SINGAPORE (Oct 23): The manager of Suntec Real Estate Investment Trust (Suntec REIT) has announced distribution per unit (DPU) of 2.365 cents for the 3Q19 ended September, some 5.1% lower than DPU of 2.491 cents in 3Q18.
Distributable income for 3Q19 dipped marginally to $66.2 million, some 0.4% lower than a year ago.
The decline was mainly due to a $3.5 million drop in capital distribution, related to the sale proceeds from the disposal of Park Mall in 2015.
Excluding the lower capital distribution, distributable income from operations was 5.7% higher at $59.7 million for 3Q19, while DPU from operations was a more modest increase of 0.8% to 2.133 cents due to an enlarged unit base.
3Q19 gross revenue rose 3.5% to $91.9 million, from $88.8 million a year ago.
The increase was mainly due to a $2.6 million increase in revenue contribution from Suntec City, and maiden contribution of $0.9 million from 55 Currie Street, which was acquired on Sept 10.
Net property income (NPI) was 3.2% higher at $58.4 million for 3Q19, compared to NPI of $56.5 million in 3Q18.
Income contribution from joint ventures rose 14.4% to $26.5 million, due to one-off compensation received and better performance of Marina Bay Financial Centre Towers 1 and 2, and the Marina Bay Link Mall (collectively known as MBFC Properties) as well as stronger performance of One Raffles Quay and Southgate Complex.
As at end-September, cash and cash equivalents stood at $127.7 million.
The overall committed occupancy for the Singapore office portfolio stood at 99.0% as at Sept 30, 2019.
Looking ahead, the manager says it expects Suntec REIT’s Singapore office portfolio – especially Suntec City Office, which had achieved six consecutive quarters of positive rent reversions – will continue to perform well.
Meanwhile, on Suntec City’s retail performance, Chong Kee Hiong, CEO of the manager, says: “We are pleased to report that we have achieved nine consecutive quarters of positive rent reversions which underpinned the 4.6% increase in revenue for the quarter. The key operation indicators remained positive with footfall and tenants’ sales growing 3.8% and 0.8% year-on-year respectively.”
“The mall is expected to continue to perform well, notwithstanding the continuing challenges in the retail sector,” he adds.
As at 12.45pm, units in Suntec REIT are trading 1 cent lower at $1.86.
