SPH Reit Q2 DPU maintained at 1.40 cents

SINGAPORE - Second-quarter distribution per unit at SPH Reit, a real estate investment trust sponsored by media group Singapore Press Holdings (SPH), held steady at 1.40 cents.

Income available for distribution to unitholders increased by 2.4 per cent from a year earlier to $37.3 million for the three months ended Feb 28, the reit manager said on Monday (April 10).

The second-quarter distribution will be paid to unitholders on May 22.

Net property income for the quarter rose 5.2 per cent year-on-year to $42.7 million, mainly due to proactive management of utility contracts and lower property tax.

Last year's numbers included a one-off provision for the preceding year's property taxes.

Gross revenue for the three months ended Feb 28 grew 1.7 per cent to $54 million, on the back of higher rental income.

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

Paragon achieved a moderate rental uplift of 4.3 per cent for new and renewed leases in the first half of this year.

With about 85 per cent of The Clementi Mall's leases expiring this year, about 74 per cent by gross rental income have been renewed ahead of time.

The Clementi Mall recorded a positive rental reversion of 8.3 per cent for the leases expiring in the first six months of this year, representing 30 per cent of its second renewal cycle.