Suntec Real Estate Investment Trust (Suntec Reit) saw a 19.8 percent year-on-year drop in its distribution per unit (DPU) in Q4 2010, attributed to higher interest expenses from bank loans and convertible bonds.
ARA Trust Management (Suntec) Ltd, the manager of Suntec Reit, said that distribution per unit (DPU) dropped to 2.316 cents from 2.886 cents in the previous year, while distributable income fell six percent to S$44.9 million.
Meanwhile, gross revenue fell 0.6 percent to S$61.4 million, attributed to a decline in revenue from both office and retail properties. Nevertheless, earnings per unit hit 7.708 cents from a loss of 12.051 cents in 2009. This was attributed to a net surplus from the revaluation of its investment properties.
ARA Trust Management said it remains upbeat and expects ongoing challenges within the retail sector this year. “Nonetheless, Suntec Reit’s strong 2.4 million sq feet office portfolio and 1.1 million sq ft retail portfolio strategically located in the heart of Singapore’s central business district is well-positioned to meet the challenges.”
In contrast, the Reit’s overall committed occupancy for office portfolio stood at 98.8 percent as of 31 December, compared to 96.8 percent in 2009. One Raffles Quay has achieved a full committed occupancy, while the Marina Bay Financial Centre received 96.5 percent committed occupancy.
“Committed occupancy for Suntec City office has recorded six straight quarters of growth. With the steady recovery of the Singapore office market and our strong committed occupancy, we expect the negative rental reversions of our office portfolio to bottom out by end 2011,” said Yeo See Kiat, Chief Executive of ARA Trust Management.