Suntec REIT's net property income rose 8.9% to $244.5m in 2017

It was boosted by higher revenue, which increased to $354.2m.

Suntec Real Estate Investment Trust (REIT) reported that its NPI rose by 8.9% YoY, increasing from $224.6m to $244.5m in 2017.

Suntec REIT’s gross revenue also increased by 7.8% YoY, from $328.6m to $354.2m in 2017.

According to Suntec REIT, this was due to a 19.1% increase in office revenue amounting to $175.7m, which was partially offset by a 2.3% decrease to $78.3m.

Further, 177 Pacific Highway highly contributed to the increase in office revenue, as well as to the overall increase of 5.5% YoY to $109.7m in property expenses.

The total income contribution from joint ventures for FY17 was $89.7m, a marginal decline of 0.1%. This was mainly due to lower contribution from MBFC Properties which was offset by the full year contribution from Southgate Complex.

Net financing costs for FY17 was $75.6 million, an increase of $20.9m or 38.2% higher. This was mainly due to the cessation of the coupon earned on progress payments following the completion of 177 Pacific Highway and higher interest rates. The all-in financing cost for Suntec REIT was 2.50% for FY17.

Total distributable income for FY17 of $263m, was $9.3m or 3.7% higher. The DPU for FY17 was 10.005 cents per unit, which was in line with FY16. This includes a capital distribution of $29m or 1.098 cents per unit.