Suntec – BT

Suntec Reit Q2 DPU falls 15% to 2.53 cents

SUNTEC Reit’s second-quarter distribution income to June 30 slid 3.7 per cent to $45.9 million, from $47.7 million a year back, while distribution per unit (DPU) fell 15.1 per cent to 2.528 cents.

Gross revenue for the quarter slipped 3.3 per cent to $62.4 million, from $64.5 million a year earlier, due to lower office and retail revenue.

The Q2 results brought the Reit’s first-half distribution income to $91.3 million, down 2.9 per cent year on year, and its gross revenue to $124.8 million, down 3.5 per cent from $129.4 million.

First-half DPU was 5.041 cents, a 14.5 per cent drop year on year.

Gross office revenue in Q2 was $29.6 million, 2.3 per cent lower year on year, mainly due to lower rental income from Suntec City offices, which contributed $27.4 million.

The committed occupancy rate for Suntec City office improved to 96.6 per cent. Park Mall offices and One Raffles Quay were fully occupied at June 30, strengthening the Reit’s overall committed occupancy for the office portfolio to 97.6 per cent.

For its retail portfolio, gross revenue fell 4.1 per cent year on year to $32.8 million. Suntec City Mall contributed $26.6 million, while Park Mall and Chijmes contributed $6.2 million.

The overall occupancy rate for the retail portfolio was 98.7 per cent at June 30.

Property operating expenses eased 4.8 per cent in Q2 to $15 million, due to lower property tax and other expenses.

Net financing cost for the quarter was $16.3 million, a decline of $2.4 million or 12.9 per cent year on year. This was mainly due to a net loss of $3.8 million arising largely from the re-measurement of interest-rate swap transactions and convertible bonds.

The Reit’s overall financing cost in Q2 averaged 3.68 per cent and its gearing ratio was 33.6 per cent at June 30.

Suntec Reit’s counter closed one cent up at $1.44 yesterday.