Suntec REIT NPI down 1.4% to $240.98m in 2018

DPU dipped 0.02% to $0.999.

Suntec REIT saw its net property income decrease 1.4% YoY to $240.98m in 2018 from $244.46m in 2017, an announcement revealed. Despite this, the REIT’s revenue grew 2.6% YoY to $363.50m.

In their financial report, Suntec REIT also revealed that their distributable income for the whole of 2018 rose 1.4% YoY to $266.81m from $263.02m in 2017. Its distribution per unit (DPU) however dipped by 0.02% to $0.999 from $0.1000

In Q4, Suntec REIT’s NPI rose 2.3% YoY to $60.73m from $59.36m for the same period in 2017. Revenue in the quarter increased 7% YoY to $93.45m.

The REIT also noted that its distributable income in Q4 dipped 0.03% YoY to $69.46m whilst distribution per unit (DPU) slipped 0.5% to $0.259. Suntec REIT’s Singapore office portfolio witnessed an overall committed occupancy rate of 98.5% as of end 2018 and is expected to improve further amidst supply coming on-stream.

Also read: Retail REIT recovery drags on amidst sluggish sales and traffic

According to ARA Trust Management CEO Chong Kee Hiong, the higher distributable income of the REIT for 2018 comes from the good performance of Suntec City Mall amidst improved occupancy, higher footfall and tenants’ sales.

“The acquisition of the additional 25% interest in Southgate Complex also contributed to the stronger performance,” Chong commented. “This was however offset by higher financing costs, transitory downtime for the Singapore office leases and the weakened Australian dollar.”

For the Singapore retail portfolio, the overall committed occupancy as at 31 December 2018 stood at 99.6%.

“In 2018, Suntec City’s footfall increased by 4.8% YoY to 47 million and tenants’ sales registered a 5.2% growth YoY,” Chong said. “We expect Suntec City Mall to continue to perform well in 2019 as we curate exciting offerings to strengthen Suntec City’s ecosystem and deliver greater value to our shoppers.”

The REIT also raised $1.2b in financing for the whole of 2018.