SINGAPORE (July 10): The manager of SPH REIT has declared distribution per unit (DPU) of 1.37 cents for the 3Q ended May, unchanged from a year ago.

Distribution for 3Q18 included income available for distribution retained earlier in the year.

SPH REIT saw its gross revenue slip 2.9% to $51.8 million in 3Q, compared to $53.3 million a year ago.

This was mainly due to lower revenue at Paragon, which has recorded a rental reversion of -6.2% for new and renewed leases cumulatively in year-to-date 2018.

Property operating expenses for 3Q18 were $11.2 million, increasing marginally by 0.6%  mainly due to higher utility rate contracted.

Consequently, net property income (NPI) fall 3.8% to $40.6 million in 3Q, down from $42.2 million a year ago.

Income available for distribution for 3Q18 was $35.1 million, some 1.7% lower than a year ago.

As at end May, cash and cash equivalents stood at $51.4 million.

“SPH REIT has delivered steady distribution and tenant sales have continued to register growth,” says Susan Leng, CEO of the manager. “We remain focused to seek opportunities to continually enhance our properties and create long-term value for our unitholders.”

“In line with our strategy of acquiring yield-accretive retail properties that provide sustainable returns to unitholders, we have completed the acquisition of The Rail Mall, a unique cluster of shop units along Upper Bukit Timah Road, with opportunity to further strengthen its current F&B mix and create a differentiated positioning for the asset,” she adds.

Units of SPH REIT closed half a cent higher at $1.00 on Tuesday.