Higher rental income has helped boost first-quarter turnover at SPH Reit, which owns two malls, Paragon in Orchard and The Clementi Mall in Clementi.
Both properties continued their track record of full occupancy amid headwinds in the retail environment, says SPH Reit.
Gross revenue for the quarter, to the end of November, grew 1.7 per cent to S$53.5 million (US$40.2 million), on the back of higher rental income, while net property income rose 1.9 per cent to $42.2 million.
“In keeping with our long-standing philosophy of partnering tenants toward mutual success, the rental review for tenants takes into consideration occupancy cost,” says the group. “This will better position them to ride on the sales recovery since June.”
However, there was a negative rental reversion of 10.6 per cent for Paragon’s new and renewed leases, which had mainly been committed 12 months earlier. This represented 4.4 per cent of the mall’s net lettable area.
There was only one tenancy change at Clementi Mall, and the overall portfolio rental reversion – based on the weighted average of all expiring leases – was a negative 10.6 per cent for the quarter, compared with a positive 1.2 per cent for new and renewed leases last year.
Meanwhile, SPH Reit Management CEO Susan Leng says the group has maintained its track record of 100 per cent committed occupancy and delivered steady performance. “The Singapore economic outlook has improved and retail sales have shown signs of recovery since June.