SINGAPORE - SPH REIT Management Pte. Ltd. ("SPH RM" or the "Manager"), the Manager of SPH REIT, reported that SPH REIT's distribution to unitholders was $33.5m for the first quarter ended Nov 30, 2014 ("1Q 2015"). This translated to a distribution per unit ("DPU") of 1.33 cents for 1Q 2015, an increase of 2.3 per cent year-on-year. The 1Q 2015 distribution will be paid to unitholders on Feb 13.
Steady and resilient operational performance
Gross revenue for 1Q 2015 improved by $0.9 million (1.8 per cent) to $50.6 million, while net property income of $37.9 million for 1Q 2015 was $1.7m (4.9 per cent) higher than the same quarter last year. The improvement was on the back of higher rental income and proactive management of expenses in both Paragon and The Clementi Mall.
Both Paragon and The Clementi Mall are fully leased. Paragon continues to achieve consistently robust performance with rental uplift of 12.5 per cent for new or renewed leases in 1Q 2015. The Clementi Mall completed the first lease renewal cycle in 2014 with 84.2 per cent of lease expiring (by net lettable area) in 2017. The Clementi Mall opened in two phases in January 2011 and March 2011.
Capital Management
SPH REIT has a well-staggered debt maturity profile with no refinancing requirement till 2016 and weighted average term to maturity of 3.8 years. It registered gearing level of 26.0 per cent and average cost of debt of 2.35 per cent as at Nov 30, 2014.
Ms Susan Leng, CEO of SPH REIT Management Pte. Ltd., said, "We are pleased that SPH REIT has continued to turn in a steady performance, amidst a modest domestic economic outlook and challenging retail environment.
"We are confident that the well-established positioning of both properties, firm partnership with our tenants and philosophy of continual asset enhancement will enable us to be at the forefront of the competitive retail arena and deliver sustainable returns to unitholders.
"The chiller decanting project at Paragon is progressing on schedule. In addition, the tenancies for the newly-created net lettable space of about 5,000 square feet have been committed and will contribute close to S$1 million of rental income annually from FY2016 onwards."
