SINGAPORE (Apr 24): ARA Trust Management, the manager of Suntec REIT, has declared a 1Q19 DPU of 2.434 cents, flat compared to the 1Q18 DPU of 2.433 cents.
Distributable income was a slight 0.8% higher at $65.4 million from $65.0 million a year ago.
Gross revenue dropped by 1.1% to $89.7 million from $90.7 million in the previous year, mainly due to lower convention revenue from Suntec Singapore and lower revenue from 177 Pacific Highway due to the weakened Australian dollar. This was partially offset by an increase in retail and office revenue from Suntec City.
With property expenses increasing 13.5% y-o-y to $31.5 million, net property income came in 7.6% lower at $58.2 million, compared to $63.0 million last year.
Income contribution from joint ventures increased by 5.7% y-o-y to $24.0 million
The REIT’s portfolio includes Suntec City Mall – retail and office units; 60.8% interest in Suntec Singapore Convention & Exhibition Centre; one-third interest in One Raffles Quay; one-third interest in Marina Bay Financial Towers 1 & 2 and Marina Bay Link Mall (collectively MBFC properties); 30% interest in 9 Penang Road; 100% interest in 177 Pacific Highway in Sydney; 50% interest in Southgate Complex, Melbourne; and 50% interest in a commercial building to be developed at 477 Collins Street in Melbourne.
As at Mar 31, the overall committed occupancy for the office and retail portfolios stood at 98.9% and 97.4% respectively.
To recap, the REIT on Apr 17 announced that UBS has pre-leased 100% of 9 Penang Road.
See: DBS keeps Suntec REIT at 'buy' on securing UBS as sole tenant for 9 Penang Road
Chong Kee Hiong, CEO of the manager says, “Looking ahead, the mall is poised to continue to perform well, notwithstanding the continuing challenges in the retail sector.”
“In view of the higher interest rate environment, we will continue with our prudent capital management strategy, improve underlying performance of our assets and source for accretive acquisitions to enhance unitholders value,” adds Chong.
Units in Suntec REIT last traded at $1.86 on Tuesday.
