The manager of SPH REIT has reported distribution per unit (DPU) of 1.44 cents for the 2QFY2022 ended February, 16.1% higher than the DPU of 1.24 cents in the same period the year before.
On a q-o-q basis, the REIT’s DPU for the 2QFY2022 was also up by 16.1% from the DPU of 1.24 cents in the 1QFY2022.
This brings the REIT’s DPU to 2.68 cents for the 1HFY2022, up 9.8% y-o-y.
For the half-year period, the REIT’s gross revenue increased by 1.2% y-o-y to $141.6 million on the back of the lower rental waivers and reliefs granted to the REIT’s tenants.
Property operating expenses stood 3.6% higher y-o-y at $36.4 million, mainly due to the increase in electricity rates.
During the 1HFY2022, the REIT reported net property income (NPI) of $105.3 million, up 0.4% y-o-y.
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Net income for the half-year period increased by 2.6% y-o-y to $80.1 million.
The REIT also reported a total return after taxes and before distribution of $112.0 million, up 60.6% y-o-y mainly due to the fair value gain on investment properties of $32.1 million.
The REIT’s Singapore investment properties recorded a fair value gain of $32.3 million, while its investment properties in Australia registered a fair value loss of $0.2 million. The fair value loss has no impact on the income available for distribution.
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Distributable income to unitholders increased 8.4% y-o-y to $82.6 million.
As at end-February, the REIT reported a weighted average lease expiry (WALE) of 5.5 years by net lettable area (NLA) and a WALE of 2.8 years by gross rental income (GRI).
Its portfolio occupancy stood at 98.4% as at end-February.
Overall tenant sales for the REIT’s Singapore assets increased 2% y-o-y for the half-year period. In Australia, Westfield Marion saw tenant sales increase by 1% y-o-y for the 1HFY2022, while tenant sales for Figtree Grove fell 10% y-o-y.
The REIT has also, in a separate filing, released the valuations of its assets.
As at Feb 28, Paragon's valuation stood at $2.67 billion, according to independent valuer Savills. The Clementi Mall, another one of its assets, was valued at 597.5 million by Savills as well. The Rail Mall at Bukit Timah was valued at $62.2 million by Savills. Westfield Marion and Figtree Grove in Australia were valued at A$642.5 million ($651.5 million) and A$200 million respectively by CBRE.
“In line with our resilient performance, we are pleased to announce a DPU of 1.44 cents for 2Q FY2022. We thank all stakeholders for riding through this pandemic with us to emerge stronger. We will continue to work alongside the manager and provide guidance to deliver sustainable returns amid the gradual market recovery,” says Dr Leong Horn Kee, chairman of SPH REIT.
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Susan Leng, CEO of SPH REIT adds, “As travel restrictions around the world ease with quarantine free travel for the vaccinated, we expect visitor arrivals to Singapore and Australia to recover gradually.”
“However, a meaningful recovery to pre-Covid levels is likely to take some time,” she continues. “Although the economy is looking better, we are still sanguine about the pace of a full recovery. The impact of geopolitical tensions on oil prices and general market sentiment are likely to weigh on the Singapore economy. We are committed to maximising unitholder value and maintaining operational efficiency. Our proactive capital management strategy will put us in good stead for growth opportunities.”
Unitholders will receive their distributions on May 20.
Units in SPH REIT closed flat at 97 cents on April 1.
