SPH REIT 1QFY2022 Updates

SPH REIT Portfolio

SPH REIT has provided their key business and operational updates for 1QFY2022 on 7th January 2022. The key highlight of the updates is focused on SPH REIT’s portfolio occupancy and tenant sales.

In Singapore, occupancy improved to 99.8% from 98.9% in 4Q FY21. Tenants’ sales stayed resilient in 1Q FY22 despite a 6 weeks restriction in dining-in (limited 2 pax vs 5 pax in 1Q FY21) with sales reaching 97% of 1Q FY21 for Paragon and The Clementi Mall.

In Australia, Westfield Marion Shopping Centre continued to demonstrate its dominance in Adelaide, South Australia, with tenant sales increasing 6% year-on-year in the midst of COVID-19.

Figtree Grove Shopping Centre, located in Wollongong, New South Wales, was in lockdown for approx. 3.5 months until 10 Oct 21. Tenant sales have recovered close to pre-COVID-19 levels for Nov 2021 post lifting of lockdown.

Occupancy

Overall portfolio occupancy stood healthily at 98.8% with a Weighted Average Lease Expiry (WALE) at 5.5 years.

Compared to a year ago, occupancy has improved across the malls.

As of 30 November 2021, the occupancy for each asset is as follows:

  • Paragon (99.7%)
  • The Clementi Mall (99.9%)
  • The Rail Mall (100.0%)
  • Figtree Grove Shopping Centre (99.1%)
  • Westfield Marion Shopping Centre (98.2%)

Lease Expiry

Only 10% of the leases are expiring in terms of Net Lettable Area (“NLA”) in FY22.

SPH REIT 1Q2022 Lease Expiry

Debt

As of 30 November 2021, the total debt was estimated to be S$1.3 billion. The Weighted Average Term to Maturity stood at 2.7 years with debts well staggered over the next five years.

76% of the borrowings are hedged at fixed rate while the remaining 24% are based on floating rate. Thus, there is nothing much to worry about fluctuating foreign exchange rates which can affect borrowings.

S$225 million of revolving credit facilities are also available. Thus, there is nothing worrying about refinancing of it loans.

SPH REIT Debt Maturity Profile 1Q2022

Summary of SPH REIT 1QFY2022 Updates

Singapore’s Ministry of Health has stated that the Omicron variant is likely to be more transmissible but less severe than the Delta variant.

At the point of writing this post, the number of Omicron cases are on the rise. Let us hope that there are no more further tightening measures which can hinder the recovery of tenant sales and occupancy of retails malls.

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