SPH Reit maintains Q4 DPU of 1.39 Singapore cents; sees 100% occupancy at both malls

SPH Reit on Monday posted a distribution per unit (DPU) of 1.39 Singapore cents for its fourth quarter ended Aug 31, 2015.

Gross revenue slipped 0.6 per cent to S$50.8 million, while net property income rose 0.4 per cent to S$38.2 million on lower costs.

For the full year, the DPU was 5.47 Singapore cents, 0.7 per cent higher than a year ago. Gross revenue was up 1.4 per cent to S$205.1 million, while net property income rose 3.3 per cent to S$155.6 million.

Both its malls, Paragon and The Clementi Mall, maintained 100 per cent occupancy. But tenant sales at the upmarket Paragon along the Orchard Road shopping belt saw a 3.2 per cent drop in tenant sales on slowing tourist arrivals as well as the fitting-out period as some tenants expanded, causing others to have to move.

The Clementi Mall also saw rental rates renewed at 5.6 per cent lower than their preceding rates "on a very small percentage (5 per cent) of total net lettable area". This occurred as the mall manager sought to improve its tenant and product mix. Sometimes, this involves signing on tenants whom it can only charge lower rentals. The Clementi Mall completed its first renewal cycle last year.

At a media briefing, CEO Susan Leng maintained that The Seletar Mall was doing well, but was not stabilised enough to be injected into the Reit. SPH Reit will also continue to work with its sponsor, Singapore Press Holdings (SPH), to bid for suitable sites through the Government Land Sales programme as well as negotiate for sites through private treaties.

Shares of SPH Reit rose one per cent to S$0.965.

The Business Times is owned by SPH.