Suntec Reit's Q3 unit distribution higher

Singapore

SUNTEC Real Estate Investment Trust's distribution per unit (DPU) for the third quarter ended September inched up from 2.289 Singapore cents a year ago to 2.328 Singapore cents.

This was on the back of total distributable income jumping 12.4 per cent, from S$51.8 million to S$58.3 million. Yeo See Kiat, chief executive officer of ARA Trust Management (Suntec) Limited, the manager of Suntec Reit, attributed the increase to the completion of Suntec City Phase 2 and contribution from 177 Pacific Highway, the Reit's acquisition in North Sydney.

For the quarter under review, net property income rose 21.1 per cent from S$40.3 million to S$48.8 million, while gross revenue rose 8.5 per cent, from S$65.9 million to S$71.5 million.

On the retail portfolio front, the committed occupancy for Suntec City Phase 1 and Phase 2 was 98.9 per cent while Park Mall maintained 100 per cent committed occupancy. The overall committed occupancy for the retail portfolio stood at 98.4 per cent as at Sept 30. For its office portfolio, the Reit achieved 100 per cent committed occupancy for Suntec City Office Towers, Park Mall Office, One Raffles Quay and Marina Bay Financial Centre properties.

"During the quarter, we have renewed approximately 280,000 sq ft of leases expiring, leaving us with a balance of 2.1 per cent and 17.9 per cent of the office leases due to expire in 2014 and 2015 respectively. We are confident that our office portfolio in 2014 would outperform the preceding year," said Mr Yeo.

For the nine months ended September, Suntec Reit's gross revenue and net property income of S$205.6 million and S$138.6 million were 26.5 per cent and 40.2 per cent higher year-on-year respectively. This was due to the opening of Suntec Singapore in the second half of 2013.

The total distribution income of S$165.7 million was 8.3 per cent higher year-on-year. DPU for the nine months was 6.823 Singapore cents.

"On the marketing front, we are pleased to report that we have achieved 86 per cent committed occupancy for the entire remaking of Suntec City to-date. The committed occupancy for Phases 1 & 2 stood at 99.7 per cent. The pre-committed occupancy for Phase 3 is 60 per cent currently and the team is working actively on the leasing of the remaining space," said Mr Yeo.

"Our current priorities are to focus on the execution and completion of the remaking of Suntec City, the marketing of Phase 3 as well as proactive lease management to strengthen the lease commitments and maintain the high occupancy levels of both our office and retail portfolios."

The Reit ended trading yesterday up half a cent at S$1.80.