SPH Reit on Tuesday posted a distribution per unit (DPU) of 1.04 Singapore cent for the half-year period ended Aug 31, 2020, compared to 2.85 cents paid out in the corresponding period a year ago.

This was on the back of a 79.4 per cent drop in income available for distribution to S$14.9 million, from S$72.2 million a year ago; the Reit manager decided to defer the payment of some S$14.5 million, as allowed under Covid-19 relief measures announced by the Inland Revenue Authority of Singapore. This was "for prudence in financial management", it said.

Another S$15 million of capital allowance was used to provide for capital expenditure and other working capital requirements.

Revenue for the six months fell 7.4 per cent to S$108.1 million, as net property income declined 14.9 per cent to S$78.4 million, mainly due to S$31.8 million in rental waivers and reliefs granted by the landlord to its tenants in Singapore to help them cope with the effects of the pandemic.

The full-year result was better, with a 5.6 per cent increase in gross revenue to S$241.5 million, thanks to the Reit's acquisition of a 50-per-cent interest in Westfield Marion last December, which contributed S$37.5 million for three quarters, and Figtree Grove, which was acquired in December 2018 and registered its first full-year contribution of S$15.9 million.

Westfield Marion in Adelaide and Figtree Grove in Wollongong, New South Wales, contributed S$26.3 million and S$12.5 million respectively to net property income for FY20.

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For the full year, the Reit reported a 1.2 per cent improvement in net property income to S$181.9 million.

SPH Reit's Australia assets, though not spared the effects of Covid-19, were relatively less impacted. An allowance for rent relief of S$8.1 million was provided for FY20 to support eligible tenants affected by Covid-19, the manager said.

Full-year income available for distribution fell 36.4 per cent to S$92.2 million.