Singapore-listed retail REIT, SPH REIT (SGX:SK6U), announced on 7 July that it has achieved gross revenue of SGD51.2 million for its 3Q 2015, 1.6% higher from the corresponding period in 2014.
SPH REIT has attributed the improvement to higher rental income in both Paragon and The Clementi Mall. Subsequently net property income (NPI) for the period grew 4.3% to SGD39.3 million.
However distribution per unit (DPU) for the quarter was maintained at 1.35 Singapore cents which is unchanged from the previous year.
Paragon's occupancy stands at 99.8% as at 31 May 2015 due to an unexpected lease termination of an office unit but the property is now fully committed, said the REIT. The Clementi Mall remained 100% leased.
“Paragon continues to achieve consistently robust performance with rental uplift of 9.8% for new or renewed leases in the YTD 3Q 2015”, said SPH REIT in a statement on the results. However The Clementi Mall recorded a negative rental reversion of 11.4% on 3.4% of total net lettable area.
SPH REIT indicated that it will embark on a asset enhancement initiative to create additional lettable space. “Barring any unforeseen circumstances, the two properties are expected to remain resilient and turn in a steady performance”, said Susan Leng, CEO of the REIT’s manager.
SPH REIT’s gearing as at 31 May 2015 stands at 26% while average cost of debt is at 2.55%.
Units of SPH REIT last changed hands on the Singapore Exchange at SGD1.04.