Suntec REIT posts 0.5% drop in 4Q DPU to 2.59 cents on higher revenue
SINGAPORE (Jan 23): ARA Trust Management, the manager to Suntec REIT, announced DPU for 4Q18 declined by 0.5% to 2.59 cents, compared to 2.60 cents in 4Q17.
This brings DPU for FY18 to 9.988 cents, 0.2% lower than 10.005 cents in FY17.
Distributable income for the quarter was 0.3% higher at $69.5 million from $69.3 million a year ago.
Gross revenue increased by 7.0% to $93.5 million, compared to $87.3 million in the previous year, mainly due to higher revenue contribution from Suntec Singapore, 177 Pacific Highway and Suntec City. The increase in retail revenue of $1.4 million due to positive rental reversion was partially mitigated by $0.3 million decline in office revenue.
Suntec Singapore’s revenue contribution for the quarter of $23.8 million comprises $18.8 million from convention and $5.0 million from retail, an increase of 17.8% and 4.4% respectively compared to 4Q17.
Property expenses saw a 17.0% y-o-y increase to $32.7 million, bringing net property income for 4Q17 to $60.7 million, 2.3% higher than $59.4 million last year.
Share of profit of joint ventures jumped 77.2% y-o-y to $44.3 million.
Finance expenses increased 28.4% y-o-y to $28.2 million.
The overall committed occupancy for the office and retail portfolios stood at 98.7% and 99.1% respectively as at Dec 31, 2018.
Chong Kee Hiong, CEO of the manager, says, “We have executed a successful multipronged strategy to reposition Suntec City Mall. In 2018, Suntec City’s footfall increased by 4.8% year-on-year to 47 million and tenants’ sales registered a 5.2% growth year-on-year. We expect Suntec City Mall to continue to perform well in 2019 as we curate exciting offerings to strengthen Suntec City’s ecosystem and deliver greater value to our shoppers.”
“In view of the rising interest rate environment, we will continue our prudent capital management strategy and proactively manage the refinancing of the loan due in 2019,” adds Chong.
Units in Suntec REIT last traded 1 cent lower at $1.86.
