Lendlease Global Commercial REIT reported Tuesday its fiscal second half net property income increased 10 percent on-year to S$26.53 million on lower rental waivers at the 313@somerset property as Singapore’s economy began to reopen and higher revenue from the Sky Complex property due to foreign exchange.
Gross revenue for the January-to-June period rose 8.5 percent on-year to S$37.04 million, the REIT said in a filing to SGX.
The distribution per unit (DPU) for the fiscal second half came in at 2.34 Singapore cents, up 32.8 percent from 1.76 Singapore cents in the year-ago period, the filing said.
Portfolio occupancy remained high at 99.8 percent, the REIT said.
At the 313@somerset property, tenant sales and visitation increased 33.7 percent and 6.2 percent on-year to S$81.5 million and 11.4 million, respectively, in the fiscal second half, LendLease Global Commercial REIT said.
At the Milan-based Sky Complex property, tenant Sky Italia has made all rental payments in a timely manner, and the asset has proved resilient as the Italian economy has continued to recover this year, the REIT said.
“In the near term, the manager expects the three grade A offices to remain resilient and continue to generate stable income for LREIT’s unitholders,” the filing said.
For the full fiscal year, the REIT reported net property income rose 5.4 percent on-year to S$56.92 million, gross revenue increased 5.6 percent on-year to S$78.65 million and the DPU grew 14.6 percent on-year to 4.68 Singapore cents.
The REIT issued a cautious outlook, noting Singapore tightened restrictions meant to curb the spread of the Covid-19 virus in May as well as in late July.
“The manager expects tenant sales and visitation to remain muted in the coming months. It will continue to focus on targeted campaigns to boost sales, prioritise maintaining occupancy and keep open communication with tenants amid the dynamic retail environment,” the REIT said.
“Demand for retail space will likely remain soft with the continued safe distancing measures being implemented and border closures. In the short term, the weak demand may continue to weigh on rental performance” in Singapore, the REIT said.