Singapore-listed retail REIT, SPH REIT (SGX:SK6U), has announced a distribution per unit (DPU) of 1.33 Singapore cents for its 1Q 2016.
Gross revenue for the quarter increased by 2.9% to SGD 52.1 million on the back of higher rental income while net property income (NPI) also came in 5.9% higher at SGD40.1m as compared to 1Q 2015. Income available for distribution to unitholders for the period was SGD35.3m an increase of 3.8%.
“Paragon’s occupancy was 99.8% as at 30 November 2015. The marginal dip from full occupancy was due to timing of amalgamation of space to create a contiguous unit”, said the REIT in a 5 January statement.
“The relatively moderate rental uplift at Paragon of 3.2% for new or renewed leases in 1Q 2016, was mainly due to the prevailing weak retail sentiment”, it added, also highlighting that its other property, The Clementi Mall, remained fully leased. The property saw rental reversion of 5.4% for renewal during the quarter.
The REIT has pointed to ongoing decanting works at Paragon and an AEI opportunity at The Clementi Mall as projects that will strengthen the long-term sustainability of both properties.
“We have identified an asset enhancement initiative for The Clementi Mall which will create a more efficient layout and increase the range and depth of merchandise to drive higher sales”, said Susan Leng, CEO of the REIT’s manager.
Units of SPH REIT last changed hands on the Singapore Exchange at SGD0.955.