SPH Reit maintains DPU of 1.4 Singapore cents for Q2 FY16

SPH Reit Management, the managers of SPH Reit, has announced a distribution per unit (DPU) of 1.4 Singapore cents for the second quarter ended Feb 29, 2016.

This is equal to the DPU paid in the corresponding quarter a year ago.

Gross revenue came to S$53.09 million, up 1.2 per cent year on year for the quarter under review, thanks to higher rental income from both Paragon and The Clementi Mall. Meanwhile, net property income (NPI) edged up nearly one per cent to S$40.61 million.

For H1 2016, gross revenue increased 2 per cent to S$105.19 million while NPI rose 3.3 per cent to S$80.71 million.

Paragon's occupancy was 99.9 per cent as at Feb 29 and despite the weak retail sentiment, the property achieved a moderate rental uplift of 4.3 per cent for new and renewed leases in H1 FY16. Meanwhile, The Clementi Mall remained fully leased, with positive rental reversion of 3.1 per cent in H1 2016.

Susan Leng, chief executive of SPH Reit Management, said: "SPH REIT has continued to deliver a steady performance amid modest economic outlook and challenging retail environment."

She added: "We remain focused on opportunities to create value and strengthen long-term sustainability of the properties. Barring any unforeseen circumstances, the two properties are expected to remain resilient, and turn in a steady performance."

SPH Reit closed at 97 cents on Monday, unchanged.