SINGAPORE (Jan 4): The manager of SPH REIT has announced a 1Q19 distribution per unit (DPU) of 1.34 cents, which remains unchanged from a year ago and will be paid to unitholders on Feb 15.
Gross revenue for the quarter grew 0.6% to $53.8 million from $53.5 million previously despite lower rental from Paragon, which was offset by higher contributions from The Clementi Mall and The Rail Mall.
Property operating expenses grew 6.5% to $12 million compared to $11.3 million a year ago as a result of higher marketing expenses in 1Q.
As such, net property income (NPI) fell 1% or $0.4 million to $41.8 million compared to the pr evious year, with total return for 1Q19 decreasing by 2.3% to $31 million or $0.7 million against the same quarter last year.
All in all, SPH REIT’s properties maintained an overall occupancy of 99.2% as at 1Q19 with a positive rental reversion of 9.7%. This was largely driven by Paragon, which recorded positive rental reversion of 10.1% for new and renewed leases over the latest quarter.
Going forward, the manager sees its latest joint acquisition of Figtree Grove Shopping Centre to provide full contribution from 2H19.
“The property is an established sub-regional shopping centre in Wollongong, New South Wales, Australia and is a strategic fit with SPH REIT's portfolio of quality assets. This acquisition provides SPH REIT with the opportunity to further create value and continue to deliver long term returns for unitholders,” says Susan Leng, CEO of the REIT manager.
Units in SPH REIT closed at $1.02 on Friday.
