SPH Reit distributable income rises 1.6% to S$138.5 million for FY15

SPH Reit's two malls should remain resilient and turn in a steady performance, said Ms Susan Leng, chief executive officer of Reit manager. ST
SPH Reit's two malls should remain resilient and turn in a steady performance, said Ms Susan Leng, chief executive officer of Reit manager. ST PHOTO: LIM SIN THAI

SINGAPORE - Higher rental income at its two malls boosted earnings at SPH Reit, which posted a 1.6 per cent year on year rise in distributable income to S$138.5 million for the 2015 financial year.

Distribution per unit was 0.7 per cent higher at 5.47 cents, with the fourth quarter distribution per unit of 1.39 cents to be paid to unitholders on Nov 16.

Gross revenue for the year to Aug 31 rose 1.4 per cent to S$205.1 million, while net property income was 3.3 per cent higher at S$155.6 million, as a result of proactive management of expenses, the Reit manager said.

Both Paragon and The Clementi Mall had 100 per cent occupancy during the year, it said. Paragon enjoyed a rental uplift of 9.1 per cent for new or renewed leases in the year, while The Clementi Mall had a negative rental reversion of 5.6 per cent.

The negative rental reversion was on a small amount of space - about 5 per cent of total net lettable area - and due to the need to create a sustainable mix at the same time that large malls like Jem and Westgate were marketing their spaces, said Ms Susan Leng, chief executive officer of Reit manager.

For example, the manager introduced a SingPost outlet to the fifth floor, which boosted footfall although rents were lower.

Net asset value per unit at Aug 31 was 95 cents, up from 93 cents a year back.

While near-term economic growth for Singapore is expected to remain modest, with persisting uncertainties in the global economy and continued tight labour conditions here, the Reit's two malls should remain resilient and turn in a steady performance, said Ms Leng.

wrennie@sph.com.sg