SPH Reit 4Q DPU up 0.7% on higher rental income

A file picture of shoppers at The Paragon shopping mall located along Orchard Road. PHOTO: SPH
A file picture of shoppers at The Paragon shopping mall located along Orchard Road. PHOTO: SPH

SINGAPORE - Fourth-quarter distribution per unit (DPU) at SPH Reit, a real estate investment trust sponsored by media group Singapore Press Holdings (SPH), came in at 1.42 cents, inching up 0.7 per cent from 1.41 cents a year earlier.

This came despite a muted retail environment, with both properties continuing their track record of full occupancy amid mounting competition, the Reit manager said on Monday (Oct 9).

The DPU for the full-year was 5.53 cents, up 0.5 per cent from a year earlier.

The fourth-quarter distribution will be paid on Nov 16.

Gross revenue for the fourth quarter ended Aug 31 grew 1.3 per cent to $52.9 million, on the back of higher rental income from the Reit's two properties, Paragon and The Clementi Mall.

Gross revenue for the full year was up 1.5 per cent to $212.8 million.

Net property income for the fourth quarter was up 3.9 per cent year-on-year at $41.8 million. For the full year, net property income rose 4.5 per cent to $168.1 million.

Net asset value per unit was 95 cents as at Aug 31, up marginally from 94 cents on the same date a year earlier.

Chief executive Susan Leng said the economic outlook has improved but the retail scene remains muted with cautious consumer sentiment coupled with structural changes in consumer behaviour. "We will partner with our tenants towards mutual success, and to ride through both structural and cyclical retail trends."