SPH Reit net property income dips 1.2% to $166m

SPH Reit saw higher takings from The Rail Malland The Clementi Mall, but lower revenue at Paragon mall for the full year ended Aug 31. The Reit's DPU clocked 5.54 cents, up 0.2 per cent from 5.53 cents in FY2017.
SPH Reit saw higher takings from The Rail Malland The Clementi Mall, but lower revenue at Paragon mall for the full year ended Aug 31. The Reit's DPU clocked 5.54 cents, up 0.2 per cent from 5.53 cents in FY2017.PHOTO: BERITA HARIAN

SPH Reit's net property income fell 1.2 per cent to $166 million for the full year ended Aug 31, owing to lower revenue at Paragon mall, though there were higher takings from The Clementi Mall and the recently acquired The Rail Mall.

Overall, gross revenue dipped 0.4 per cent to $211.8 million, financial statements showed yesterday.

Paragon registered a negative rental reversion of 3.7 per cent for new and renewed leases for FY2018 as earlier leases were committed during the retail sales downturn.

The overall decline moderated during the financial year, the real estate investment trust added, in tandem with the recovery in retail sales from the second half of last year.

On the bright side, more tourists and improving consumer sentiments led Paragon to record a 2.7 per cent increase in visitor traffic to 18.8 million.

Tenant sales grew by 2.7 per cent to $693 million.

Meanwhile, The Clementi Mall chalked up a positive rental reversion of 3 per cent in FY2018, with a renewal of 5.9 per cent of the mall's net lettable area.

Visitor traffic at The Clementi Mall was on a par with FY2017 at 29.9 million, but tenant sales grew by 2.2 per cent to $230 million.

Overall occupancy for the portfolio was 99.4 per cent.

The portfolio recorded a valuation of $3.368 billion as of Aug 31, versus $3.278 billion in FY2017.

Net asset value per unit was maintained at 95 cents as of Aug 31.

For the full year ended Aug 31, SPH Reit's distribution per unit (DPU) clocked 5.54 cents, up 0.2 per cent from 5.53 cents in FY2017.

It declared a DPU of 1.43 Singapore cents for the fourth quarter ended Aug 31, 0.7 per cent up from 1.42 Singapore cents a year ago.

Net property income for the fourth quarter fell 1.9 per cent to $40.98 million as property operating expense rose faster than gross revenue.

Gross revenue edged up 0.2 per cent to $52.96 million on the back of higher rental income from The Clementi Mall and two months' contribution from The Rail Mall, which was acquired in June.

Commenting on its latest acquisition, The Rail Mall, SPH Reit Management chief executive Susan Leng said: "Plans are under way to strengthen its positioning and to initiate community programmes leveraging the Rail Corridor to attract a wider catchment."

SPH Reit will pay out the DPU to unit holders on Nov 21.

Units in SPH Reit closed at 98.5 cents, down 1.5 cents, yesterday.

A version of this article appeared in the print edition of The Straits Times on October 12, 2018, with the headline 'SPH Reit net property income dips 1.2% to $166m'. Print Edition | Subscribe