Suntec REIT's flagship property in Singapore, Suntec City. (Photo: REITsWeek)Suntec REIT's flagship property in Singapore, Suntec City. (Photo: REITsWeek)

Singapore-listed retail and office REIT, Suntec REIT, announced on 21 July that it has achieved a distribution per unit (DPU) of 2.501 Singapore cents for its 2Q 2016, virtually unchanged from the 2.50 cents paid for 2Q 2015.

Gross revenue and net property income for the period declined by 3.1% and 7.5% year-on-year to SGD78.9 million and SGD52.7 million respectively while distributable income came it at SGD63.3 million, 0.7% higher compared to 2Q 2015.

“We are pleased to report that despite the divestment of Park Mall, distributable income from operations declined by a slight 2.7% due to the increase in contribution from Suntec City mall with the completion of the asset enhancement works in June 2015”, said Yeo See Kiat, CEO of the REIT’s manager.

“Including a capital distribution of SGD8.0 million from the sale proceeds of Park Mall, the distributable income of SGD63.3 million was 0.7% higher year-on-year”, he added.

Overall committed occupancy for the office and retail portfolio stood at 98.9% and 97.7% respectively as at 30 June 2016.

Suntec REIT’s gearing was at 34.7% as at 30 June 2016 with a financing cost of 2.77% for 2Q 2016.

“We are pleased to report that the construction of 177 Pacific Highway in North Sydney is on-track for completion in August 2016”, said Yeo, adding that the REIT is also making good progress with the redevelopment plans for Park Mall, and will be taking back the premises by end September 2016.

Units of Suntec REIT finished the trading day about 0.8% lower from its previous close on the Singapore Exchange to end at SGD1.78.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.