SINGAPORE (Oct 10): The manager of SPH REIT has declared distribution per unit (DPU) of 1.46 cents for the 4Q19 ended August, some 2.1% higher than DPU of 1.43 cents a year ago.
This bring full-year DPU for FY19 to 5.60 cents, some 1.1% higher than DPU of 5.54 cents in FY18.
4Q19 gross revenue rose 10.2% to $58.4 million, from $53.0 million a year ago.
The increase was mainly due to contributions from The Rail Mail and Figtree Grove Shopping Centre, which were acquired in June 2018 and December 2018, respectively.
Property operating expenses climbed 4.9% to $12.6 million in 4Q19, from $12.0 million a year ago, on the back of the acquisitions.
Consequently, net property income improved by 11.8% to $45.8 million during the quarter, from $41.0 million a year ago.
Income available for distribution for the quarter was $35.4 million, which was 2.3% higher as compared to 4Q18.
As at end-August, cash and cash equivalents stood at $342.7 million, compared to cash and cash equivalents of $36.0 million a year ago.
The increase was mainly attributable to proceeds of $300 million from the issuance of perpetual securities on Aug 30, 2019.
SPH REIT’s portfolio registered an occupancy rate of 99.1%.
The three assets in the Singapore portfolio – Paragon, The Clementi Mall, and The Rail Mall – maintained its high occupancy rate of 99.1% and delivered a positive rental reversion of 9.4%.
Meanwhile, the newly acquired Australian asset, Figtree Grove Shopping Centre, enjoyed an occupancy rate of 99.2%.
As at end-August, SPH REIT’s net asset value (NAV) per unit remained at 95 cents.
Looking ahead, Susan Leng, CEO of the manager, says the establishment of $1.0 billion debt issuance programme this year will give the REIT “greater flexibility to maintain an appropriate capital structure”.
“As we move forward into FY2020, we will continue to explore growth; both organic and inorganic,” she adds.
Units in SPH REIT closed flat at $1.11 on Thursday, before the results announcement.
Year-to-date, the counter has climbed 9.9%, and is currently trading near its highest-ever level since its initial public offering (IPO) at 90 cents in July 2013.
