Retail landlord SPH Reit lifted gross revenue by almost 12 per cent for the first quarter, thanks in part to a rise in rental income from the Paragon mall and Australia's Figtree Grove Shopping Centre.
Gross revenue came in at $60 million for the three months to Nov 30, up from $54 million in the same period a year earlier. The Reit posted a 3 per cent rise in distribution per unit (DPU) to 1.38 cents from 1.34 cents a year ago.
Net property income (NPI) improved 12.4 per cent to $47 million. All the Reit's three assets in Singapore posted positive rental reversions in the quarter, said its manager, SPH Reit Management.
Figtree Grove Shopping Centre - a mall in Wollongong, south of Sydney, that was acquired in the second quarter of the 2019 financial year - contributed $3.1 million to the increase in NPI.
Income available for distribution slipped 0.2 per cent to $35.8 million, mainly owing to the $300 million perpetual securities issued in August 2019 to acquire a 50 per cent stake in Westfield Marion Shopping Centre in South Australia, the Reit said.
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 chief executive Susan Leng.
The Reit's portfolio maintained a high occupancy rate of 99.3 per cent in the quarter.
The distribution by SPH Reit will be paid on Feb 14.
SPH Reit units closed up 0.9 per cent at $1.08 yesterday.
THE BUSINESS TIMES