Suntec Real Estate Investment Trust (Suntec REIT) has reported a 6.2 per cent on-year decline in distribution per unit at 2.326 cents for the fourth quarter of 2012.
In a statement, ARA Trust Management (Suntec) Limited, manager of Suntec REIT, said its income available for distribution fell 5.3 per cent on-year to S$52.39 million in the fourth quarter.
It added that fourth-quarter gross revenue and net property income also came in lower than the previous year.
ARA Trust Management attributes the decline to the closure of Suntec Singapore, and Suntec City Mall (Phase 1) for the asset enhancement works and the divestment of CHIJMES.
For the fourth quarter of 2012, Suntec REIT recorded a gross revenue of S$55 million, down 31.3 per cent from the previous year.
Net property income for the quarter was S$30.55 million, a fall of 41.3 per cent on-year.
For the full year, the income available for distribution for Suntec REIT was down 3.5 per cent to S$213 million, compared to FY2011.
Meanwhile, its distribution per unit for FY2012 was 9.490 cents, a 4.5 per cent drop from the previous year.
Looking ahead, ARA Trust Management said the works on Phase 1 of the asset enhancement initiative (AEI) for Suntec City is on track and due to be completed by the second quarter of 2013.
Yeo See Kiat, chief executive officer of ARA Trust Management (Suntec) Limited, said: “To date, we have achieved a pre-commitment of about 83 per cent in respect of Suntec REIT’s Phase 1 NLA (net lettable area).
“We are also about to embark on Phase 2 of the AEI in March 2013 and we are pleased to report that 37 per cent of Phase 2 NLA has been pre-committed even before we commence works.
“Based on our leasing progress to date, our projected rental enhancement and return on investment of 10.1 per cent are on track.”
Mr Yeo also shared that Golden Village will be setting up a 60,000 square feet, 11-screen multiplex in Phase 2 of the new Suntec City, which will include a three-screen Gold Class theatre.
Other brands that have signed up to lease space under Phase 1 of the new Suntec City include Lush, Smile Inc, Smoothie King, Popeyes, HABA and Yankee Candle.
Source : Channel NewsAsia – 22 Jan 2013