SPH Reit Q2 net property income rises 5.2%

SPH Reit's second-quarter net property income increased by 5.2 per cent year-on-year to S$42.7 million as the retail real estate investment trust adjusted its utility contract and enjoyed a lower property tax burden.

Income available for distribution increased by 2.4 per cent to S$37.3 million for the quarter, while distribution per unit held at 1.40 Singapore cents.

For the six months ended Feb 28, 2017, net property income increased by 4.3 per cent to S$84.2 million, while income available for distribution increased by 2.7 per cent to S$73.7 million and distribution per unit gained 0.01 Singapore cent to 2.74 Singapore cents.

The Reit, whose sponsor, Singapore Press Holdings, owns The Business Times, had a gearing level of 25.7 per cent as at Feb 28, 2017. The weighted average term to maturity for its debt is 2.6 years.

SPH Reit closed at 97.5 Singapore cents on Monday, lower by 0.5 per cent or half a cent, before the results were announced.