SPH Reit income soars, driven by fast-paced Australian mall recovery

Singapore assets gross revenue fell due to the pandemic rental relief, but other parts of the portfolio helped to keep spirits high.

SPH Reit’s net income grew by 2.6% to $78.05m in the first half of its 2021 financial year, compared to $76.07m in the same period last year. Meanwhile, gross revenue for the six months ended 28 February grew by 4.9% YoY to $140m.

The increase was attributed to Westfield Marion Shopping Centre’s first full H1 contribution to the portfolio. The REIT acquired a 50% interest in the South Australian shopping mall (the largest in Adelaide) in December, 2019, so it was only able to contribute three months of earnings during the same period in the 2020 financial year.

SPH Reit reported a distribution per unit (DPU) of $1.24 cents for Q2 FY 2021, an increase of 3.3% compared to the last quarter. First half DPU is at $2.44 cents.

Meanwhile, gross revenue for the group’s assets in Singapore fell by 6.7% due to COVID-19 rental relief granted to eligible tenants.

“Tenant sales at the Singapore assets showed signs of recovery following the phased lifting of safe distancing measures, driven by growing shoppers’ confidence in physical visits to the malls, and the festive season shopping. Covid-19 incidents are low in South Australia and Wollongong where SPHREIT assets are located. Such incidents were also well managed which boosted shoppers confidence. Tenant sales at both assets were resilient and tracked closely to prior years,” SPH REIT Management Pte. Ltd, the manager of SPH Reit said in a statement.