[ad_1]
SUNTEC Real Estate Investment Trust (Suntec Reit) recorded a distribution per unit (DPU) of S$0.03042 in the six months ended Jun 30, 2024, marking a 12.5 per cent fall on year. DPU was S$0.03476 in the corresponding year-ago period.
Its manager on Thursday (Jul 25) evening attributed the fall mainly to the absence of distribution income from capital in H1 2024. Capital contributed S$11.5 million to distributable income in H1 2023.
Distributable income fell 11.8 per cent year on year to S$88.7 million, from S$100.5 million. Distributable income from operations alone fell 0.3 per cent in H1 2024, from S$89 million in H1 2023.
The manager said that operating performance from the Singapore office, retail and convention portfolio continued to strengthen. However, higher financing costs and vacancies at 55 Currie Street in Adelaide and The Minster Building in London weighed on the distributable income.
At S$226.9 million, gross revenue was up 1.2 per cent for the half year, from S$224.3 million previously. The increase came mainly from higher revenue from Suntec City, Suntec Singapore and 21 Harris Street in Sydney.
Suntec City revenue grew 3 per cent on year, on the back of higher retail revenue due to higher rent.
BT in your inbox
![Newsletter Img](https://www.businesstimes.com.sg/assets-web2/generic_newsletter-CGny2zps.png)
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Suntec Singapore’s revenue contribution of S$39.3 million in H1 2024 comprised S$28.2 million from its convention segment, and S$11.1 million from its retail segment.
Both figures were higher than in H1 2023. The growth in the convention segment came from higher revenue from meetings, incentives, conventions and exhibitions, as well as long-term licenses and advertising. In the retail segment, revenue growth was propelled by higher rent.
However, this was offset by lower revenue from Australian properties 177 Pacific Highway, 55 Currie Street and Olderfleet, 477 Collins Street, as well as The Minster Building in London.
Chong Kee Hiong, chief executive officer of the manager, added that The Minster Building is expected to achieve full occupancy in H2 2024. However, the leasing pipeline in Adelaide, where 55 Currie Street is located, remains weak under existing market conditions.
Net property income (NPI) fell 1.5 per cent on the year to S$151 million for the half-year period, from S$153.3 million.
A distribution of S$0.01511 per unit for the period Jan 1 to Mar 31 this year was paid out on May 30.
The remaining distribution of S$0.01531 per unit for the Apr 1 to Jun 30 period will be paid by the end of August.
The manager also noted that the Reit had divested S$31.5 million of strata units in Suntec City Office Towers at an average price of 27 per cent above book value. It will use the proceeds to pare down debts.
The counter closed down S$0.02 or 1.7 per cent at S$1.14 on Wednesday, before the announcement.
[ad_2]
Source link