Suntec REIT reported Wednesday its first quarter net property income fell 7.6 percent on-year to S$58.20 million on lower revenue from Suntec Singapore and 177 Pacific Highway. The results missed a forecast from Daiwa.
Gross revenue for the quarter ended 31 March fell 1.1 percent on-year to S$89.68 million, the REIT said in a filing to SGX.
“This was mainly due to lower convention revenue from Suntec Singapore and lower revenue from 177 Pacific Highway due to the weakened Australian dollar. This was partially offset by an increase in retail and office revenue from Suntec City,” the REIT said.
The REIT said it also contributed S$4.8 million to Suntec City Office’s sinking fund for upgrading works, weighing on net property income.
The distribution per unit, or DPU, was 2.434 Singapore cents, nearly flat with the year-ago quarter, Suntec REIT said.
Daiwa had forecast net property income of S$61.0 million on revenue of S$91.6 million, with a DPU of 2.47 Singapore cents.
Occupancy for the office and retail portfolios were 98.9 percent and 97.4 percent respectively, the REIT said.
In its outlook, Suntec REIT expected the occupancy and rental levels for the Australian assets would remain high amid strong demand and limited supply.
For the Singapore office market, “given the limited supply coming on-stream in 2019, the occupancy and rental levels for the Singapore office portfolio are expected to further improve,” it added.
Suntec REIT said its mall was expected to continue to perform well despite challenges in the retail sector.