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

Data from SPH REIT’s latest results have been updated into the Singapore REITs table.

SPH REIT has reported net property income (NPI) of SGD181.9 million (USD133 million) for its FY2020, an increase of 1.2% compared to SGD179.8 million last year.

The increase was the result of added contribution from newly acquired assets in Australia which more than offset the declined contribution from Singapore assets brought about by COVID-19, said the REIT.

Performance of SPH REIT’s Singapore assets was significantly impacted by COVID-19.

SPH REIT rendered rent relief amounting to SGD31.8 million to eligible tenants in Singapore to assist them in riding through this pandemic.

This resulted in a decline in NPI of 16.4% to SGD143.2 million in FY2020 for the Singapore assets.

Footfall declined by an average of 27.7% at SPH REIT’s Singapore assets, and 8.3% at its Australia assets year-on-year.

Singapore’s Paragon registered a year-on-year decline in footfall of 27.4% to 13.8 million and a decline in tenant sales of 28.3% to SGD508 million.

The Clementi Mall, which is located in a residential suburb, was impacted by work from home arrangements and saw a drop in visitor traffic of 27.8% to 22.8 million.

Tenant sales, however, registered a lower decline of 12.7% to SGD207 million.

As at 31 August 2020, SPH REIT’s gearing was at 30.5% with no refinancing due till June 2021.

SPH REIT has opted to defer 0.52 cents, a part of the FY2020 income, to FY2021, which is allowed under COVID-19 measures announced by IRAS.

In addition, for financial flexibility, an amount of SGD15.0 million of capital allowance was utilised to provide for capital expenditure and other working capital requirements, said the REIT.

As such, DPU for Q4 FY2020 is 0.54 cents, representing an increase of 8.0% over that of the last quarter, while full-year DPU is at 2.72 cents.

Q4 FY2020 distribution will be paid to unitholders on 20 November 2020.

SPH REIT was last done on the Singapore Exchange (SGX) at SGD0.86.

By Shariffa Al-Habshee

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