SPH REIT reports 0.7% increase in DPU for 3Q 2017

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Singapore-listed SPH REIT has achieved a distribution per unit (DPU) of 1.37 Singapore cents for its 3Q 2017, an increase of 0.7% year-on-year against the 1.36 cents achieved for 3Q 2016.

Gross revenue for the period grew by 2.1% to SGD53.3 million (USD38.6 million) on the back of higher rental income, while net property income (NPI) came in 5.4% higher at SGD42.2 million.

Correspondingly income available for distribution to unitholders increased by 2% year-on-year to SGD35.7 million.

The retail REIT has attributed the quarter’s set of results to positive rental reversion, and full occupancies at both of its properties, which are namely Paragon and The Clementi Mall.

The former saw rental uplift of 3.6% for new and renewed leases in year-to-date (YTD) 3Q 2017, while The Clementi Mall recorded a positive rental reversion of 3.7%.

The REIT’s weighted average lease expiry (WALE) as at 31 May 2017 was 2.4 years by net lettable area (NLA) and 2.2 years by gross rental income.

SPH REIT’s gearing level was 25.6% as at 31 May 2017, with an average cost of debt of 2.81% per annum for YTD 3Q 2017, with 85.9% of the total borrowing on fixed rate basis.

Units of SPH REIT finished the trading day unchanged from their previous close on the Singapore Exchange to end at SGD0.995.

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About Author

Ridzwan Rahmat has been analysing Singapore-listed REITs and business trusts, since 2008. For disclosure purposes, Ridzwan is currently vested in Mapletree Greater China Commercial Trust, Mapletree Industrial REIT and Mapletree Logistics Trust.

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