SINGAPORE (Oct 27): The manager of Suntec Real Estate Investment Trust (Suntec REIT) has announced distribution per unit (DPU) of 2.483 cents for the 3Q ended September, 2.1% lower compared to DPU of 2.535 cents a year ago.
This was mainly due to an enlarged units base, which included approximately 95.7 million new units issued on May 29, 2017.
Distributable income rose 2.4% to $65.9 million in 3Q17, from $64.3 million a year ago.
Gross revenue grew 10.6% to $91.1 million, from $82.4 million a year ago.
This was mainly due to the rental contribution of 177 Pacific Highway which received practical completion in August 2016 as well as higher contribution from Suntec Singapore.
Net property income rose 11.6% to $63.9 million, from $57.2 million a year ago.
Income contribution from joint venture fell 8.2% to $22.3 million, from $24.2 million a year ago.
This was due to one-off gains in 3Q16 for ORQ and MBFC Properties, partially offset by contribution from Southgate Complex.
As at end September, Suntec REIT’s Singapore office portfolio achieved an overall committed occupancy of 99.0%, while its Singapore retail portfolio registered overall committed occupancy of 99.1%.
In Australia, the committed occupancies for 177 Pacific Highway and Southgate Complex (Office) were 100% and 89.6%, respectively, while the committed occupancy for Southgate Complex (Retail) was 87.8%.
As at end September, cash and cash equivalents stood at $169.1 million.
“Suntec REIT continues to reap the benefits from the diversification strategy into Australia. While the Singapore assets continued to deliver steady income, the properties in Australia, 177 Pacific Highway and Southgate Complex contributed to our robust performance this quarter,” say Chan Kong Leong, chief executive officer of the manager.
Looking ahead, the manager says it will continue its proactive asset management to maintain its high occupancy level for its Singapore office portfolio notwithstanding the secondary space in the market.
Meanwhile, in Australia, occupancy and rents are expected to strengthen given the strong occupier demand coupled with limited new supply.
Units of Suntec REIT closed flat at $1.93 on Thursday.