Suntec Reit's Q4 distributable income up 7.7%

SUNTEC Reit posted a distributable income of S$69.5 million for the fourth quarter ended December, up 7.7 per cent compared to the previous year. This translates into a distribution per unit of 2.75 Singapore cents, up 6.7 per cent compared with 2.577 cents the previous year.

For the financial year ended 2015, the reit achieved a distributable income of S$252.0 million which was 9.4 per cent higher year-on-year. DPU for the year was 10.002 cents.

"In November, we acquired three floors of Suntec strata office space amounting to approximately 38,000 sq ft. We also completed the divestment of Park Mall in December and entered into a joint venture to redevelop the property into a new commercial development. The redevelopment will further unlock the underlying value of the property by enhancing the gross floor area of the site," said Yeo See Kiat, chief executive officer of ARA Trust Management (Suntec), the manager of Suntec Reit.

The committed occupancy for Suntec City mall improved to 98.0 per cent while Suntec City Office Towers achieved 99.3 per cent committed occupancy as at Dec 31, 2015. The committed occupancy for One Raffles Quay and Marina Bay Financial Centre properties was 99.8 per cent and 99.3 per cent, respectively. Park Mall's retail and office committed occupancy was 96.7 per cent and 92.2 per cent, respectively, as at end December.

The Reit's overall committed occupancy for the office and retail portfolio improved to 99.3 per cent and 97.9 per cent, respectively, as at Dec 31.

Said Mr Yeo: "We are pleased to report that our office portfolio continued to perform strongly. In 2015, we have renewed and replaced approximately 710,000 sq ft of leases, leaving us with a balance of only 14.9 per cent due to expire in 2016. Looking ahead, we expect the performance of our office portfolio to be stable in 2016."

As at end December, Suntec Reit's assets under management stood at S$9.3 billion.