Suntec Real Estate Investment Trust (REIT) on Thursday said it will distribute 2.53 cents per unit in the second quarter.
This is down 15 per cent from the DPU of 2.98 cents in the year ago period.
Suntec REIT said its distributable income came to S$45.93 million for the quarter.
This is a slight dip of about 4 per cent from S$47.77 million a year ago.
The trust said its annualised yield stands at 7.7 per cent, down from 9 per cent in the same period last year.
Gross revenue fell 3.3 per cent to S$62.39 million due to lower revenues from its office and retail properties.
Net property income amounted to S$47.42 million, down 2.8 per cent on year.
Despite the declines in the REIT’s financial performance, Chief Executive of ARA Management (Suntec), Yeo See Kiat, said the increasingly positive economic outlook and sentiment is an encouraging sign.
He said this will support a steady recovery in the office and retail property sectors moving forward.
As at June 30, the committed occupancy of Suntec City Mall strengthened to 98.3 per cent in the second quarter, while Park Mall and Chijmes maintained full occupancy.
As such, the overall committed occupancy for the retail portfolio stood at 98.7 per cent.
Mr Yeo said less than 4 per cent of Suntec REIT’s entire office portfolio of Suntec City, Park Mall and one-third of One Raffles Quay expires in 2010.
Occupancy rates for all three office properties stand at 97.6 per cent – higher than the industry average of 93.3 per cent.
Source : Channel NewsAsia – 22 Jul 2010