SPH REIT's Q1 net property income up 5.9% year-on-year

SPH REIT's Q1 net property income up 5.9% year-on-year

SPH REIT Management Pte Ltd (SPH REIT) has announced in a statement that its gross revenue for the first quarter, which ended Nov 30 last year (1Q 2016), grew by 2.9 per cent.

In its statement, SPH REIT revealed that gross revenue grew $1.5m to $52.1m, on the back of higher rental income.

With proactive management of expenses, net property income of $40.1m was $2.2m (5.9 per cent) higher in 1Q 2016 compared to the same period last year (1Q 2015).

Income available for distribution to unitholders was $35.3m for 1Q 2016, an increase of $1.3m (3.8 per cent) compared to the corresponding quarter last year.

Distribution per unit (DPU) for 1Q 2016 was maintained at 1.33 cents, same as 1Q 2015. The 1Q 2016 distribution will be paid to unitholders on Feb 15.

Steady and resilient operational performance

Both of SPH REIT's properties, Paragon and The Clementi Mall, continued to achieve positive rental reversion.

Paragon's occupancy was 99.8 per cent as at Nov 30 last year. The marginal dip from full occupancy was due to timing of amalgamation of space to create a contiguous unit. The relatively moderate rental uplift at Paragon of 3.2 per cent for new or renewed leases in 1Q 2016, was mainly due to the prevailing weak retail sentiment.

The Clementi Mall remained fully leased, with positive rental reversion of 5.4 per cent for renewal during the quarter.

Paragon continued to see leasing demand and welcomed several international retailers such as Loewe, Ralph Lauren Children, Lalique, and APM Monaco to the mall.

SPH REIT said it remains focused on its effort to revitalise the tenant mix, strengthen various clusters and enhance the premier positioning of Paragon.

Chief executive of SPH REIT Susan Leng said: "We are pleased that SPH REIT has continued to deliver steady financial and operating performance. To sustain returns to unitholders, we will continue to build firm partnership with tenants and pursue opportunities to reinforce the positioning of our properties."

ssandrea@sph.com.sg

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