SPH REIT posts 13% lower DPU of 1.20 cents for 1QFY2021

The manager of SPH REIT has reported distribution per unit (DPU) of 1.20 cents for the 1QFY2021 ended November, 13% lower than the 1.38 cents posted in 1QFY2020.

Quarter-on-quarter, the DPU marked a 122% increase compared to the 0.54 cents declared in 4QFY2020.

The REIT reported overall gross revenue for 1QFY2021 grew 10.8% y-o-y to $66.6 million mainly due to Westfield Marion’s contribution of $12.8 million.

In Singapore, 1QFY2021 gross revenue fell 11.3% y-o-y to $49.7 million. This was primarily attributable to the rental relief granted to tenants who were significantly impacted by the COvid-19 pandemic.

However, footfall and tenant sales across the malls recovered during the year-end festive period. Paragon continues to be impacted by border restrictions, while The Clementi Mall remains impacted by work-from-home (WFH) arrangements.

1QFY2021 gross revenue for Australia grew $12.8 million to $16.9 million driven by the acquisition of Westfield Marion in South Australia in 2QFY2020.

The manager says tenant sales for both assets are “recovering steadily” to near pre-Covid-19 levels.

In a business update, SPH REIT reported a portfolio occupancy rate of 97.9% and a weighted average lease expiry (WALE) of 5.5 years by net lettable area (NLA) or 2.6 years by gross rental income.

It adds that its refinancing of $215 million loans maturing by July 2021 “is in progress” and that it has revolving credit facility lines of $225 million available.

As at Nov 30, 2020, the REIT has a debt maturity profile of $1.3 billion.

Unitholders can expect to receive their dividends by Feb 26.

As at 9.08am, units in SPH REIT are trading 2 cents higher or 2.4% up at 85.5 cents.