Paragon REIT NPI up 3.3% YoY to $279.9m

It was supported by the recovery of the retail industry.

Paragon REIT has posted a 3.3% year-on-year growth in net property income to $279.9m in the 16 months that ended on 31 December 2022, on the back of retail resurgence and retail portfolio.

In a statement, Paragon REIT said its performance was supported by the retail recovery in Singapore, with a portfolio in the country increasing 24% YoY both in tenant sales and footfall.

Overall, the company posted a strong portfolio occupancy rate of 98.5%, with a tenant retention ratio of 80%. Its portfolio negative rental version rate declined from -8.4% to -4.1% because of the recovering retail sentiments.

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Its tenant sales also reached near pre-COVID levels.

Paragon REIT’s gross revenue inched up by 1.8% YoY to $376.4m, whilst its distribution per unit for the four months ending on 31 December 2022 was at 1.72 cents or an annualised yield of 5.73%. The distribution is expected to be paid on 28 March 2023.

The reporting period covers 16 months from 1 September 2021 to 31 December 2022 after the company moved its financial year-end from 31 August 2022 to 31 December 2022.