Singapore

SPH Reit’s H2 distribution per unit nearly trebles

The manager of SPH Reit yesterday announced distribution per unit (DPU) of 1.58 Singapore cents for the fourth quarter ended August.

This brings DPU for the second half of FY2021 to 2.94 cents, up 184.6 per cent from a DPU of 1.04 cents in H2 last year.

Gross revenue climbed 27 per cent year-on-year during the six-month period to $137.2 million, while net property income was up 24.6 per cent to $97.8 million.

For the full year, the group also saw gross revenue climb 14.8 per cent to $277.2 million, while net property income increased 11.4 per cent to $202.6 million.

SPH Reit noted that FY2021 had a full-year contribution from Westfield Marion - a shopping centre in South Australia - which was acquired in the prior year with an incremental net property income of $9.3 million.

It added that the stabilisation of the Covid-19 situation and gradual recovery of tenant sales meant that rental assistance granted to eligible tenants in FY2021 was lower than that in the previous year.

For the full year, SPH Reit's DPU nearly doubled to 5.40 Singapore cents, inclusive of 0.52 cents deferred from FY20.

As at Aug 31, SPH Reit had portfolio occupancy of 98.8 per cent.

It noted that the soft retail leasing sentiments impacted renewals and new leases, resulting in a negative portfolio rental reversion of 8.4 per cent.

The portfolio's weighted average lease expiry stood at 5.4 years by net lettable area and 2.7 years by gross rental income.

Ms Susan Leng, chief executive of SPH Reit, said: "Notwithstanding the roll-out of vaccinations, both in Singapore and globally, which will lead to the relaxation for international travel restrictions, full recovery for leisure travel will still take some time."

She added that the company is "cautiously optimistic" and will continue to engage with stakeholders to "proactively manage the disruptions brought about by Covid-19".

SPH Reit units closed half a Singapore cent, or 0.5 per cent, higher at 93 cents yesterday, before the announcement. - THE BUSINESS TIMES

BUSINESS & FINANCE