Suntec Reit posts 2.3% rise in Q1 DPU

The committed occupancy for One Raffles Quay was 100 per cent.
The committed occupancy for One Raffles Quay was 100 per cent. PHOTO: ST FILE

SINGAPORE - Suntec Real Estate Investment Trust (Suntec Reit) reported a 2.3 per cent rise to 2.425 Singapore cents in distribution per unit (DPU) for the first quarter compared to 2.371 cents for the same period a year ago.

For the three months to March 31, 2017, Suntec Reit's gross revenue grew 12.0 per cent to S$88.4 million year on year. This was mainly due to the rental contribution of 177 Pacific Highway which received practical completion in August 2016. This boosted net property income by 14.6 per cent to S$61.8 million.

As at end-March, the Reit's Singapore office portfolio achieved an overall committed occupancy of 99.4 per cent. The committed occupancies for Suntec City Office, One Raffles Quay and Marina Bay Financial Centre Properties were at 99 per cent, 100 per cent and 99.8 per cent respectively.

On Suntec REIT's office performance, Mr Chan Kong Leong, CEO of the Reit's manager, said, "We will continue our proactive asset management to maintain our high occupancy level as the Singapore office market is expected to remain under pressure given the impending supply and shadow space."

In Australia, the committed occupancies for 177 Pacific Highway and Southgate Complex (Office) were 100 per cent and 89.7 per cent respectively as the same time. With the new leases signed at Southgate Complex, the committed occupancy for its Australian office portfolio improved to 97 per cent.

"We expect the occupancy in Australia to strengthen as demand continues to be positive in the Sydney and Melbourne markets amidst the stock withdrawals and low level of new supply," said Mr Chan.

For the Singapore retail portfolio, the overall committed occupancy as at end-March was 98.3 per cent. Compared against the previous quarter, the committed occupancy for Suntec City Mall improved to 98.4 per cent, while that for Marina Bay Link Mall stood at 97.4 per cent. In Australia, the committed occupancy for Southgate Complex (Retail) was 88.4 per cent.

Mr Chan said development works for the new Grade A commercial building at 9 Penang Road is currently on track and building plan approval obtained.