SPH REIT's net property income up 5.2% to $42.7m

Thanks to higher rental income for both Paragon and The Clementi Mall.

SPH REIT reported an improvement in gross revenue and net property income for the quarter ending in March, up 1.7% and 5.2%, respectively.

According to OCBC Investment Research, SPH REIT's net property income clocked in at $42.7m, underpinned by higher rental income for both Paragon and The Clementi Mall (TCM), coupled with lower utility expenses and a one-off provision for prior years’ property tax in 2Q16. Excluding this one-off effect, NPI still increased by 2.9%.

Meanwhile, distribution per unit (DPU) was flat at 1.40 Singapore cents, as $1.6m of taxable income available for distribution was retained during the quarter.

Here's more from OCBC Investment Research:

Both Paragon and TCM achieved 100% committed occupancy, whilst strong rental reversions of 4.3% and 8.3% were secured for leases expiring in 1HFY17, respectively.

The latter was all the more impressive considering that it was contributed by 23.1% of the property’s NLA. Overall portfolio rental uplift came in at 6.2%. Following the completion of TCM’s first renewal cycle in 2014, the mall had ~85.5% of its gross rental income (GRI) expiring in 2017 (leases are typically 3 years in tenure).

Management had renewed 74.1% of TCM’s GRI, as at end-2QFY17. From our understanding, further progress has been made, with the remaining leases now successfully renewed.

We believe this reflects management’s solid execution capabilities and TCM’s strong positioning. TCM achieved an estimated retention rate of 90% by NLA.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia