Suntec Reit Q2 DPU stable as revenue drop

Visitors circle the water fixture in the middle of the Fountain of Wealth at Suntec City.
Visitors circle the water fixture in the middle of the Fountain of Wealth at Suntec City.PHOTO: ST FILE

SINGAPORE - Suntec Reit announced a distribution per unit of 2.501 cents, largely unchanged from 2.5 cents a year earlier, due partly to a capital distribution from the Park Mall divestment.

The Reit reported a 3.1 per cent drop year on year in gross revenue to S$78.94 million for the three months to June 30, owing to the sale of the mall.

The impact was however partly mitigated by the opening of Suntec City mall Phase 3 after the completion of its enhancement works.

Net property income fell 7.5 per cent to S$52.67 million .

"The Singapore office market remained sluggish in the second quarter. Demand continued to be weak amidst an uncertain global economic outlook," Suntec Reit's manager said in the results announcement on Thursday (July 21), adding that the local retail sector is also facing challenges.

But performance of the reit's portfolio, which assets including the Suntec City and prime office spaces across Marina Bay, is expected to remain stable. Overall Suntec City Mall occupancy was 97.5 per cent as at June 30, while office occupancy is 98.9 per cent.

Suntec Reit fell 1.5 cents or 0.83 per cent to S$1.785 ahead of the results release.