SPH Reit posts 2.1% rise in Q4 DPU to 1.46 S cents

RETAIL landlord SPH Reit on Thursday reported a 2.1 per cent rise in distribution per unit (DPU) to 1.46 Singapore cents for the fourth quarter ended Aug 31, up from 1.43 cents a year ago.

Gross revenue rose 10.2 per cent year-on-year to S$58.37 million on the back of contributions from The Rail Mall in Singapore and Figtree Grove Shopping Centre in Australia, which were acquired in June and December last year respectively. Meanwhile, net property income (NPI) was up 11.8 per cent to S$45.81 million. Income available for distribution clocked S$35.37 million or 2.3 per cent higher from the corresponding quarter a year ago.

Susan Leng, chief executive of SPH Reit Management, said: "We are pleased to close the year with a set of positive results. The full-year DPU of 5.60 cents was 1.1 per cent higher than last year. Paragon's tenant sales were 2.2 per cent higher year-on-year at S$708 million. Similarly, The Clementi Mall's tenant sales registered a 3 per cent increase to S$237 million. The occupancy rate across the portfolio was close to 100 per cent."

For the full year ended Aug 31, gross revenue increased 7.9 per cent to S$228.64 million, thanks to contributions from the two malls acquired last year. NPI worked out to be 8.3 per cent higher at S$179.78 million, and income available for distribution edged up 1.9 per cent to S$145.03 million. 

In FY19, Paragon recorded a positive rental reversion of 9.7 per cent for new and renewed leases, which represented 26.6 per cent of total net lettable area (NLA). Its location along the Orchard Road shopping belt allowed the mall to receive a boost from the increase in tourist arrivals, while the mall's visitor traffic edged up 1 per cent to 19 million, the Reit said.

Meanwhile, The Clementi Mall saw positive rental reversion of 5 per cent, which represented 10.7 per cent of the total NLA. 

The Rail Mall along Upper Bukit Timah Road also registered positive rental reversion of 9.4 per cent from lease renewals and new leases, which represented 23.5 per cent of total NLA.

The newly-acquired Figtree Grove Shopping Centre recorded a negative rental reversion of 2.7 per cent. The DPU will be distributed to unitholders on Nov 20.

Units in SPH Reit closed unchanged at S$1.11 on Thursday.