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SPH Reit Q2 DPU up 0.7%
SPH Reit raised its distribution per unit by 0.7 per cent to 1.4 Singapore cents for its second fiscal quarter as rental income increased at its two retail properties.
Gross revenue at the retail real estate investment trust improved by 2.8 per cent year-on-year to S$52.5 million in the three months ended Feb 28. Net property income rose 3.7 per cent to S$40.3 million during the same period.
Income available for distribution increased by 4 per cent to S$36.3 million, but SPH Reit is retaining S$1 million for future distribution.
SPH Reit shares closed flat at S$1.065 on Monday before the results were announced. The Reit is a 70 per cent-owned unit of Singapore Press Holdings, which also owns the Business Times.
Following the latest quarter, SPH Reit's distribution per unit for the six months to February will stand at 2.73 Singapore cents, up by 1.5 per cent year-on-year. Gross revenue for the first fiscal half rose 2.3 per cent to S$103.1 million, while net property income increased by 4.3 per cent to S$78.1 million.
Rental income rose during the second quarter at Paragon and Clementi Mall, SPH Reit's two properties. Both malls are fully leased.
Paragon managed to raise rents by 11.6 per cent for new or renewed leases in the first half, while the Clementi Mall's rents saw an 8.8 per cent decline on new or renewed leases on 2 per cent of total net lettable area because of "fine-tuning of tenancies to strengthen the offering to a wider base of shoppers", SPH Reit stated.
"Several new-to-market international brands were introduced in Paragon to enhance its premier positioning and refresh the offering to shoppers," Susan Leng, chief executive of SPH Reit's manager, said in a statement. "The Clementi Mall continues to enjoy strong visitorship and is well-positioned as a necessity mall in an established population catchment area. Barring any unforeseen circumstances, the two retail properties are expected to remain resilient and turn in a steady performance."