Suntec Reit reports 2.1% drop in DPU on enlarged unit base

Distributable income for the three months ended Sept 30 was up 2.4 per cent at $65.9 million.
Distributable income for the three months ended Sept 30 was up 2.4 per cent at $65.9 million. PHOTO: ST FILE

Suntec Real Estate Investment Trust recorded a 2.1 per cent drop in third-quarter distribution per unit (DPU) of 2.483 cents, owing to an enlarged unit base following the issuance of about 95.7 million new units in May.

Distributable income for the three months ended Sept 30 was up 2.4 per cent at $65.9 million.

Gross revenue rose by 10.6 per cent to $91.1 million while net property income increased by 11.6 per cent to $63.9 million, mainly owing to the rental contribution of 177 Pacific Highway, which received practical completion in August last year, and higher contribution from Suntec Singapore.

For the first nine months, distributable income rose by 3.2 per cent to $193.7 million. The corresponding DPU of 7.401 cents was a marginal 0.1 per cent lower.

"Suntec Reit continues to reap the benefits from the diversification strategy into Australia," said Mr Chan Kong Leong, chief executive of the Reit manager.

"While the Singapore assets continued to deliver steady income, the properties in Australia, 177 Pacific Highway and Southgate Complex, contributed to our robust performance this quarter."

As at Sept 30, the Singapore office portfolio achieved an overall committed occupancy of 99 per cent.

  • AT A GLANCE

  • REVENUE: $91.1 million (+10.6%)

    NET PROPERTY INCOME: $63.9 million (+11.6%)

    DISTRIBUTION PER UNIT: 2.483 cents (-2.1%)

The committed occupancies for Suntec City offices, One Raffles Quay and Marina Bay Financial Centre were at 98.4 per cent, 99.6 per cent and 100 per cent respectively.

In Australia, the committed occupancies for 177 Pacific Highway and Southgate Complex offices were 100 per cent and 89.6 per cent respectively.

Suntec City Mall's operational performance continued to strengthen during the quarter. "The overall committed occupancy maintained at a high of 99.3 per cent while year-to-date footfall and tenant sales per sq ft increased by 12.2 per cent and 4.9 per cent year on year, respectively," said Mr Chan.

The mall also secured a number of new-to-market brands, which will further enhance the overall retail offerings, he added.

A version of this article appeared in the print edition of The Straits Times on October 28, 2017, with the headline 'Suntec Reit reports 2.1% drop in DPU on enlarged unit base'. Print Edition | Subscribe