SPH Reit DPU for Q3 up 0.7% at 1.37 cents

The Paragon, one of SPH Reit's two properties.
The Paragon, one of SPH Reit's two properties.PHOTO: ST FILE

SINGAPORE - Third-quarter distribution per unit (DPU) at SPH Reit, a real estate investment trust sponsored by media group Singapore Press Holdings (SPH), came in at 1.37 cents, an increase of 0.7 per cent from a year earlier.

Gross revenue for the three months ended May 31 grew 2.1 per cent to $53.3 million, on the back of higher rental income from the Reit's two properties, Paragon and The Clementi Mall.

Net property income came in at $42.2 million, up 5.4 per cent compared with the same quarter last year.

Income available for distribution to unitholders rose 2 per cent from a year earlier to $35.7 million for the quarter, the Reit manager said on Wednesday (Jul 12).

The third-quarter distribution will be paid on Aug 23.

Both properties in the Reit "continued to demonstrate resilience, with positive rental reversion and full occupancy", the Reit manager said.

Paragon recorded a moderate rental uplift of 3.6 per cent for new and renewed leases in the quarter, "amid prevailing headwinds in the retail environment".

The Clementi Mall has completed its second renewal cycle and recorded a positive rental reversion of 3.7 per cent.

"The mall continued to receive strong endorsement by tenants with retention rate of 89 per cent by net lettable area," the Reit manager said.

In conjunction with this renewal cycle, the Reit manager reconfigured spaces in the basement of the mall and on the fourth floor to create additional lettable area and introduce a wider range of food and beverage offerings.

The incremental rental revenue of about $0.8 million per year from the reconfiguration would boost effective rental reversion to 6.4 per cent, said the Reit manager.

"We will continue to work closely with our tenants to ride through the challenges in the retail industry, including optimisation of sales productivity, embracing the fast-changing consumer expectations, identifying opportunities in e-commerce and technology advancement," said Ms Susan Leng, the chief executive of SPH Reit Management.