SINGAPORE (Apr 25): The manager of Suntec REIT announced a distribution per unit (DPU) of 2.433 cents for 1Q18, 0.3% higher than 1Q17 DPU of 2.425 cents.

Distributable income came in at $64.8 million for 1Q18 ended March which was 4.8% higher compared to 1Q17.

In 1Q18, Suntec REIT’s gross revenue of $90.7 million was 2.6% higher year-on-year. This was mainly due to higher contribution from Suntec Singapore and Suntec City mall but partially offset by lower contribution from Suntec City office mainly due to transitory downtime from replacement leases commencing progressively from March.

The net property income of $63.0 million was 1.9% higher year-on-year which was similarly due to higher contributions from Suntec Singapore and Suntec City mall, partially offset by lower contribution from Suntec City office.

As at March 31, the Singapore office portfolio achieved an overall committed occupancy of 99.5%. The committed occupancy for Suntec City Office was 99.1% while both One Raffles Quay and Marina Bay Financial Centre Properties enjoyed 100% committed occupancies.

For the Singapore retail portfolio, the overall committed occupancy as at March 31 was 98.6%. The committed occupancy for Suntec City Mall was 98.6%, while the committed occupancy for Marina Bay Link Mall was 98.9%.

In Australia, the committed occupancy for 177 Pacific Highway maintained at 100%. For Southgate Complex, the committed occupancies for the office towers and retail podium were 92.5% and 91.0% respectively.

As at March 31, Suntec REIT’s debt-to-asset ratio stood at 35.2% while all-in financing cost was 2.73% per annum for 1Q18.

For projects under development, 9 Penang Road and 477 Collins Street, construction works are in progress and are scheduled to complete by end 2019 and mid 2020 respectively.

On 477 Collins Street, Chan Kong Leong, CEO of ARA Trust Management (Suntec), says, “We are pleased to report that anchor tenant Deloitte, has exercised its expansion right for additional 2 levels, more than 2 years ahead of expected practical completion in 2020. The pre-committed occupancy for 477 Collins Street is now 45.8% with an additional approximate 9% of NLA with Heads of Agreement signed.”

Units in Suntec REIT closed 3 cents lower at $1.90 on Tuesday.