SPH Reit to focus on sustainable rental income

SPH Reit Management's chief executive Susan Leng Mee Yin and chairman, non-executive and independent director Leong Horn Kee at the SPH Reit annual general meeting, held virtually yesterday. ST PHOTO: MARK CHEONG
SPH Reit Management's chief executive Susan Leng Mee Yin and chairman, non-executive and independent director Leong Horn Kee at the SPH Reit annual general meeting, held virtually yesterday. ST PHOTO: MARK CHEONG

SPH Reit will focus on providing "sustainable rental income" by minimising vacancies, it said at its annual general meeting (AGM) yesterday.

It added that it will keep supporting tenants through the coronavirus pandemic so its assets can be ready to capture opportunities when the economy picks up.

Ms Susan Leng Mee Yin, chief executive of SPH Reit Management, said: "We will continue to work closely with our tenants in a targeted manner... so that both landlords and tenants can be ready for recovery."

This is in the hope of preserving long-term returns for unit holders, she said.

Rental relief of $39.9 million has been granted to help the Reit's tenants during the pandemic.

Tenancies for its Australian assets have recovered strongly, hitting close to pre-Covid-19 levels, but tenancies in Singapore are turning around more slowly.

The real estate investment trust's portfolio has maintained its occupancy rate at 97.7 per cent.

The Reit also unveiled a growth strategy to provide unit holders with regular, stable distributions.

The strategy includes continually optimising the tenant mix, renovation work and marketing plans, Ms Leng said.

There will also be a right of first refusal for the Reit's sponsors' future income-producing properties used primarily for retail purposes in the Asia-Pacific.

Ms Leng said that uncertainties around the pandemic mean the impact on the Reit's financial performance over the coming months cannot be determined at this stage.

SPH Reit said earlier in response to questions from the Securities Investors Association (Singapore) that its portfolio assets in the medium term will remain primarily Singapore-based.

It has not set a targeted capital allocation by geography, to maintain flexibility.

THE BUSINESS TIMES

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A version of this article appeared in the print edition of The Straits Times on November 27, 2020, with the headline SPH Reit to focus on sustainable rental income. Subscribe