SPH REIT’s net income inches up by 1.8% to $40m

On back of its malls’ booming occupancy.

However weak the retail environment in the city-state is, SPH REIT still found a way to muster a 1.9% increase in its gross revenue, driven by its Paragon mall.

According to OCBC, SPH REIT’s gross revenue rose by 2% to $157.4m while its DPU inched up by 0.2% to 4.09 S cents.

“These formed 74.5% and 74.3% of our FY16 forecasts, respectively. Both Paragon and TCM achieved full occupancy, as at 30 Jun 2016,” OCBC noted.

Additionally, rental reversions came in at 4.9% for Paragon and 4.5% for TCM for 9MFY16, and this culminated in overall portfolio rental reversions of 4.9%, OCBC said.

“On the flipside, visitor traffic to SPH REIT’s malls declined 2.2% on a YoY basis for 9MFY16 given the soft retail environment,” OCBC said.