- Full year gross revenue and NPI declined 4.6% and 4.3% respectively to S$867.3m and S$654.4m, with lower income contribution from divestments (2 Japan Assets, Festival Walk Office) offsetting stronger income from SG assets (+2.3% y-o-y on both revenue and NPI).
- Distributable income declined a slower 0.4% y-o-y primarily on lower interest expenses in the year (+15% y-o-y), albeit a one-off income tax charge paid (S$8.3m) in relation to Festival Walk Tower divestment.
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A clear distinction between SG and overseas performance
- Operationally, performance was broadly in line with expectations, with still a clear distinction between SG and overseas performance.
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- In contrast, overseas assets reversions were still negative in the double-digit range (HongKong:-10.8% / China:-21.3% / Japan: -3.1% / Korea: 51.3%), reflecting continued soft leasing conditions, albeit generally stable occupancies across.
- This "two-speed" dynamic was also evident in valuations, with Singapore assets rising ~3.1% led by VivoCity (+5.0%), while overseas valuations declined 9.2% in S$ terms with ~half of the impact from foreign exchange translation.
Our views.
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