Lower revenue at Paragon mall hit net property income for SPH Reit Management for its second quarter to the end of February.
The return of S$42.2 million (US$32 million) dipped 1.1 per cent from the same period last year. This reflected a rental reversion of -7.1 per cent for new and renewed leases at Paragon in the first half, mainly because of negotiations during the retail sales downturn since 2014. The decline was more moderated in the second quarter, says SPH.
There were only three changes in tenancies at Clementi Mall, representing 1.4 per cent of the mall’s net lettable area.
However, tenant sales have grown in the malls in tandem with the recovery in retail sales since June. Both properties also continued their track record of full occupancy.
“In keeping with our philosophy of treating tenants as business partners, we work closely with them to ride through both cyclical and structural challenges in the retail environment,” says SPH Reit Management CEO Susan Leng.