The manager of Paragon REIT has announced a distribution per unit (DPU) of 2.32 cents for its 1HFY2024 ended June, down 4.1% compared to the previous corresponding period.
This is due to management fees being paid fully in cash to reduce the dilution of unitholders’ returns, the manager says in a filing.
Gross revenue increased 3% y-o-y to $147.4 million for 1HFY2024, while net property income was up 4.5% y-o-y to $110.8 million.
The REIT’s occupancy as at June 30 is maintained at 98% across the portfolio. Rental reversion improved to 19.1% for 1HFY2024 compared to 6.9% for 1HFY2023.
The portfolio has a weighted average lease expiry (WALE) of 4.9 years by net lettable area and 2.9 years by gross rental income.
Total borrowings stood at $1.3 billion, translating to a gearing of approximately 29% as at June 30. Fixed debt remained at 85% to mitigate against the impact of rising interest rates, while debt maturity profile stood at a weighted average term to maturity of 1.6 years. Average cost of debt was 4.6% for 1H FY2024.
See also: IHH Healthcare’s 3QFY2024 patmi remains flat at RM534 mil
“With tourist arrivals expected to continue its recovery for the rest of 2024, we remain cautiously optimistic that we will continue delivering sustainable long-term value for all our unitholders,” says the REIT chairman Dr Leong Horn Kee.
Units in Paragon REIT closed 1.5 cents lower on Aug 5 or 1.7% down at 85.5 cents.
