SINGAPORE (Jan 5): The manager of SPH REIT reported DPU for 1Q18 ended Nov held steady at 1.34 cents compared to the same quarter last year.
Gross revenue for 1Q18 grew 1.7% to $53.5 million on the back of higher rental income from both Paragon and Clementi Mall.
Property operating expenses of $11.3 million was 1.2% higher than 1Q17 as increase in property tax, utilities and maintenance expenses were cushioned by lower marketing expenses.
Consequently, net property income came in 1.9% higher at $42.2 million compared to 1Q17.
Finance cost increased marginally by 1.0% to $6.0 million.
Income available for distribution to unitholders increased by 0.5% to $36.5 million for 1Q18.
SPH REIT Management said both properties continued their track record of full occupancy amid headwinds in the retail environment.
Although overall portfolio registered rental reversion of -10.6% for new and renewed leases in 1Q18, mostly committed a year ago in the period of retail sales downturn. This represented 3.7% of total portfolio net lettable area.
As at Nov 30, 2017, SPH REIT has a gearing level of 25.4% and weighted average term to maturity of 1.8 years.
It registered an average cost of debt of 2.84% p.a. for 1Q18.
In its outlook, Susan Leng, CEO of SPH REIT Management, says Singapore's economic outlook has improved and retail sales have shown some signs of recovery since June 2017.
If the recent growth momentum sustains, SPH REIT malls will be well-poised to benefit from it, she adds.
Units in SPH REIT closed at $1.07 on Friday.
