SINGAPORE – SPH REIT’s income distributable to unitholders was $33.9m for the third quarter ending May 31.
This translates to a distribution per unit (DPU) of 1.35 cents for 3Q FY14, an increase of 3.1 per cent against IPO forecast. The aggregate DPU of 4.60 cents for the period from 24 July 2013 to 31 May 2014 (YTD period) was higher than forecast by 3.1 per cent.
The 3Q FY14 distribution will be paid to unitholders on August 14.
Steady and resilient operational performance
Both Paragon and The Clementi Mall were fully leased. For the YTD period, gross revenue for both properties was in line with forecast. Net property income of Paragon and The Clementi Mall exceeded forecast by 2.6 per cent and 1.3 per cent respectively, due to proactive management of expenses.
The renewal of all the leases expiring in the financial year ending August 31 was completed ahead of time. Paragon continues to achieve consistently robust performance with rental uplift of 11.5 per cent for the YTD period.
For The Clementi Mall, average rental rates achieved for the 121 expiring leases in YTD period was 5.0 per cent higher than the average rates of the preceding leases typically contracted three years ago.
Capital Management
SPH REIT has a well-staggered debt profile with no refinancing requirement till 2016 and weighted average term to maturity of 4.3 years. It registered gearing level of 26.9 per cent and average cost of debt of 2.33 per cent as at May 31.
Ms Susan Leng, CEO of SPH REIT Management, said: “We are pleased that SPH REIT has continued to outperform forecast in 3Q FY14, rewarding unitholders with higher returns. The good performance is attributable to the strong positioning of both properties in our portfolio, proactive asset management and firm partnership with our tenants. We are confident that our philosophy of continual enhancement to our properties will sustain future performance.”