Rents from a new property in Australia helped boost Suntec Reit in the first quarter, it reported yesterday.

Distribution per unit (DPU) came in at 2.425 cents for the three months to March 31, up 2.3 per cent on the 2.371 cents recorded in the same period a year earlier.

Gross revenue grew 12.9 per cent to $88.4 million, mainly due to the rental contribution from 177 Pacific Highway, North Sydney, which received practical completion last August. Net property income rose 14.6 per cent to $61.8 million.

Occupancies were high at its Singapore office portfolio as at March 31. The overall committed occupancy was 99 per cent for Suntec City Office, 100 per cent for One Raffles Quay and 99.8 per cent for Marina Bay Financial Centre Properties.

Mr Chan Kong Leong,chief executive 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."

The committed occupancies were 100 per cent for 177 Pacific Highway and 89.7 per cent for the Southgate Complex (Office) in Melbourne. New leases signed at Southgate Complex lifted the committed occupancy for its Australian office portfolio 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.

The overall committed occupancy for the Singapore retail portfolio stood at 98.3 per cent as at March 31. Mr Chan said development works for the new Grade A commercial building at 9 Penang Road are on track and building plan approval has been obtained.

Ann Williams