SINGAPORE (THE BUSINESS TIMES) - Suntec Real Estate Investment Trust (Suntec Reit) posted on Tuesday (Jan 26) a 3.7 per cent fall in distribution per unit (DPU) to 2.261 cents for the fourth quarter compared with 2.347 cents for the year-ago period.

Gross revenue also fell 12 per cent at $165.9 million for H2, compared to $188.7 million a year ago. This was due to the Reit's losses from a fall in rental income, most significantly from its office and retail properties such as Suntec Singapore, for which revenue fell by 65.9 per cent.

The gains from 55 Currie street and 177 Pacific Highway as well as its two newly added properties, 21 Harris Street and Olderfleet at 477 Collins street were offset by the fall in revenue from Suntec City and Suntec Singapore.

The net property income (NPI) for H2 FY2020 was $109.0 million, $12.7 million or 10.4 per cent lower year on year, mainly attributable to rent assistance granted to Suntec City retail tenants and lower occupancy at Suntec Singapore.

Distributable income dipped 19.8 per cent to $106.1 million for H2, from $132.2 million last year.

Unitholders will receive a total DPU of 4.109 cents, which includes the $10.3 million distributable income that the Reit retained in the first half of FY2020.

The distribution will be paid out on Feb 26, after books closure on Feb 3.

Full-year DPU was 22.1 per cent lower at 7.402 cents, down from 9.507 cents in 2019. Distributable income for the year was 20.4 per cent lower at $209.2 million, from $262.7 million the previous year. Gross revenue was 14 per cent lower at $315.4 million, while NPI eased 15.4 per cent to $199.9 million for the full year.

The Reit expects a stable recovery in 2021 as workers begin to return to offices with a hybrid working arrangement, supplemented also by its Australia and UK properties with a strong occupancy.

However, a slow recovery of the retail and convention business is expected, said the manager, due to cautious sentiments of retailers and weak international travel.