SPH Reit's Q1 DPU unchanged at 1.34 cents

SPH Reit owns two malls - Paragon in Orchard (above) and The Clementi Mall in Clementi. Both properties continued their track record of full occupancy despite headwinds in the retail sector.
SPH Reit owns two malls - Paragon in Orchard (above) and The Clementi Mall in Clementi. Both properties continued their track record of full occupancy despite headwinds in the retail sector.PHOTO: ST FILE

Higher rental income helped boost the first-quarter turnover at SPH Reit, it reported yesterday.

The trust posted distribution per unit (DPU) of 1.34 cents for the three months to Nov 30, unchanged from a year ago, due to an enlarged unit base.

This will be payable on Feb 14.

Gross revenue grew 1.7 per cent to $53.5 million, on the back of increased rental income. Net property income rose 1.9 per cent to $42.2 million.

SPH Reit owns two malls - Paragon in Orchard and The Clementi Mall in Clementi. Both properties continued their track record of full occupancy despite headwinds in the retail sector.

But Paragon recorded a negative rental reversion of 10.6 per cent for new and renewed leases during the quarter, which were mostly committed a year ago. This represented 4.4 per cent of Paragon's net lettable area. The Clementi Mall had only one tenancy change, which ushered in a replacement tenant of a different trade mix paying rents at 9.8 per cent below the previous tenant.

The overall portfolio rental reversion - based on the weighted average of all expiring leases - was a negative 10.6 per cent for the quarter, compared with a positive 1.2 per cent for new and renewed leases in 2017.

SPH Reit owns two malls - Paragon in Orchard and The Clementi Mall in Clementi. Both properties continued their track record of full occupancy despite headwinds in the retail sector.

Ms Susan Leng, chief executive of SPH Reit Management, noted that the economic outlook has improved and retail sales have shown some signs of recovery since June last year.

 

"If the recent growth momentum sustains, SPH Reit malls will be well-poised to benefit from it," she added.

SPH Reit's gearing level stood at 25.4 per cent and average cost of debt at 2.84 per cent a year as at Nov 30. The weighted average term to maturity of its debt was 1.8 years. SPH Reit units closed unchanged at $1.07 yesterday.

A version of this article appeared in the print edition of The Straits Times on January 06, 2018, with the headline 'SPH Reit's Q1 DPU unchanged at 1.34 cents'. Print Edition | Subscribe