SINGAPORE (April 26): The manager of Suntec REIT has declared a 1Q17 distribution per unit (DPU) of 2.425 cents, up 2.3% as compared to the 2.371 cents posted in 1Q16.
This includes a capital distribution of $3 million or 0.118 cents per unit.
Gross revenue over the quarter grew 12.9% to $88.4 million, driven mainly by a 34.3% increase in gross office revenue to $44.6 million on contribution from the REIT’s Sydney asset, 177 Pacific Highway, which achieved its practical completion in August 2016.
The higher gross office revenue was partially offset by 2.3% lower retail revenue from Suntec City mall at $25.3 million as well as a 3.6% decline in revenue from Suntec Singapore.
Similarly due to the contribution from 177 Pacific Highway, net property income was 14.6% higher at $61.8 million from $54 million a year ago.
The total income contribution from joint ventures comprising the ORQ, MBFC Properties and Southgate Complex for the quarter was $24.3 million, representing a 9.2% increase which was mainly due to higher contributions from Southgate Complex.
Net financing cost fell 27.1% to $14.9 million due to a one-time write-off of unamortised transaction costs in relation to the redemption of convertible bonds in 1Q16.
As such, total distributable income grew 3.1% to $61.8 million for the quarter.
As at end March, the committed occupancy for Suntec REIT’s office and retail portfolio stood at 98.9% and 98% respectively.
“Despite the soft retail market, we are pleased to report that Suntec City’s Mall operational performance has improved in 1Q 2017. The overall committed occupancy has increased to 98.4% while footfall increased 7.3% year-on-year. Tenant sales per sq ft has also grown 4.3% year-on-year,” says Chan Kong Leong, CEO of the manager.
“We will continue our active tenant adjustments to fine tune the trade mix and further enhance the positioning of Suntec City Mall,” he adds.
Units of Suntec REIT closed flat at $1.76 on Tuesday.
