Artist's impression of Mirvac Group's and Suntec REIT's Olderfleet, 477 Collins Street. (Photo: Mirvac Group/Suntec REIT)

Suntec REIT has announced a DPU of 2.493 Singapore cents for its 2Q 2017, a fall of 0.3% year-on-year from the 2.501 cents achieved in the corresponding period of 2016.

Gross revenue and net property income for the period increased by 10.6% and 12.8% year on year to SGD87.3 million (USD64 million) and SGD59.4 million respectively.

Subsequently distributable income of SGD66.0 million for 2Q 2017 came in 4.3% higher compared to 2Q 2016.

The REIT has cited an enlarged unit base, which included approximately 95.7 million new units issued on 29 May 2017, as part of the reason for the quarter’s DPU figure.

“Notwithstanding the uncertainties in the macroeconomic environment, we are pleased to have delivered a higher distributable income and DPU for the first half of 2017”, said Chan Kong Leong, CEO of the REIT’s manager, in reference to the DPU of 4.918 cents for 1H17, which was 0.9% higher year-on-year.

“Our assets in Australia, 177 Pacific Highway and Southgate Complex contributed to our robust performance this quarter”, he added.

As at 30 June 2017, Suntec REIT’s Singapore office portfolio achieved an overall committed occupancy of 98.8% while in Australia, the committed occupancies for 177 Pacific Highway and Southgate Complex’s office component were 100% and 93.5% respectively.

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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.