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Suntec Reit's Q4 DPU slips, S$800m Penang Rd project to be completed end 2019

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Development works for the new Grade A commercial building at 9 Penang Road has started in December 2016.

SUNTEC Real Estate Investment Trust posted on Wednesday a distribution per unit (DPU) of 2.596 Singapore cents for the fourth quarter ended December 31, 2016, 5.6 per cent lower than the DPU of 2.750 cents seen a year ago.

Distributable income stood at S$66.1 million, 4.9 per cent lowerthan a year ago. Net property income generated was S$60.7 million, 2.9 per cent lower on year due to the divestment of Park Mall and lower income from Suntec City and Suntec Singapore. Gross revenue of S$88.9 million was 1.6 per cent higher than a year ago. This was mainly due to the contribution of 177 Pacific Highway.

For the full year 2016, distributable income was S$253.7 million, 0.7 per cent higher than that generated in 2015. Full year DPU stood at 10.003 cents, which is in-line with 2015 DPU of 10.002 cents.

At the end of 2016, its Singapore office portfolio achieved an overall committed occupancy of 99.3 per cent. The committed occupancies for Suntec City Office, One Raffles Quay (ORQ) and Marina Bay Financial Centre (MBFC) properties were at 98.9 per cent, 100 per cent and 99.8 per cent, respectively.

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In Australia, the committed occupancies for 177 Pacific Highway and Southgate Complex (Office) were 100 per cent and 86.1 per cent, respectively.

As for its retail portfolio, the overall committed occupancy in Singapore was 97.7 per cent. The committed occupancy for Suntec City Mall improved to 97.9 per cent, while the committed occupancies for ORQ and Marina Bay Link Mall were 100 per cent and 97.4 per cent, respectively.

In Australia, the committed occupancy for Southgate Complex (Retail) was 89.0 per cent.

Development works for the new Grade A commercial building at 9 Penang Road has started in December 2016. The ten-storey building - with net lettable area of 352,000 sq ft of office space across eight floors and 15,000 sq ft of retail space on one floor - is scheduled to be completed by end 2019. The land lease where the former Park Mall was situated has also been extended to 99 years.

The development is estimated to cost about S$800 million, and is undertaken through a joint venture with Singhaiyi Group, Haiyi Holdings and Suntec Reit, with an interest of 35 per cent, 35 per cent and 30 per cent, respectively.

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