YTL Starhill Global REIT (SGReit) said its second quarter distribution per unit rose by 2.3 per cent to 1.32 cents.
Revenue for the three months ended Dec 31 grew by 13.8 per cent to S$55.6 million while net property income (NPI) rose by 10.4 per cent to S$43.7 million.
The growth in revenue and NPI was mainly driven by the contribution from Myer Centre Adelaide which was acquired in May 2015 and the resilience of the Singapore portfolio performance.
This was partially offset by lower contributions from China and net foreign currency movements. Income distributable to unitholders was S$28.8 million, up 3.7 per cent. On an annualised basis, the second quarter distribution represents a yield of 6.94 per cent, based on the unit closing price of 75.5 cents as at Dec 31. Unitholders can expect to receive their distribution on Feb 29.
YTL Starhill Global chairman Francis Yeoh said the Reit delivered another strong earnings growth in the second quarter, underpinned by the resilience of the Singapore portfolio and contribution from its latest acquisition.
“While Asia’s economic growth is expected to ease, we are confident our prime assets in key Asia-Pacific cities will remain resilient in an evolving retail landscape,” he noted.
SGReit’s Singapore portfolio, comprising interests in Wisma Atria and Ngee Ann City on Orchard Road, contributed 60.8 per cent of total revenue or S$33.8 million.
Its NPI increased by 2.7 per cent to S$27.3 million, led by positive rental reversions achieved in previous quarters. Singapore retail portfolio recorded flat rental reversions for leases committed during the quarter.
Wisma Atria retail revenue increased 1.7 per cent and its NPI grew 3 per cent over the previous corresponding period on the back of higher revenue and lower operating expenses.
On the flip side, tenant sales at Wisma Atria declined 1 per cent, mainly due to lower committed occupancies at the mall and tenant transitions during the quarter. Shopper traffic was down 2.5 per cent as the majority of Isetan’s strata-owned space remained closed for renovations since April 2015.
Wisma Atria retail recorded lower committed occupancy of 94.9 per cent as at Dec 31, largely due to tenant mix reconfiguration at level 1. Ngee Ann City retail revenue gained 1 per cent while NPI increased 2 per cent. The next rent review for the Toshin master lease is due in June 2016.
Meanwhile, the Singapore office portfolio continues to be supported by leasing demand as office supply pipeline in Orchard Road remains limited. The Singapore office portfolio revenue and NPI increased 3.9 per cent and 3.4 per cent respectively, on the back of 1.7 per cent positive rental reversions for leases committed in the second quarter.
As at Dec 31, full occupancies were achieved for both Wisma Atria and Ngee Ann City offices. Some 40 per cent of the office leases due for expiry this financial year by gross rent have been either renewed or newly leased out as at Dec 31. SGReit units today ended half a cent higher at 73 cents.