SINGAPORE (Oct 11): SPH REIT announced that its 4Q18 DPU saw a slight increase to 1.43 cents, compared to 1.42 cents in 4Q17.

This brings FY18 DPU to 5.54 cents, 0.2% higher compared to 5.53 cents in FY17.

Revenue for the quarter was 0.2% higher at $53.0 million from $52.9 million last year.

The Clementi Mall saw revenue increase by 2.2% y-o-y to $10.4 million, while Paragon’s revenue declined by 2.2% y-o-y to $41.7 million.

During the quarter, the group realised revenue of $0.84 million from The Rail Mall, which was absent last year.

As property expenses increased by 8% y-o-y to $12.0 million, net property income for 4Q18 was 1.9% lower at $41.0 million.

Paragon registered a rental reversion of -3.7% for new and renewed leases for FY18, while The Clementi Mall saw a positive rental reversion of 3.0% with renewal of 5.9% of its NLA.

During the quarter, the group registered profit from income support of $0.44 million, compared to a loss of $0.10 million in the previous year.

Writedown of intangible asset decreased by 79.9% to $0.88 million from $4.35 million a year ago, due to a lower amount of drawdown as a result of better performance of The Clementi Mall.

As at Aug 31, the REIT’s portfolio is valuated at $3.37 billion, including newly acquired The Rail Mall.

Susan Leng, CEO of SPH REIT Management, says, “We are pleased to update that the three-year phased AEI project at Paragon involving the decanting of area occupied by Air Handling Units (AHU), to create about 7,000 sq ft of additional lettable area, has been completed as scheduled. This project will contribute to approximately $0.9 million in revenue per annum.”

Looking forward, the manager says that it will continue to proactively manage the properties to deliver sustainable returns while seeking new opportunities to create value for unitholders.

Units in SPH REIT closed at 98 cents on Thursday.

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