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Gross revenue fell 2.3 percent and net property income also dropped by 7.2 percent.
Suntec Real Estate Investment Trust (REIT) saw its distributable income and distribution per unit (DPU) for the second quarter of 2019 decline by 1.3 percent and 4.6 percent to $65.155 million and 2.361 Singapore cents, respectively.
Gross revenue dropped 2.3 percent to $88.396 million in Q2 2019, mainly due to Suntec Convention’s lower revenue, which was partially offset by a hike in office and retail revenue from Suntec City.
Net property income also fell 7.2 percent to $56.4 million in Q2 2019 from $60.7 million over the same period last year.
For the first half of 2019, gross revenue and net property income declined 1.7 percent and 7.4 percent year-on-year to $178 million and $114.6 million, respectively.
Distributable income slipped 0.2 percent to $130.5 million, while DPU dropped 2.3 percent to 4.795 Singapore cents.
As at 30 June 2019, the overall committed occupancy for Suntec REIT’s Singapore office portfolio stood at 98.9 percent and is expected to perform well due to the positive rental reversions in earlier quarters.
Upgrading works for Suntec City Office Towers are expected to be completed in 2021.
For projects under development within the city-state, 9 Penang Road is on track to complete construction works by the fourth quarter of 2019. The office component was fully pre-leased to UBS, while leasing for 15,000 sq ft of retail NLA is still on-going.
Meanwhile, the overall committed occupancy for Suntec REIT’s office portfolio in Australia improved to 99.8 percent as at 30 June 2019, on the back of higher occupancy at Southgate Complex.
“Underpinned by the strong performance of the Sydney and Melbourne office markets and an improving Adelaide office market, the occupancy and rental levels for the Australian assets are expected to remain high for Suntec REIT’s Australia office portfolio,” said the REIT’s manager.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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