SPH REIT's property on Orchard Road, Paragon. (Photo: REITsWeek)SPH REIT's property on Orchard Road, Paragon. (Photo: REITsWeek)

SPH REIT has reported a distribution per unit (DPU) of 0.30 Singapore cents for its 2Q 2020.

This is a decline of 78.7%, compared to the same quarter last year.

This distribution is modest in light of the challenging circumstances arising from the COVID-19 situation in the months ahead, said SPH REIT.

However, net property income (NPI) for the period ended 29 February 2020 was SGD56.5 million, an increase of 23.3% compared to the same quarter last year.

This was mainly due to contribution from the acquisition of Westfield Marion Shopping Centre which was completed on 6 December 2019.

Paragon, The Clementi Mall and The Rail Mall registered positive rental reversions.

Paragon and The Clementi recorded an increase of NPI of SGD1.3 million and SGD0.2 million respectively.

However, The Rail Mall NPI remained flat.

Figtree Grove Shopping Centre recorded an increase of NPI of SGD0.7 million and the recently acquired Westfield Marion contributed SGD8.4 million to the increase in NPI.

As at 29 February 2020, SPH REIT’s portfolio attained an occupancy rate of 98.9%.

The Singapore assets registered an occupancy rate of 99.5%.

Occupancy at Figtree Grove Shopping Centre is 99.2% whilst Westfield Marion has achieved an occupancy rate of 98.4% for Q2 FY2020.

“COVID-19 is an unprecedented crisis that has impacted all businesses across the globe. With this in mind, we have proactively employed various strategies to mitigate the impact of COVID-19 on our tenants’ businesses”, said Susan Leng, CEO of SPH REIT.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.