SPH REIT's The Clementi Mall (Photo: REITsWeek)SPH REIT's The Clementi Mall (Photo: REITsWeek)

SPH REIT has achieved a DPU of 1.34 Singapore cents for its 1Q 2017, an increase of 0.8% from the 1.33 cents reported in the corresponding period of 2016.

This came on the back of a 3.0% increase in distributable income, which was recorded at SGD36.4 million (USD25.3 million).

Correspondingly gross revenue and net property income (NPI) increased by 0.9% and 3.3% year-on-year to SGD52.6 million, and SGD41.4 million respectively.

Both of the Singapore-listed retail REIT’s properties, Paragon and The Clementi Mall, maintained 100% occupancy for the quarter.

Paragon achieved a rental uplift of 4.4% for new and renewed leases in 1Q 2017, while The Clementi Mall recorded a positive rental reversion of 9.1% for 1Q 2017.

SPH REIT’s gearing as at 30 November 2016 was at 25.7%, with a weighted average term to maturity of 2.8 years, and an average cost of debt of 2.81% per annum for the quarter.

85.9% of the REIT’s total borrowings are on fixed rate basis.

“The retail environment will remain challenging in 2017 amid modest economic growth and heightened uncertainties of the global environment”, said Susan Leng, CEO of the REIT’s manager, in a statement on the results.

“We will continue to seek opportunities to create value and strengthen long-term sustainability of the properties”, she added.

Units of SPH REIT finished the trading day about 0.5% lower from its previous close on the Singapore Exchange to end at SGD0.97.

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.