SPH Reit posts second-quarter DPU of 1.40 cents, up 0.7% from last year

SINGAPORE - SPH Reit Management, the managers of SPH Reit announced that income available for distribution to unitholders was $36.3 million for the second quarter ended Feb 28, up 4 per cent year-on-year.

Distribution per unit was 1.40 cents for the quarter, an increase of 0.7 per cent from the same period a year ago. It will be paid to unitholders on May 15.

Gross revenue for the quarter rose 2.8 per cent from the same period a year ago to $52.5 million, while net property income climbed 3.7 per cent to $40.3 million.

These improvements came on the back of a "steady and resilient operational" performance at both Paragon and The Clementi Mall, SPH Reit Management said.

"Both Paragon and The Clementi Mall are fully leased. Paragon continues to achieve consistently robust performance with rental uplift of 11.6 per cent for new or renewed leases in the first half of 2015."

There were new leases at The Clementi Mall taking up 2 per cent of the shopping complex's total net lettable area that were signed for a lower rent by 8.8 per cent, said the managers, "due to fine-tuning of tenancies to strengthen the offering to a wider base of shoppers".

Ms Susan Leng, the chief executive of SPH Reit Management, said: "SPH Reit has delivered another quarter of healthy operating and financial performance."

At Paragon, new-to-market international brands were added to the mall to "enhance its premier positioning and refresh the offering to shoppers", added Ms Leng, while The Clementi Mall is "well-positioned as a necessity mall in an established population catchment area".

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