Company Briefs: SPH Reit; Keppel Land

SPH Reit

Contributions from its purchases of malls in Singapore and Australia boosted results for retail landlord SPH Reit in its third quarter ended May 31.

Distribution per unit (DPU) crept up to 1.39 cents from 1.37 cents in the preceding year, and third-quarter income available for distribution grew 4.8 per cent to $36.8 million from the previous year. Payment date is Aug 22.

For the three months ended May 31, gross revenue increased 12.7 per cent to $58.3 million from the year-ago period, thanks to contributions from The Rail Mall in Singapore and Figtree Grove Shopping Centre in New South Wales. They were acquired last year on June 28 and Dec 21 respectively. Net property income rose 14.2 per cent to $46.3 million from the previous year.

For the nine months ended May 31, DPU rose to 4.14 cents, up from 4.11 cents. Income available for distribution in the nine months rose 1.8 per cent to $109.7 million.

The real estate investment trust's committed occupancy by net lettable area was at 99 per cent as of May 31. For the fiscal year to date, the overall portfolio registered a positive rental reversion of 8.4 per cent, which it said was due to growth in overall tenant sales.

SPH Reit said that it plans to keep its malls relevant to consumers' changing demands, implement asset enhancement initiatives and explore acquisition opportunities. It owns Paragon mall, The Clementi Mall and The Rail Mall in Singapore, and has an 85 per cent stake in Figtree Grove Shopping Centre.


Keppel Land

Keppel Land, through its wholly owned subsidiary Monestine, is partnering Vietnamese developer Phu Long Real Estate Corporation to develop residences in Ho Chi Minh City, expected to cost over 7.4 trillion dong (S$432 million).

According to an exchange filing yesterday, Monestine has entered a conditional share purchase agreement with Phu Long to acquire a 60 per cent interest in three land parcels for 1.3 trillion dong. The land parcels span 6.2ha in the Nha Be district in Saigon South and are situated within 400m of one another.

The partners plan to develop a total of about 2,400 premium apartments - with ancillary shophouses that will offer around 157,691 sq ft of commercial space - on the sites. The total development cost for the project, inclusive of land cost, is expected to be in excess of 7.4 trillion dong, said Keppel Land.

The project will be developed in three phases. The first phase, involving the development of about 910 apartments and some shophouses, will commence in the first quarter of next year.

A version of this article appeared in the print edition of The Straits Times on July 12, 2019, with the headline 'Company Briefs'. Print Edition | Subscribe