SINGAPORE (July 2): The manager of SPH REIT declared on Wednesday evening a distribution per unit (DPU) of 0.5 cent for 3Q20 ended March, some 64.0% lower than the DPU of 1.39 cents in 3Q19.

The manager says this quarter’s DPU is a “modest increase” from last quarter’s 0.3 cent.

In a business update, SPH REIT says it has a portfolio occupancy rate of 98.8% and a weighted average lease expiry (WALE) of 4.1 years, despite the “challenging retail environment”.

Tenants’ businesses in the REIT’s portfolio were impacted by the circuit breaker measures from April to June. Phase two of the gradual reopening of the republic began on June 19, which allowed the resumption of food and beverage (F&B) and retail businesses.

Despite the reopening, the manager says the social distancing measures will have a “continued impact” on visitation as well as revenue.

In the same update, SPH REIT says it has maintained a strong balance sheet with no loan maturity due till June 2021. The REIT also has revolving credit facility lines of $225 million.

As at May 31, SPH REIT has a total portfolio of five assets in Singapore and Australia.

The Singapore portfolio has a 1% expiry of total net lettable assets (NLA), and the Australia portfolio has a 25% expiry of total NLA.

As at 10.49am, units in SPH REIT are changing hands 2 cents higher, or 2.3% up, at 88 cents.