SPH Reit's Q1 DPU at 1.34 cents
SPH Reit posted distribution per unit of 1.34 Singapore cents for the fiscal first quarter ended Nov 30, 2017, unchanged from a year ago, due to an enlarged unit base.
Its gross revenue for the first quarter grew 1.7 per cent to S$53.5 million, on the back of higher rental income. Net property income rose 1.9 per cent to S$42.2 million.
SPH Reit currently owns two retail malls, Paragon in Orchard and The Clementi Mall in Clementi. Both properties continued their track record of full occupancy amid headwinds in the retail environment.
But Paragon recorded a negative rental reversion of 10.6 per cent for new and renewed leases during the quarter, which were mostly committed a year ago. This represented 4.4 per cent of Paragon's net lettable area. The Clementi Mall has only one tenancy change, which ushered in a replacement tenant of a different trade mix paying rents at 9.8 per cent below the previous tenant.
The overall portfolio rental reversion - based on the weighted average of all expiring leases - was a negative 10.6 per cent for the quarter, compared to a positive 1.2 per cent for new and renewed leases in fiscal 2017.
Susan Leng, CEO of SPH Reit Management, noted that the Singapore economic outlook has improved and retail sales have shown some signs of recovery since June last year.
"If the recent growth momentum sustains, SPH Reit malls will be well-poised to benefit from it," she added. "We remain focused to seek opportunities to continually strengthen the quality and positioning of our properties and create value for unitholders."
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