SPH Reit posts nearly 12% rise in gross revenue for Q1

Net property income for Paragon (pictured) and The Clementi Mall improved $1.8 million and $0.2 million respectively, while that for The Rail Mall remained flat. PHOTO: SPH RETAIL PROPERTY MANAGEMENT SERVICES PTE LTD

SINGAPORE (THE BUSINESS TIMES) - Retail landlord SPH Reit on Friday (Jan 10) clocked an increase in gross revenue of nearly 12 per cent for the first quarter of FY2020, aided mainly by a rise in rental income from Paragon mall and Australia's Figtree Grove Shopping Centre.

Gross revenue came in at $60 million in the three months to end-November last year, up from $54 million in the previous corresponding period.

The Reit thus posted a 3 per cent rise in distribution per unit (DPU) for the first quarter of the 2020 financial year to 1.38 Singapore cents, from 1.34 cents a year ago.

Net property income (NPI) improved 12.4 per cent to $47 million from $42 million. All the Reit's three assets in Singapore posted positive rental reversions in the quarter, said its manager SPH Reit Management.

NPI for Paragon and The Clementi Mall improved $1.8 million and $0.2 million respectively, while that for The Rail Mall remained flat.

Figtree Grove Shopping Centre - a sub-regional mall in Wollongong, New South Wales, which was acquired in the second quarter of FY2019 - contributed $3.1 million to the increase in NPI.

Income available for distribution slipped 0.2 per cent to $35.8 million in the period under review from $35.9 million, mainly owing to the $300 million perpetual securities issued in August 2019 (paid in early-December last year) to acquire a 50 per cent stake in Westfield Marion Shopping Centre - the largest and the only regional shopping centre in South Australia.

The deal, its second acquisition in Australia, is expected to be DPU-accretive and will further enhance the Reit's portfolio of quality assets, said SPH Reit Management's chief executive Susan Leng in a statement.

During the quarter, the Reit's portfolio maintained a high occupancy rate of 99.3 per cent. The Singapore assets registered a 99.4 per cent occupancy rate with a positive rental reversion of 10.9 per cent, while Figtree Grove's occupancy stayed strong at 99.2 per cent.

The distribution by SPH Reit, whose sponsor is Singapore Press Holdings, which publishes The Straits Times and The Business Times, will be paid to unit holders on Feb 14.

The Reit's units finished at $1.08 on Friday, up one cent or 0.9 per cent.

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