Suntec Reit DPU dips 0.8% for second quarter

On May 31, Suntec Reit completed the acquisition of an additional 25 per cent interest in the Southgate Complex integrated development in Australia, raising its total interest to 50 per cent.
On May 31, Suntec Reit completed the acquisition of an additional 25 per cent interest in the Southgate Complex integrated development in Australia, raising its total interest to 50 per cent.PHOTO: ARA ASSET MANAGEMENT

But gross revenue, NPI rise on Suntec S'pore and mall earnings

Suntec Real Estate Investment Trust's (Suntec Reit) distribution per unit (DPU) edged down to 2.474 cents for the second quarter ended June 30, 0.8 per cent lower than the 2.493 cents for the year-ago period.

Gross revenue rose 3.7 per cent year on year to $90.5 million, while net property income rose 2.2 per cent to $60.7 million, both due mainly to higher contributions from Suntec Singapore and Suntec City Mall offsetting a lower Suntec City office contribution.

Distribution to unit holders for the quarter was flat at $66 million.

Overall committed occupancy as at June 30 rose to 99.8 per cent for the Singapore office portfolio and improved to 98.6 per cent for the Singapore retail portfolio.

For Suntec Reit's Australian properties, the committed occupancy for 177 Pacific Highway stayed at 100 per cent, while Southgate Complex saw committed occupancy of 92.7 per cent for its office towers and 90.4 per cent for its retail podium. Suntec Reit completed the acquisition of an additional 25 per cent interest in the Southgate Complex integrated development on May 31, raising its total interest to 50 per cent.

For the first half of fiscal 2018, the Reit's DPU of 4.907 cents was a marginal 0.2 per cent lower year on year, due mainly to an enlarged units base.

  • AT A GLANCE (Q2)

  • DISTRIBUTION PER UNIT:

    2.474 cents (-0.8%)

    NET PROPERTY INCOME:

    $60.7 million (+2.2%)

Distributable income for the first half was 2.3 per cent higher at $130.8 million.

Suntec Reit's gross revenue for the first half of the year rose 3.1 per cent year on year to $181.2 million, while net property income rose 2 per cent to $123.7 million.

The Reit's debt-to-asset ratio was 36.5 per cent as at June 30, while its all-in financing cost was 2.74 per cent per annum for the second quarter.

Unit holders will receive their DPU payout for the second quarter on Aug 29.

A version of this article appeared in the print edition of The Straits Times on July 26, 2018, with the headline 'Suntec Reit DPU dips 0.8% for second quarter'. Print Edition | Subscribe