SPH Reit's 3Q net property income rises 4.3 per cent

SPH Reit Management, which manages Paragon shopping mall on Orchard Road (pictured), announced on Tuesday that income available for distribution came in at $34.6 million for the third quarter.
SPH Reit Management, which manages Paragon shopping mall on Orchard Road (pictured), announced on Tuesday that income available for distribution came in at $34.6 million for the third quarter.PHOTO: ST FILE

SINGAPORE - SPH Reit Management announced on Tuesday that income available for distribution came in at $34.6 million for the third quarter. This marked an increase of 2 per cent compared with the same period a year ago.

Gross revenue improved by 1.6 per cent to $51.2m in the three months ended May 31. This was due to higher rental income from both Paragon and The Clementi Mall.

Net property income increased by 4.3 per cent to $39.3m during the same period.

Distribution per unit for third quarter was maintained at 1.35 cents, same as last year. This will be paid on Aug 14.

Aggregate distribution per unit came in at 4.08 cents year-to-date, higher than last year's distribution by 1 per cent.

Annualised distribution yield based on $1.04 per unit fell by 1.3 per cent to 5.25 per cent.

While 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 continues to achieve consistently robust performance with rental uplift of 9.8 per cent for new or renewed leases 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.

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 program will create additional lettable space which enables us to work with some tenants to expand their presence thereby strengthening their positions in Singapore."

New tenants have been introduced to refresh the mall's offering and to enhance shoppers' experience. Barring any unforeseen circumstances, the two retail properties are expected to remain resilient and turn in a steady performance, she added.