SINGAPORE - Suntec Reit has posted a third-quarter distribution per unit (DPU) of 2.491 Singapore cents, up 0.3 per cent from the same period a year earlier.
Gross revenue in the three months ended Sept 30 dipped 2.5 per cent to $88.8 million, owing mainly to the lower contribution from 177 Pacific Highway due to the weakened Australian dollar and lower contributions from the Suntec City office as a result of downtime from replacement leases which will fully commence operations by the end of 2018.
Net property income fell 11.4 per cent to $56.5 million due to higher maintenance charges from the sinking fund contribution of $4.8 million for Suntec City office upgrading works. The weaker Australian dollar also resulted in a $2.1 million decline in income received from the Australian properties.
Excluding the sinking fund contribution which has no impact on distributable income, net property income would have fallen by 3.9 per cent to $61.4 million.
But third-quarter income contribution from joint ventures comprising One Raffles Quay, Marina Bay Financial Centre Properties and Southgate Complex rose 4.1 per cent to $23.2 million, lifted by the acquisition of an additional 25 per cent interest in Southgate Complex.
The Reit manager renewed and signed about 268,000 square feet (sq ft) of leases in the third quarter, reducing the leases expiring in 2018 and 2019 to 2.1 per cent and 10.9 per cent of net lettable area (NLA) respectively.
As at Sept 30, the Singapore office portfolio had an overall committed occupancy of 99 per cent. The committed occupancy for the Suntec City office was 99.6 per cent. One Raffles Quay had a committed occupancy of 96.1 per cent. Marina Bay Financial Centre Properties was fully committed.
For the Singapore retail portfolio, overall committed occupancy was 98.6 per cent. The committed occupancy for Suntec City mall stood at 98.5 per cent. Marina Bay Link Mall was fully committed. Year-to-date footfall for the Suntec City mall rose 5.5 per cent from the same period a year earlier while tenant sales per sq ft jumped 5.4 per cent.
Upgrading works at the Suntec City office will commence in the fourth quarter this year and be completed progressively over the next three years. Chan Kong Leong, chief executive of the Reit manager, said: "Office tenants can look forward to an enhanced experience with refreshed lobbies, washrooms and visitor management system."
In the third quarter, HSBC signed a 10-year lease at Marina Bay Financial Centre Tower 2. Fit-out work for the bank's new headquarters is expected to commence in the second half of 2019 with target occupation by April 2020.