Singapore-listed residential REIT, Saizen REIT (SGX:T8JU), announced on 11 February that it has posted a distribution per unit (DPU) of 2.83 Singapore cents for the six-month financial period ended 31 December 2015, a decrease of 8.7% from the 3.10 cents achieved in the corresponding period a year ago.
“The decrease in DPU for year-to-date December 2015 was mainly due to the depreciation of the JPY against the SGD, as well as an increase in the total number of units as a result of the application of the distribution reinvestment plan to the distribution in respect of 2H FY2015”, said the REIT.
“Additionally, an increase in repairs and renovation expenses further contributed to the decrease in DPU for year-to-date December 2015 as compared to DPU for year-to-date December 2014”, it added.
Average occupancy rate of Saizen REIT’s properties was 91.2%, a slight dip from the 91.6% in 1Q 2016.
Overall rental reversions of new contracts entered into in 2Q 2016 was lower by about 1.7% from previous contracted rates. “This was primarily attributable to the reversion of a commercial contract in Sapporo, which was rented out at a substantially lower rate after taking into consideration the prolonged vacancy of the unit since 2009”, said the REIT.
Units of Saizen REIT last changed hands on the Singapore Exchange at SGD1.09.