Suntec REIT announced on 26 April that it has recorded a DPU of 2.425 Singapore cents for its 1Q FY17, 2.3% higher than the 2.371 cents reported in the corresponding period of 2016.

Gross revenue and net property income for the period increased by 12.9% and 14.6% to SGD88.4 million (USD63 million) and SGD61.8 million respectively, while distributable income came in at SGD61.8 million - 3.1% higher compared to 1Q FY16.

“Our asset in Sydney, 177 Pacific Highway, which received practical completion in August 2016, contributed to our robust performance this quarter”, said Chan Kong Leong, CEO of the REIT’s manager, in a statement on the results.

As at 31 March 2017, Suntec REIT’s Singapore office portfolio featured an overall committed occupancy of 99.4%, with committed occupancies for Suntec City Office, One Raffles Quay and Marina Bay Financial Centre Properties at 99.0%, 100% and 99.8% respectively.

In Australia, the REIT’s committed occupancies for 177 Pacific Highway, and office components of the Southgate Complex were 100% and 89.7% respectively.

“We expect the occupancy in Australia to strengthen as demand continues to be positive in the Sydney and Melbourne markets amidst the stock withdrawals and low level of new supply”, Chain added.

The REIT’s aggregate gearing ratio as at 31 March 2017 was at 37.7% with an all-in financing cost of 2.42%

Portfolio weighted average lease expiry (WALE) for its office and retail segments stood at 4.02 and 2.27 years respectively.

“We will continue our proactive asset management to maintain our high occupancy level as the Singapore office market is expected to remain under pressure given the impending supply and shadow space”, said Chan.

Suntec REIT finished the trading day unchanged from its previous close on the Singapore Exchange at SGD1.755.