SPH REIT reported Monday its fiscal third quarter gross revenue increased 22.2 percent on-year to S$209.6 million as rent relief for tenants in Singapore and Australia declined and on additional revenue from Westfield Marion compared with the year-ago period.
The distribution per unit (DPU) for the 1 March to 31 May period was 1.38 Singapore cents, up 11.3 percent on-quarter, SPH REIT said in a business update filed to SGX. In the year-earlier period, the DPU was half a Singapore cent.
The portfolio’s occupancy was at 98.4 percent, as suburban malls showed resilience, the REIT said. The Clementi Mall and The Rail Mall had full occupancy, it said.
Within Singapore, gross revenue for the quarter increased 16.3 percent on-year to S$156.5 million as the rental relief to eligible tenants significantly impacted by the Covid-19 pandemic decreased, the REIT said. Footfall and tenant sales stabilized and improved, although the 16 May announcement in Singapore of a heightened alert period — which included not allowing dine-in at restaurants — impacted landlords, the REIT said.
The Singapore assets are the Paragon mall, The Clementi Mall and The Rail Mall.
The Paragon mall, located in Singapore’s Orchard Road shopping belt, has seen tenant sales hit due to limited tourist arrivals amid pandemic travel restrictions, but the medical office block has been attracting continued footfall, the REIT said.
In Australia, fiscal third quarter gross revenue jumped 43.9 percent on-year to S$53.1 million, largely on an additional three-months contribution from the Westfield Marion property, acquired in the fiscal second quarter in 2020, the filing said.
“Tenant sales for both [Australian] assets have recovered steadily to near pre-Covid-19 levels as they are not materially impacted by tourism,” the REIT said. “Strategic and dominant location of both assets in their regions offer resilience and stability, underpinned by their strong tenant mix offering essential services.”
The Australian assets are the Westfield Marion in South Australia and Figtree Grove in New South Wales.