SPH Reit posts 2.3% rise in DPU to 1.33 cents in Q1

SPH Reit posted a 2.3 per cent increase in distribution per unit to 1.33 Singapore cents for the first quarter ended Nov 30, 2014, thanks to strong rental reversions and occupancies at its malls.

Gross revenue during the quarter improved 1.8 per cent from a year ago to S$50.6 million, while net property income grew 4.9 per cent to S$37.9 million.

According to the Reit manager SPH Reit Management, the improvements came on the back of higher rental income and proactive management of expenses in both Paragon and The Clementi Mall, which are both fully leased.

"Paragon continues to achieve consistently robust performance with rental uplift of 12.5 per cent for new or renewed leases in Q1 2015," the Reit manager said. "The Clementi Mall completed the first lease renewal cycle in 2014 with 84.2 per cent of lease expiring (by net lettable area) in 2017."

Units of SPH Reit were unchanged at S$1.04 at market close.