Higher rental income from both Paragon and The Clementi Mall (TCM) have helped boost SPH REIT’s net property income (NPI) by 5.2 per cent to S$42.7 million (US$30.5 million).

Its gross revenue for the quarter ending in March was also up, by 1.7 per cent.

The rise was underpinned not only by the higher mall returns, but also lower utility expenses and a one-off provision for property tax in the second quarter of last year, according to OCBC Investment Research. Excluding this one-off effect, NPI still increased by 2.9 per cent.

Both Paragon and TCM achieved 100 per cent committed occupancy, while strong rental reversions of 4.3 and 8.3 per cent respectively were secured for leases expiring in the first half of this year.

Overall portfolio rental uplift came in at 6.2 per cent.

CEO Susan Leng says the REIT continues to curate a tenancy mix that strengthens the positioning of each mall.

“Our tenants are the cornerstone of our business,” she says. “As well as introducing new tenants to the malls, we proactively engage our tenants to rejuvenate their concepts and ambience of their stores.”

SPH REIT’s portfolio comprises a 99-year leasehold interest in Paragon from July 24, 2013, and a 99-year leasehold interest in TCM from August 31, 2010. Valued at $3.23 billion, the properties have an aggregate net lettable area of about 907,000 sqft (84,263 sqm). The tenant base comprises about 460 local and international retailers and medical specialists.