SPH Reit posts Q3 DPU of 1.39 cents, up from 1.37 cents

Contributions from its purchases of malls in Singapore and Australia boosted results for retail landlord SPH Reit in its third quarter ended May 31.

Distribution per unit (DPU) crept up to 1.39 cents from 1.37 cents in the preceding year, and Q3 income available for distribution grew 4.8 per cent to $36.8 million from the previous year.

Payment date is Aug 22.

For the three months ended May 31, gross revenue increased 12.7 per cent to $58.3 million from the year-ago period, thanks to contributions from The Rail Mall and Figtree Grove Shopping Centre in New South Wales. They were acquired in 2018 on June 28 and Dec 21 respectively. Net property income rose 14.2 per cent to $46.3 million from the previous year.

For the nine months ended May 31, DPU rose to 4.14 cents, up from 4.11 cents. Income available for distribution in the nine months rose 1.8 per cent to $109.7 million.

The Reit’s committed occupancy by net lettable area was at 99 per cent as at May 31. Fiscal year-to-date, the overall portfolio registered a positive rental reversion of 8.4 per cent which it said was due to growth in overall tenant sales.

Susan Leng, chief executive of SPH Reit’s manager, said: “The tourist arrivals and spend for 2018 ended on a positive note and we believe Paragon would stand to benefit from this trend. The Clementi Mall is well poised in the suburban to continue to serve its immediate catchment. The Rail Mall is a unique cluster of shop units, with opportunity for us to further strengthen its current F&B mix and create a differentiated positioning for the asset. Our focus remains to drive long-term value of our properties and deliver sustainable returns for our unitholders.”

SPH Reit said that it plans to keep its malls relevant to consumers’ changing demands, implement asset enhancement initiatives and explore acquisition opportunities.

It has one applicable right of first refusal property The Seletar Mall.

SPH Reit currently owns Paragon Mall, The Clementi Mall and The Rail Mall in Singapore and has an 85 per cent stake in Figtree Grove Shopping Centre.

SPH Reit’s sponsor, Singapore Press Holdings, publishes The Business Times.

Its units closed at $1.120 on Thursday, up $0.010 or 0.9 per cent before the results were announced.

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