ago.

Gross revenue improved 1.6 per cent to $51.2 million in the three months to May 31, thanks to higher rental income from Paragon and The Clementi Mall.

Net property income increased by 4.3 per cent to $39.3 million.

Distribution per unit was maintained at 1.35 cents, the same as last year.

This will be paid on Aug 14. Aggregate distribution per unit came in at 4.08 cents, up on last year's distribution by 1 per cent.

  • AT A GLANCE

  • GROSS REVENUE: $51.2 million (+1.6%)

    NET PROPERTY INCOME: $39.3 million (+4.3%)

    DISTRIBUTION PER UNIT: 1.35 cents (unchanged)

Annualised distribution yield based on $1.04 - the closing price on the last trading day of the third quarter - worked out to 5.25 per cent.

While The Clementi Mall remained fully leased, Paragon's occupancy was 99.8 per cent as at May 31 after an unexpected lease termination of an office unit, although it is fully committed now.

Paragon recorded rental increases of 9.8 per cent for new or renewed leases in the year-to-date.

The Clementi Mall recorded a negative rental reversion of 11.4 per cent on 3.4 per cent of total net lettable area as it continues to balance the tenancy mix and strengthen the offering to a wider base of shoppers.

To mitigate exposure to interest rate risks, the Reit has entered into interest rate swaps to fix $255 million and increase the percentage of total borrowing on fixed interest rates from 54.7 per cent to 84.7 per cent.

Ms Susan Leng, chief executive of SPH Reit's manager, said in a statement: "SPH Reit has continued its resilient performance amid challenging retail environment. Our asset enhancement programme will create additional lettable space, which enables us to work with some tenants to expand their presence, thereby strengthening their positions in Singapore."

Barring any unforeseen circumstances, the two retail properties are expected to remain resilient and turn in a steady performance.

SPH Reit units yesterday closed unchanged at $1.045. The results were released after the market closed.

A version of this article appeared in the print edition of The Straits Times on July 08, 2015, with the headline 'SPH Reit numbers perk up in Q3'. Print Edition | Subscribe