Suntec Reit sees 5.6% drop in Q4 DPU, says new building on Park Mall site to complete by end-2019

The new building on Park Mall site is to be completed by end-2019.
The new building on Park Mall site is to be completed by end-2019.PHOTO: SUNTEC REIT

SINGAPORE - Suntec Real Estate Investment Trust reported on Wednesday (Jan 25) a 5.6 per cent decline in distribution per unit (DPU) to 2.596 Singapore cents for the fourth quarter ended Dec 31, 2016, compared to 2.750 cents a year ago.

Net property income (NPI) for the quarter dipped 2.9 per cent to S$60.7 million, due to the divestment of Park Mall and lower income from Suntec City and Suntec Singapore, offset by the contribution from 177 Pacific Highway.

For full-year 2016, Suntec Reit announced DPU of 10.003 cents, almost unchanged from 10.002 cents for 2015, as NPI slipped 2 per cent to S$224.6 million.

Mr Chan Kong Leong, CEO of the Reit's manager, said, "While we remain Singapore-centric, we have in 2016, deepened our presence in Australia with the acquisition of an initial 25 per cent interest in the iconic Southgate Complex, Melbourne. We have also demonstrated our execution and development capabilities with the practical completion of 177 Pacific Highway on 1 August 2016."

As at Dec 31, Suntec Reit's Singapore office portfolio achieved an overall committed occupancy of 99.3 per cent. The committed occupancies for Suntec City Office, One Raffles Quay and Marina Bay Financial Centre properties were at 98.9 per cent, 100 per cent and 99.8 per cent respectively. In Australia, the committed occupancies for 177 Pacific Highway and Southgate Complex (Office) were 100 per cent and 86.1 per cent respectively.

On Suntec Reit's retail performance, the committed occupancy of Suntec City Mall strengthened to 97.9 per cent and mall footfall improved 16.1 per cent year on year to close to 40 million shoppers, said Mr Chan.

Providing an update on the development of 9 Penang Road, formely known as Park Mall, Mr Chan said the office-cum-retail project is scheduled to complete by end-2019 "when the new office supply is expected to be limited."

The ten-storey building consists of two wings with an approximate net lettable area of 352,000 sq ft of office space across eight floors and 15,000 sq ft of retail space on one floor.

There will also be a cycling path into the building and end-of-trip facilities. in-line with the Land Transport Authority's and Urban Redevelopment Authority's Walking and Cycling Plan, said the Reit's manager.

Suntec Reit has a 30 per cent stake in the joint venture undertaking the project, which is estimated to cost around S$800 million. Singhaiyi Group Ltd and Haiyi Holdings Pte Ltd each hold a 35 per cent interest in the development.