Suntec REIT’s Q2 net income slips 7.5% to $52.7m in Q2

Blame it on Park Mall divestment hurting revenue.

According to a report by OCBC, net property income slipped 7.5% YoY to $52.7m in Q2.

Gross revenue also slipped 3.1% YoY to $78.9m, on back of Suntec REIT’s divestment of Park Mall. This was partly offset, though, by contribution from the opening of Suntec City mall (Phase 3) following the completion of its AEI.

DPU was flat at 2.501 S cents, and was lifted by a distribution from capital amounting to $8m, versus a distribution from capital of $6m in 2Q15.

Further, Suntec proactively managed its lease expiry profile in Q2, bringing down its office as well as retail lease expiries for the remainder of the year. However, committed portfolio passing rents continued to soften.

Meanwhile, H1 saw Suntec REIT’s gross revenue inch up 0.9% to $157.3m, with DPU edging up 3% to 4.872 S cents.