SPH REIT reports fiscal 4Q net property income rose 12 percent on acquisitions

The four properties in SPH REIT -- Paragon mall, Clementi Mall, The Rail Mall and Figtree Grove Shopping Centre. Image credit: SPH REITThe four properties in SPH REIT -- Paragon mall, Clementi Mall, The Rail Mall and Figtree Grove Shopping Centre. Image credit: SPH REIT

SPH REIT reported Thursday its fiscal fourth quarter net property income rose 11.8 percent on-year to S$45.81 million, mainly on contributions from The Rail Mall and Figtree Grove Shopping Centre.

Gross revenue for the quarter ended 31 August rose 10.2 percent on-year to S$58.37 million, the REIT said in a filing to SGX.

The distribution per unit (DPU) for the fourth quarter was 1.46 Singapore cents, compared with 1.43 Singapore cents in the year-ago period, the filing said.

“We are pleased to close the year with set of positive results,” Susan Leng, CEO of the REIT manager, said in the statement. “As we move
forward into FY2020, we will continue to explore growth; both organic and inorganic.”

But in its outlook, the REIT noted that the global economic growth outlook has weakened further and downside risks have increased.

The Rail Mall and Figtree Grove Shopping Centre were acquired in June 2018 and December 2018, respectively the filing said.

Property operating expenses rose 4.9 percent on-year to S$12.6 million for the quarter, largely due to the acquisitions, the REIT said.

The portfolio had an occupancy rate of 99.1 percent, the REIT said.

For the full fiscal year, SPH REIT posted net property income of S$179.78 million, up 8.3 percent on-year, on gross revenue of S$228.64 million, up 7.9 percent on-year.

The Rail Mall contributed S$3.8 million in net property income for the full year, while Figtree Grove Shopping Centre contributed S$8.5 million, SPH REIT said.

The Paragon mall posted a positive rental reversion of 9.7 percent for new and renewed leases for the fiscal year, which represented 26.6 percent of total net lettable area, the REIT said.

“Paragon’s prime location in Orchard Road benefited from the higher international tourist arrivals and the mall’s visitor traffic improved,” SPH REIT said.

The Clementi Mall posted a positive rental reversions of 5.0 percent for the year, on 10.7 percent of the total net lettable area, while the Rail Mall had positive rental reversions of 9.4 percent, representing 23.5 percent of net lettable area, the REIT said.

The Figtree Grove Shopping Centre posted negative rental reversion of 2.7 percent, but that was favorable compared with the acquisition model which made provisions based on market trends, the filing said.

The DPU for the full fiscal year was 5.60 Singapore cents, up from 5.54 Singapore cents a year earlier, the filing said.

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