SPH REIT beats forecast with $46.5m distributable income

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SPH REIT Management Pte. Ltd. (SPH RM), the Manager of SPH REIT, announced that SPH REIT’s income available for distribution to unitholders was $46.5m for the period from the listing date of 24 July 2013 to 30 November 2013.

This translates to a distribution per unit (DPU) of 1.86 cents, an increase of 2.2% against IPO forecast. The first distribution will be paid to unitholders on 14 February 2014.

Management said SPH REIT posted steady and resilient operational performance during the period. Both Paragon and The Clementi Mall are fully leased. Paragon continues to achieve consistently robust performance with rental reversions of 12.4% for the renewals and new leases during the period from 24 July 2013 to 30 November 2013.

Meanwhile, leasing activities at The Clementi Mall have progressed well. Most of the leases expiring in 2014 have been renewed or re-let and more than 90% of the tenants (by net lettable area) have committed for a second lease term, said SPH REIT. Shopper traffic has grown by 9% for the period from January 2013 to November 2013 as compared to the same period in 2012.

The Manager has put in place a well-staggered debt profile with no refinancing requirement till 2016 and weighted average term to maturity of 4.8 years. SPH REIT registered gearing level of 26.7% and average cost of debt of 2.33% as at 30 November 2013.

Ms Susan Leng, CEO of SPH REIT Management Pte. Ltd., said, “We are pleased that SPH REIT’s inaugural distribution has exceeded IPO forecast. Both malls have maintained their track record of 100% committed occupancy, with strong rental reversion from Paragon and steady performance from The Clementi Mall. We will continue to proactively manage our properties to deliver sustainable returns while seeking new opportunities to create value for unitholders.”