PARAGON real estate investment trust (Reit) grew its revenue 3 per cent year on year (yoy) to S$223 million in the third quarter ended Sep 30, up from S$215.6 million over the same period last year, the manager announced in a business update on Thursday (Nov 7).
Growth was driven by its Singapore-based shopping centre Paragon, where revenue rose from S$128.6 million to S$135.5 million over the same period a year ago. Similarly, revenue for The Clementi Mall increased from S$32.8 million in Q3 FY23 to S$35 million in Q3 FY24.
Revenue remained relatively flat at the Reit’s two Australian shopping malls, Figtree Grove and Westfield Marion.
Paragon Reit saw Q3 tenant sales in Singapore decline 3 per cent yoy to S$671.8 million, with the two malls in the city-state posting a 100 per cent occupancy rate as at end-September.
Meanwhile, the Australian assets recorded a 1 per cent yoy increase in tenant sales to A$741.8 million (S$652.6 million). The Westfield Marion and Figtree Grove malls had occupancy rates of 96.6 per cent and 97.5 per cent, respectively.
Overall, Paragon Reit’s portfolio occupancy rate stood at 97.9 per cent at the end of the quarter, with a weighted average lease expiry of 4.8 years by net lettable area and 3.1 years by gross rental income.
In terms of its debt profile, Paragon Reit’s gearing stood at 35.9 per cent as at Sep 30, with a 4.5 per cent average cost of debt and 3.4 times interest cover.
Looking ahead, the Reit manager said it would “continually optimise the tenant mix of its properties” and implement asset enhancement initiatives and marketing plans. It will also explore acquisition opportunities that will add value to the Reit’s portfolio and improve returns to unitholders, it added.
Units of Paragon Reit ended Thursday at S$0.855, down S$0.01 or 1.2 per cent, before the announcement.
