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SPH REIT reports 2Q21 DPU of 1.24 cents; sees 45.2% y-o-y jump in 1H21 DPU of 2.44 cents

Felicia Tan
Felicia Tan3/29/2021 08:30 PM GMT+08  • 3 min read
SPH REIT reports 2Q21 DPU of 1.24 cents; sees 45.2% y-o-y jump in 1H21 DPU of 2.44 cents
Units in SPH REIT closed 1 cent higher or 1.2% up at 85.5 cents on March 29.
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SPH REIT has reported distribution per unit (DPU) of 1.24 cents for the 2QFY2021 ended February, almost four times the DPU of 0.3 cent reported in 2QFY2020.

This brings the REIT’s 1HFY2021 DPU to 2.44 cents, 45.2% higher y-o-y and 3.3% higher q-o-q.

Gross revenue for the half-year grew 4.9% y-o-y to $140.0 million mainly attributable to contribution of $26.4 million from the 50% interest in Westfield Marion Shopping Centre in Australia.

This marks Westfield Marion’s first full half-year contribution since its acquisition on Dec 6, 2019.

Gross revenue for the REIT’s Singapore assets fell 6.7% y-o-y due to the Covid-19 rental relief granted to eligible tenants. The REIT’s Australian tenants also received Covid-19 relief grants where eligible.

SEE:Syfe drops SPH REIT from REIT+ portfolio, adds Lendlease and AIMS APAC

Property operating expenses for the 1HFY2021 increased 17.4% y-o-y to $35.1 million mainly due to the acquisition of Westfield Marion.

Net property income (NPI) for the period increased 1.3% y-o-y to $104.9 million.

Net income for the 1HFY2021 increased 2.6% y-o-y to $78.1 million.

The trust recognized a fair value loss of $8.4 million on its investment properties. The loss has no impact on the income available for distribution.

Distribution to unitholders surged 53.5% y-o-y to $67.8 million while distributable income for the 1HFY2021 stood 1.5% y-o-y lower at $76.2 million.

The period’s DPU represents an annualised distribution yield of 5.93% based on the unit closing price of 83 cents as at Feb 28.

As at end-February, cash and cash equivalents stood at $127.5 million, higher than the $67.6 million a year ago.

1HFY2021 earnings per unit (EPU) came in at 2.27 cents, slightly lower than 2.47 cents in the year before.

The REIT’s total occupancy rate stood at 98.0% as at end-February, with a weighted average lease expiry (WALE) of 5.4 years by net lettable area (NLA).

Its Singapore malls registered occupancy rates of 97.1%, 100% and 100% for Paragon, The Clementi Mall and The Rail Mall respectively.

Westfield Marion and Figtree Grove in Australia registered occupancy rates of 97.9% and 99.2% during the period.

According to the manager, tenant sales in its Singapore assets “showed signs of recovery” during the phased lifting of safe distancing measures.

Covid-19 cases are low in South Australia and Wollongong, where the REIT’s malls are located at.

It adds that its near-term focus is to maintain a healthy occupancy and sustainable rental income while carefully managing cost.

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“Against the backdrop of a gradual recovery in tenants’ sales across our assets, we are pleased to announce a DPU of 1.24 cents to unitholders for 2QFY2021. We will continue to engage with our stakeholders to overcome the challenges ahead so as to position SPH REIT to be stronger for the future,” says Dr Leong Horn Kee, chairman of SPH REIT.

“Notwithstanding the rollout of vaccinations, both in Singapore and globally, which will probably allow some relaxation for international travel requirements, however full recovery for leisure travel will still take some time. We will continue to engage with our tenants and monitor the impact of Covid-19 on their businesses and render targeted assistance,” adds Susan Leng, CEO of SPH REIT.

Units in SPH REIT closed 1 cent higher or 1.2% up at 85.5 cents on March 29.

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