Singapore-listed retail and office REIT, Suntec REIT, announced on 21 April that it has achieved a distribution per unit (DPU) of 2.37 Singapore cents for its 1Q 2016, an increase of 6.3% than the 2.230 cents posted in the corresponding period of 2015.
Distributable income for the period was SGD60.0 million, 7.2% higher compared to 1Q 2015 while net property income (NPI) came in 5.1% higher at SGD53.97 million. Gross revenue for the period saw an increase of 5.2% to SGD78.34 million.
The REIT has attributed the numbers to higher revenue and NPI from the completion of asset enhancement initiatives at Suntec City and Suntec City Office.
“During the first quarter of 2016, we have renewed and replaced approximately 225,000 square feet of leases, leaving us with a balance of only 6.0% due to expire in 2016”, said Yeo See Kiat, CEO of the REIT’s manager. “Looking ahead, we expect the performance of our office portfolio to be stable in 2016”, he added.
Suntec REIT’s overall committed occupancy for the office and retail portfolio were 98.3% and 98.6% respectively as at 31 March 2016. Gearing as at 31 March 2016 was at 34.7% with an average all-in financing cost of 2.92%.
Units of Suntec REIT finished the trading day about 2% higher from its previous close on the Singapore Exchange to end at SGD1.75.