S-Reits' H1 average change in DPU up 36%

AS the earnings season conclude, Reits and property trusts listed in Singapore have announced financial results or published business updates for the period ended June 30, 2021.

Of the S-Reits which declared distributions for the first half of calendar year 2021, average change in distribution per unit (DPU) increased by 36 per cent year on year.

The five S-Reits with the highest year-on-year (y-o-y) DPU increments for the period January to June 2021 are: SPH Reit SK6U (228 per cent), Sabana Shari'ah Compliant Industrial Reit M1GU (215 per cent), Starhill Global Reit P40U (196 per cent), Ascott Residence Trust HMN (95 per cent) and CapitaLand Integrated Commercial Trust C38U (75 per cent).

SPH Reit declared a DPU of 1.38 Singapore cents for the third quarter (Q3) FY2021 ended May 31, bringing its DPU for the period of December 2020 to May 2021 to 2.62 Singapore cents - a 228 per cent increase year on year. In its latest business update for Q3 FY2021, the Reit noted gradual recovery with improvements in gross revenue of 22.2 per cent year on year to S$209.6 million.

This was led by recovery in performance across all assets while supported by an additional quarter of contribution from Westfield Marion compared to the same period last year and a decrease in rent reliefs to Singapore and Australia eligible tenants.

Sabana Shari'ah Compliant Industrial Reit (Sabana Reit) reported DPU of 1.48 Singapore cents for first half (H1) 2021, representing a 215 per cent y-o-y increase.

This was mainly due to the temporary retainment of 55.0 per cent of its distributable income in H1 2020 to conserve capital.

The Reit also reported a 14.1 per cent y-o-y increase in gross revenue, mainly due to higher contribution from New Tech Park, 23 Serangoon North Avenue 5 and 10 Changi South Street 2 on higher occupancy.

During the period, Sabana Reit announced the removal of its Shari'ah compliance requirement in order to accommodate the changing profile of tenants and enhance its flexibility for the next phase of growth.

Starhill Global Reit (SGReit) reported second half (H2) FY2020/2021 DPU of 2.07 Singapore cents, representing a y-o-y increase of 196 per cent, mainly due to the release of retained income for working capital requirements.

SGReit noted that gross revenue for the period increased 10.5 per cent year on year, resulting in a 20.2 per cent increase in its net property income (NPI).

This was mainly attributed to lower rental assistance for eligible tenants affected by the Covid-19 pandemic and the appreciation of the Australian dollar against the Singapore dollar.

Ascott Residence Trust (ART) raised its DPU for H1 2021 by 95 per cent year on year, attributable to active portfolio optimisation.

The trust noted that distributable income for H1 2021 included a one-off partial distribution of divestment gains of S$20 million to share divestment gains with unitholders, replace income loss from divested assets and mitigate the impact of Covid-19 on distributions.

CapitaLand Integrated Commercial Trust (CICT) announced a DPU of 5.18 Singapore cents for H1 2021, representing a 75 per cent increase year on year.

The Reit reported a 103 per cent and 118 per cent y-o-y increase in gross revenue and NPI respectively.

In H1 2021, CICT granted S$18.9 million of rental waivers for tenants affected by Covid-19, particularly during Singapore's first Phase 2 (Heightened Alert) from May 16 to June 13, 2021. SGX RESEARCH

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• Source: SGX Research S-Reits & Property Trusts Chartbook.