SINGAPORE - Higher rental income from shopping mall Paragon helped to lift SPH Reit's distribution for the third quarter, its manager said on Thursday.
The reit, which also owns The Clementi Mall, reported a distributable income of $35 million for the three months to May 31, an increase of 1.1 per cent over the same period last year.
This translates to a distribution per unit of 1.36 cents, up 0.7 per cent, to be paid out on Aug 16.
Gross revenue climbed 1.9 per cent to $52.2 million, on the back of higher rental income achieved from Paragon.
Property operating expenses were 2.5 per cent higher from the same period a year ago, at $12.2 million, mainly due to higher property tax, maintenance and marketing expenses.
The increase was cushioned by savings in utilities from lower tariff rate and more efficient energy consumption.
Net property income, as a result, inched up 1.8 per cent to $40 million.
SPH Reit noted that the retail scene remains challenging.
Nonetheless, the reit manager said it has a portfolio of two "high quality and well-positioned retail properties in prime locations".
"Paragon remained resilient and has turned in a steady performance through previous economic cycles. The Clementi Mall continued to attract steady footfall.
"The manager will continue to proactively manage the properties to deliver sustainable returns while seeking new opportunities to create value for unitholders," it said.