Suntec Real Estate Investment Trust's (Reit) first-quarter earnings were bolstered by higher revenue and net property income from the completion of Suntec City Phase 3 and Suntec City Office.
Distributable income for the three months to March 31 rose 7.2 per cent year on year to $60 million, with distribution per unit gaining 6.3 per cent to 2.371 cents.
Gross revenue for the quarter grew 5.2 per cent to $78.3 million, mainly due to the opening of the third phase of Suntec City mall after its renovations, higher office revenue from Suntec City Office and higher revenue from Suntec Singapore Convention and Exhibition Centre (Suntec Singapore).
This was offset by the divestment of Park Mall, which was completed in December.
Gross office revenue fell 1.4 per cent to $33.2 million due to the divestment of Park Mall, while gross retail revenue rose 11.5 per cent to $25.9 million and Suntec Singapore revenue added 9.5 per cent to $19.2 million owing to higher convention revenue.
Total net property income rose 5.1 per cent to $54 million.
AT A GLANCE
GROSS REVENUE $78.34 million (+5.2%)
NET PROPERTY INCOME $53.97 million (+5.1%)
DISTRIBUTABLE INCOME $60 million (+7.2%)
DISTRIBUTION PER UNIT 2.371 cents (+6.3%)
Income contribution from joint ventures - the trust has a one-third interest in One Raffles Quay and one-third interest in Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall - fell 7 per cent to $22.3 million.
This was as the income support for the Marina Bay Financial Centre properties ended in the fourth quarter of last year, the manager said.
Across its portfolio, office committed occupancy weakened from 99.6 per cent a year earlier to 98.3 per cent at March 31.
Retail committed occupancy improved from 93.5 per cent to 98.6 per cent.
The Reit has a balance of 6 per cent of office leases expiring in the current financial year as well as a balance of 23.1 per cent of retail leases expiring this year.
Its aggregate leverage ratio stood at 36 per cent at March 31, up from 35.7 per cent a year earlier.
Net asset value per unit was $2.138 at March 31, down from $2.154 at Dec 31.
The Reit's commercial building in North Sydney is on track to be completed later this year, the manager said. Suntec Reit units closed 3.5 cents higher at $1.745 yesterday. The results were announced after markets closed.