Suntec Reit’s Q4 DPU edges up

This brings 2009 DPU up 6.2% to 11.703 cents

SUNTEC Real Estate Investment Trust (Reit) reported a distribution per unit (DPU) of 2.886 cents, for its fourth quarter ended Dec 31, 2009, one per cent higher year-on-year.

This brings its DPU for 2009 to 11.703 cents, a 6.2 per cent increase.

Its distribution income for the quarter stood at $47.83 million, up 8.4 per cent from $44.1 million for the same period a year ago. For the year, Suntec Reit posted a distribution income of $189.6 million compared to $167.7 million for 2008.

‘I am happy to report that, amidst the serious challenges in 2009, we managed to record a strong growth of 13.1 per cent in our distribution income for the financial year ended December 31 2009,’ said Yeo See Kiat, chief executive officer of ARA Trust Management (Suntec) Limited, the manager of Suntec Reit.

‘Furthermore, we managed to secure a club loan of $825 million . . . in early 2009 to address all our refinancing needs in FY09.’

Gross revenue for the quarter, however, slipped 2.7 per cent to $61.8 million, mainly due to lower retail revenue.

Suntec Reit’s gross office revenue saw a marginal increase of 0.3 per cent to $28.8 million for the quarter because of marginally higher rents from Park Mall.

For the year ended Dec 31, gross revenue rose 5.4 per cent to $253.1 million.

For Suntec Reit’s office and retail portfolio, the overall committed occupancy stood at 96.8 per cent and 98.1 per cent respectively as at Dec 31, 2009.

Net property income also dipped 1.4 per cent to $47.2 million for the quarter, but rose 5.6 per cent to $192.2 million for the year.

Net financing costs incurred for the quarter was $18.9 million, an increase of 37.3 per cent over Q4 FY2008, mainly attributed to the net loss of $5.9 million from the re-measurement of interest rate swap transactions and convertible bonds, which has no impact on distributable income.

Excluding the re-measurement, the net financing cost for Q4 FY2009 was about $13.1 million.

For the quarter, the overall all-in financing cost averaged 3.47 per cent and the gearing ratio stood at 33.3 per cent as at end-2009.

The counter closed one cent lower at $1.33 in trading yesterday.

Source: Business Times, 26 Jan 2010