Suntec Reit's Q1 DPU up 0.3% to 2.4 S cents

SUNTEC Reit's Q1 distribution per unit (DPU) rose 0.3 per cent to 2.433 Singapore cents per unit, on the back of higher gross revenue and net property income mainly from its Suntec properties.

Total distributable income for the quarter came in at S$64.8 million, 4.8 per cent or S$3 million higher than the year-ago period. This includes a capital distribution of S$6.5 million or 0.244 cent per unit.

Net property income rose 1.9 per cent to S$63 million from the preceding year, mainly attributable to higher contribution from its 60.8 per cent interest in Suntec Singapore Convention & Exhibition Centre (Suntec Singapore).

For the three months ended March 31, gross revenue rose 2.6 per cent to S$90.7 million from the previous year. This was mainly due to a 18.2 per cent increase in revenue from Suntec Singapore to S$21.9 million, and a 2.7 per cent increase in retail revenue from Suntec City mall to S$26 million, partially offset by a 4 per cent drop in office revenue to S$42.9million.

The decrease in office revenue was mainly due to Suntec City Office as a result of transitory downtime from replacement leases commencing progressively from March 2018, said ARA Trust Management (Suntec) Limited, the Reit manager.

As at end March, the overall committed occupancy for the Reit's office and retail portfolios stood at 99.1 per cent and 98.4 per cent, respectively.

Suntec Reit owns the Suntec City mall, certain office units in Suntec Towers, Suntec Singapore, one-third of Marina Bay Financial Centre Towers 1 and 2, and the Marina Bay Link Mall among other properties.

Units in Suntec Reit closed at S$1.90 on Tuesday, down 1.6 per cent, or three Singapore cents.