Paragon REIT NPI up 0.1% YoY to $106.1m in H1

However, its DPU declined by 15.7% to 2.4 cents.

Paragon Reit posted a slight increase of 0.1% year-on-year (YoY) in net property income to reach $106.1m as tourist arrivals and retail sales in Australia continue to improve.

In a statement, Paragon REIT’s Manager said the company’s revenue also recorded an uptick of 0.6% to reach $143m.

Due to resilient retail spending, Paragon REIT maintain a near full occupancy across its portfolio at 97.8%.

The portfolio rental reversion rate also turned positive from -4.1% in 2022 to 6.9% due to the easing of restrictions.

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“Looking ahead, the resilient domestic demand and the gradual increase in international arrivals are expected to contribute to improved performance overall. Through our portfolio of quality assets and proactive asset management, we are well-positioned to capitalise on the retail recovery,” said Paragon REIT Chairman Leon Horn Kee. 

On the other hand, its distribution per unit was down 15.7% YoY to 2.42 cents driven by the increase in interest cost which was up to $25.5m from $14.7m.