14 S-Reit DPUs up average 31% year on year

ENTERING the earnings season the first quarter of 2021, 14 S-Reits had reported their distributions per unit (DPUs) as at end April, averaging a 31 per cent increase year on year (yoy). Another 10 S-Reits are expected to announce quarterly business updates or financial results in May.

Of the 14 S-Reits that reported, 12 saw a yoy increase in DPU. The five S-Reits with the highest yoy DPU increments are: SPH Reit (+313.3 per cent), Mapletree Commercial Trust (+57.9 per cent), ARA Logos Logistics Trust (+35.7 per cent), Frasers Centrepoint Trust (28.4 per cent) and Keppel DC Reit (18.1 per cent).

SPH Reit declared a DPU of 1.24 Singapore cents for Q2 FY2021 ended Feb 28 - a 313.3 per cent increase yoy. Its near-term focus is to maintain healthy occupancy and sustainable rental income in partnership with tenants. SPH Reit's portfolio occupancy rate stands at 98 per cent as at Feb 28, compared to 98.9 per cent a year ago.

Mapletree Commercial Trust (MCT) declared a DPU of 5.32 Singapore cents for H2 FY21 ended March 31, up 57.9 per cent yoy, bringing full year DPU to 9.49 Singapore cents. The latest declared DPU includes the release of S$13.0 million from the retained cash carried forward from Q4 FY20.

MCT said monthly tenant sales in Q4 FY21 have recovered to more than 86 per cent of pre-Covid levels.

ARA Logos Logistics Trust (ALOG) declared a DPU of 1.353 Singapore cents for Q1 FY21, representing a 35.7 per cent increment yoy. The increase in DPU, though partly due to the retention of S$2.5 million distributable income in Q1 FY20, was also contributed by the 8.7 per cent yoy rise in NPI.

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ALOG said the stronger portfolio performance was due to the commencement of new leases at several properties as well as higher revenue generated from the Australia portfolio on the back of the strengthening Australian dollar. As at end-March, ALOG's portfolio committed occupancy rose to 99.1 per cent.

Frasers Centrepoint Trust (FCT) declared H1 FY21 DPU of 5.996 Singapore cents, up 28.4 per cent yoy. This marks its first set of financial results since the acquisition of the remaining 63.11 per cent stake in AsiaRetail Fund Ltd in October. FCT said its retail portfolio occupancy remained stable at 96.1 per cent. FCT expects the vaccination programme in Singapore and continued re-opening of the economy to support the recovery of shopper traffic and tenants' sales.

Keppel DC Reit (KDCREIT) reported DPU of 2.462 Singapore cents for Q1 FY21, representing an 18.1 per cent yoy increase. The DPU increment was attributed to contributions from new accretive acquisitions and asset enhancement initiatives in 2020. Note that KDCREIT pays distributions on a semi-annual basis, and no distribution will be paid for Q1 FY2021. SGX RESEARCH

• For more research and information on Singapore's Reit sector, visit sgx.com/research-education/sectors for the monthly S-Reits & Property Trusts Chartbook.
• Source: SGX Research S-Reits & Property Trusts Chartbook.