Fourth-quarter distributable income at SPH Reit dipped 4 per cent to $33.6 million although the figure for the year rose 1.6 per cent to $138.5 million on the back of higher rental income at its two malls.

Distribution per unit (DPU) for the quarter ended Aug 31 was unchanged at 1.39 cents and rose 0.7 per cent to 5.47 cents for the year.

Based on the closing price of 96 cents at Aug 31, the annualised yield was 5.7 per cent. Fourth-quarter DPU will be paid on Nov 16.

"DPU growth was supported by healthy rental reversion of 8.6 per cent at portfolio level, and active management of operating expenses," the Reit manager's chief executive, Ms Susan Leng, told a briefing yesterday.

Gross revenue rose 1.4 per cent to $205.1 million for the year while net property income rose 3.3 per cent to $155.6 million, with increases across its two malls.

Gearing remained low at 25.7 per cent and with about 85 per cent of the debt at fixed rate, she added. "This gives SPH Reit debt headroom for asset enhancement initiatives, for asset acquisition opportunities when they arise."

While the Reit has a property for which it has first right of refusal - The Seletar Mall, jointly developed by its sponsor Singapore Press Holdings and United Engineers - the mall needs time to stabilise though it has been well-received with a 100 per cent occupancy rate, said Ms Leng.

"We take a two-pronged approach to acquisitions - Government Land Sales sites... and private treaty," she added. It also considers overseas acquisitions.

Paragon and The Clementi Mall had 100 per cent occupancy during the year. Net asset value per unit at Aug 31 was 95 cents, up from 93 cents a year ago. The counter closed up a cent to 96.5 cents yesterday.