SPH Reit's Q1 DPU up 0.8% to 1.34 cents

Shoppers at The Paragon shopping mall, one of SPH Reit Management's properties.
Shoppers at The Paragon shopping mall, one of SPH Reit Management's properties. PHOTO: ST FILE

SINGAPORE - SPH Reit Management, the manager of SPH REIT, said on Wednesday (Jan 11) that distribution per unit for the first quarter of the year was 1.34 cents, up 0.8 per cent from the same period a year ago.

This will be paid to unitholders on Feb 16.

Income available for distribution to unitholders was $36.4 million for the three months ended Nov 30, an increase of 3 per cent compared with the same quarter a year before.

Gross revenue for the first quarter grew 0.9 per cent year-on-year to $52.6 million.

With proactive management of utility and other key service contracts, net property income rose 3.3 per cent from a year ago to $41.4 million.

Both of the reit's properties, Paragon and The Clementi Mall, continued to demonstrate resilience, with positive rental reversion and full occupancy, the manager said.

"Despite headwinds in the retail environment, both properties are well-positioned to deliver steady performance."

The manager added it remains focused on its efforts to continually refresh the properties' tenant mix to strengthen various clusters in the malls and create exciting retail offers to enhance the shopping experience for shoppers.

SPH Reit Management chief executive Susan Leng said: "We are pleased that SPH Reit has kept its growth momentum with steady distribution, 100 per cent committed occupancy and positive rental reversion for both malls.

"The retail environment will remain challenging in 2017 amid modest economic growth and heightened uncertainties of the global environment. Our assets are well-located with clear market positioning to serve us well in embracing the challenges ahead."