SPH REIT’s NPI edges up 0.9% YoY to $0.6m in Q2

Due to a one-off charge for prior year property tax.

SPH REIT closed the second quarter of FY16 with net property income (NPI) up 0.9% YoY to $0.6m mainly due to an exceptional provision for prior year property tax based on the assessment received.

According to a report by OCBC, excluding this one-off figure, SPH REIT’s NPI would have edged up 3.2% YoY.

Moreover, portfolio for SPH REIT remained firm as The Clementi Mall (TCM) was fully leased, while Paragon was also nearly fully occupied (99.9%) as at Feb 29 2016.

For TCM, rental reversions came in at 3.1% in 1HFY16.

Meanwhile, management continued to fine-tune its tenancy mix at Paragon—it added new tenants like Diesel, Dutch Baby Cafe and GOCCO. It bagged positive rental reversion of 4.3% for the entire portfolio in the first half of FY16. Paragon saw a rental uplift of 4.3%, which bodes well as it reflects a hefty 22.5% of the mall’s NLA.

Moving forward, SPH REIT has limited leasing risks for the remainder of the financial year as it has only 1.2% and 0.4% of leases poised for renewal (as a percentage of gross rental income) for Paragon and TCM respectively.

“Management updated us that it has already started engaging its tenants on negotiations for leases expiring in FY17 (30.5% of gross rental income),” the report asserts.

Also Read

One Sophia sells 30% of units at weekend launch

SLA launches tender to revitalise Tanjong Katong Complex

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit