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SPH REIT reports DPU of 5.52 cents for 12MFY2022

The Edge Singapore
The Edge Singapore • 2 min read
SPH REIT reports DPU of 5.52 cents for 12MFY2022
The Paragon mall, SPH REIT's key asset. Photo: Samuel Isaac Chua
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SPH REIT has announced a distribution per unit of 5.52 cents for 12 months FY2022 ended Aug, up 2.2% y-o-y from 5.40 cents. Net property income in the same period was up 1.8% y-o-y to $160.67 million while revenue was up 1.7% y-o-y to $281.9 million.

The company had recently announced it is changing its financial year end from Aug 31, which was in line with its former parent entity Singapore Press Holdings.

With the sale of the property assets of SPH to Cuscaden Peak, SPH REIT’s new financial year will end in December. The REIT will be reporting earnings for 16 months FY2022 ending Dec 2022 this coming February.

SPH REIT has maintained “strong” portfolio occupancy of 97.5%, a reflection of its

proactive leasing efforts to renew or sign leases in advance mitigating vacancies.

While it enjoyed tenant retention rate of 82.9%, rental reversion dipped 2.8% for 12MFY2022, versus a decline of 8.4% in FY2021.

See also: Cordlife posts net loss of $11.57 mil for 1QFY2024 due to refund fulfilment

The portfolio weighted average lease expiry was 5.3 years by net lettable area and 3 years by gross rental income.

SPH REIT’s key asset is the Paragon mall, which enjoyed a 25.6% improvement in tenant sales for 12MFY2022, in line with a pick up in footfall in the Orchard Road area.

As at Aug 31, SPH REIT’s portfolio is valued at $3,338.7 million, up 1.3% y-o-y from $3,296.2 million. Net asset value per unit as at 31 August 2022 remained stable at 92 cents.

See also: Changi Airport Group reports FY2024 earnings of $431 mil, 13.1 times higher y-o-y

“The portfolio has shown improved performance as Singapore and Australia move towards normalisation. It is also encouraging that international arrivals are gradually picking up,” says SPH REIT’s chairman Leong Horn Kee.

“As our economies recover from the pandemic, our assets are well positioned to manage the challenges ahead,” he adds.

Susan Leng, CEO of SPH REIT says the return to normalcy is evident in Singapore and Australia, resulting in better performance in footfall as well as tenant sales, particularly at the REIT’s Singapore assets.

“The close partnership with our various stakeholders has seen us through the challenging pandemic period,” she adds.

SPH REIT closed at 89 cents on Oct 7, up 1.14% for the day and down 11% year to date.

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