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Suntec Reit's Q1 distributable income rises 10.1% at S$56m

SUNTEC Real Estate Investment Trust (Suntec Reit) on Thursday posted a distributable income of S$56 million for the three months ended March 31, 2015, 10.1 per cent higher than for the corresponding quarter last year.

Distribution per unit (DPU) was 2.23 Singapore cents, similar to the 2.229 cents in the year-ago period.

The higher distributable income was largely attributable to the completion of Suntec City phase 2, improved contribution from Suntec Singapore and income received from 177 Pacific Highway in North Sydney, said Yeo See Kiat, CEO of Reit manager ARA Trust Management (Suntec) Limited.

Gross revenue rose 12.9 per cent to S$74.5 million and net property income went up 17.3 per cent year on year to S$51.4 million, driven by the opening of phase 2 of Suntec City mall and stronger performance from Suntec Singapore.

The debt-to-asset ratio for the quarter stood at 34.8 per cent as at end-March 2015, while the average all-in financing cost was 2.53 per cent.

On the remaking of Suntec City, the temporary occupation permit for phase 3 was obtained in February, said Suntec Reit.

"On the marketing front, we are pleased to report that amidst the continuing headwind in the retail industry, we have to-date achieved 93.6 per cent committed occupancy for the entire remaking of Suntec City," Mr Yeo said, adding that the company's current priority is to lease the remaining retail spaces in Suntec City as it prepares for the opening of phase 3.

The counter closed down S$0.01 to S$1.85 before the results were released.