Suntec Real Estate Investment Trust’s (Suntec REIT) distributable income increased by 7.2 percent to S$60 million in Q1 2016 on an annual basis, while distribution per unit (DPU) climbed by 6.3 percent to 2.371 cents from 2.230 cents previously.
“This was mainly attributable to the higher revenue and net property income (NPI) from the completion of Suntec City mall Phase 3 in and Suntec City Office.” Another factor was the capital distribution of S$4 million from the sale of Park Mall, said Yeo See Kiat, CEO of its manager, ARA Trust Management (Suntec) Ltd.
According to Credit Suisse, while the REIT’s DPU was in line with its expectations, if the capital distribution is excluded, it would have declined by 0.8 percent year-on-year to 2.213 cents.
The growth in NPI due to the opening of Suntec City Mall’s third phase in June 2015 was also offset by the loss of income from the sale of a 70 percent stake in Park Mall, lower contribution from properties in Marina Bay Financial Centre (MBCF) and higher financing costs due to the redemption of corporate bonds (CBs), said the bank.
As of March 2016, the occupancy rate at Suntec City mall improved by 0.7 percentage point to 98.7 percent, whereas Suntec City Office Towers reported a figure of 97.5 percent. For its MBFC properties and One Raffles Quay, the occupancy rates w unchanged at 99.2 percent and 99.8 percent respectively, added Credit Suisse.
Meanwhile, Suntec REIT’s manager announced that the trust’s Grade-A commercial building in North Sydney is slated to be finished soon.
“The construction of 177 Pacific Highway in North Sydney is on-track and we are on schedule to complete by the second half of 2016,” Yeo added.