SPH Reit extends tenants' relief scheme

Base rents of most-affected tenants effectively waived for 2 months

SPH Reit's net property income rose to $56.5 million, up 23.3 per cent year on year. This was mainly due to the contribution from the acquisition of Westfield Marion Shopping Centre (left) in South Australia.
SPH Reit's net property income rose to $56.5 million, up 23.3 per cent year on year. This was mainly due to the contribution from the acquisition of Westfield Marion Shopping Centre (above) in South Australia. PHOTO: SPH REIT

SPH Reit (real estate investment trust) will be extending its relief scheme for tenants affected by the coronavirus pandemic, which will effectively see the base rents of the most affected tenants waived for up to two months.

This comes as the trust reported an increase in net property income for its second quarter.

SPH Reit, which is managed by a wholly owned subsidiary of Singapore Press Holdings (SPH), announced yesterday that its net property income rose to $56.5 million, up 23.3 per cent or $10.6 million from the same period last year.

This was mainly due to the contribution from the acquisition of Westfield Marion Shopping Centre in South Australia, which was completed in December and contributed $8.4 million to the increase.

Malls here also registered positive rental reversions, with Paragon and The Clementi Mall recording an increase of $1.3 million and $0.2 million respectively.

SPH Reit's portfolio achieved an occupancy rate of 98.9 per cent as of end-February.

Distribution per unit for the second quarter was 0.3 cent, a decline of 78.7 per cent compared with last year. This figure is modest in the light of the challenges brought on by the coronavirus in the months ahead, SPH Reit said.

The trust has said it will pass on fully the property tax rebates announced by the Government to tenants. It also granted tenant rebates amounting to about $4.6 million in February and last month, as part of the tenants' assistance scheme.

The scheme will now be extended to this month and next. Tenants most affected by the measures to curb the outbreak will get rental rebates of up to 50 per cent of base rent, on top of the full property tax rebates being passed on to them.

Tenants that are required by the Government to stop operations will get a full waiver of rent for the period of closure.

SPH Reit chairman Leong Horn Kee said: "Given the continued challenges our tenants are facing with the tightened social distancing measures and enforced closures, SPH Reit will monitor the effects of Covid-19 closely and work with the tenants to overcome this difficult period."

SPH is also offering students at its purpose-built student accommodation in Britain the option to leave their tenancies early in the current academic year and have their rents waived or refunded, if they have paid them till the end of the term.

There will be an expected loss of revenue of £4 million (S$7 million) to £8 million till the end of the financial year, SPH added.

SPH chief executive Ng Yat Chung said: "Our priority is the safety and well-being of our students and employees, ensuring that they are provided with a safe environment as we deal with the pandemic together."

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A version of this article appeared in the print edition of The Straits Times on April 02, 2020, with the headline SPH Reit extends tenants' relief scheme. Subscribe