SPH REIT reports fiscal 3Q net property income rose 14 percent on acquisitions

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SPH REIT reported Thursday its fiscal third quarter net property income rose 14.2 percent on-year to S$46.3 million, mainly on contributions from the acquisitions of The Rail Mall in Singapore and the Figtree Grove Shopping Centre in New South Wales, Australia.

The acquisition of The Rail Mall was completed in June 2018 and the Figtree Grove Shopping Centre purchase was completed in December 2018, the filing said.

Gross revenue for the quarter ended 31 May rose 12.7 percent on-year to S$58.33 million, the REIT said in a filing to SGX Thursday.

The distribution per unit (DPU) for the quarter rose 1.5 percent on-year to 1.39 Singapore cents, from 1.37 Singapore cents in the year-ago quarter, the filing said.

The REIT’s portfolio had occupancy of 99 percent as of quarter’s end, the filing said.

“SPH REIT continues to maintain high occupancy and delivers stable distribution,” Susan Leng, CEO of SPH REIT Management, the REIT’s manager, said in the statement.

“The tourist arrivals and spend for 2018 ended on a positive note and we believe Paragon would stand to benefit with this trend,” she added. “The Clementi Mall is well poised in the suburban to continue to serve its immediate catchment.”

The Paragon mall, an upscale shopping center and medical office property located in the Orchard Road shopping belt, had positive rental reversion of 8.6 percent for new and renewed leases for the fiscal year-to-date, representing around 21.4 percent of the property’s net lettable area, SPH REIT said.

Net property income from Paragon rose 3.5 percent on-year to S$34.17 million, the filing said.

The Clementi Mall and The Rail Mall posted positive rental reversions of 5.8 percent and 9.1 percent respectively, year-to-date, the filing said.

The Clementi Mall posted net property income rose 6.1 percent on-year to S$8.01 million in the quarter, while the Rail Mall’s net property income was S$988,000. Figtree Grove Shopping Centre posted net property income of S$3.16 million for the quarter.

The overall portfolio had positive rental reversion of 8.4 percent on growth in overall tenant sales, the REIT said.

SPH REIT’s portfolio has four assets: Paragon, The Clementi Mall and The Rail Mall in Singapore, and an 85 percent stake in Figtree Grove Shopping Centre in Australia.

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