SPH Reit announces year-on-year growth in gross revenue for Q2

SINGAPORE - SPH Reit, the property arm of Singapore Press Holdings, has announced a 1.2 per cent year-on-year growth in gross revenue to $53.1 million for Q2 this year.

This is thanks to higher rental income from both Paragon and The Clementi Mall. Paragon's occupancy rate was 99.9 per cent as at Feb 29, with a moderate rental uplift of 4.3 per cent for new and renewed leases in H1 ended Feb 29. The Clementi Mall remained fully leased as at Feb 29, with positive rental reversion of 3.1 per cent in the same period.

SPH Reit's net property income (NPI) of $40.6 million was 0.9 per cent higher than the same quarter last year.

The quarter's results included additional one-off provision for prior year property tax based on the assessment received. Excluding the effect of prior year provision, SPH Reit's NPI was $41.5 million, a year-on-year increase of $1.3 million.

Income available for distribution to unitholders increased marginally by 0.2 per cent per cent to $36.4 million. Distribution per unit (DPU) was maintained at $1.40, the same amount paid in the same quarter last year. The aggregate DPU for H1 was $2.73. The Q2 2016 distribution will be paid to unitholders on May 13.

"SPH REIT has continued to deliver a steady performance amid modest economic outlook and challenging retail environment. Paragon achieved healthy rental reversion, despite several quarters' of rental decline reported for Orchard Road," chief executive of SPH Reit Management, Susan Leng said.

"We remain focused on opportunities to create value and strengthen long-term sustainability of the properties."