Suntec REIT reports Q1 DPU of 2.45 cents

Suntec Real Estate Investment Trust (Suntec REIT) has reported a first quarter distribution per unit (DPU) of 2.45 Singapore cents.

This is 2.7 per cent higher from its DPU of 2.39 cents declared a year ago.

The trust said its annualised distribution yield stood at 7.8 per cent, compared to 7.6 per cent in the same period last year.

Suntec REIT’s gross revenue rose 20.1 per cent to S$73.3 million year-on-year.

In its filing to the Singapore Exchange, the REIT manager said this is mainly due to the consolidation of revenue from Suntec Singapore.

Meanwhile, net property income rose five per cent to S$49 million from the previous year.

Although the office market remained subdued in the first quarter of 2012, the trust said its overall committed occupancy for the office portfolio enjoyed a strong occupancy of 99.4 per cent as at 31 March 2012.

Committed occupancy for the retail portfolio stood at 97.3 per cent as at 31 March 2012.

The trust is starting asset enhancement works at Suntec City, which is expected to complete by the second quarter of 2013.

Several established brands have signed up for retail space in the newly refurbished Suntec City Mall, including Swedish clothing giant H&M, which will take up 20,000 square feet.

Another major international fashion retailer has also committed approximately 22,000 sq ft with the mall.

In the coming year, the trust said it will focus on the smooth execution of its refurbishment works for Suntec City Mall as well as maintain a high occupancy level for the rest of the mall.

Mr Yeo See Kiat, chief executive officer, ARA Trust Management (Suntec), said: “For our office portfolio, with the strong occupancy level and renewal achieved to date, barring any unforeseen circumstances, we are confident that our office portfolio would outperform that of the preceding year.”

Source : Channel NewsAsia – 24 Apr 2012

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