Sycom Property Fund reported distributable earnings of 70.63 cents per unit for the six months ended September which represents growth of 10.1% over the 64.15 cents per unit distribution for the same period in the prior year.
This is slightly ahead of the guidance provided in the company's results release in May, and is due partly to a stronger than expected performance from the retail portfolio, and partly to a reduction in the asset management fee following a sharp decline in listed property unit prices, according to Sycom.
The property portfolio experienced good income growth of 10.5%. Revenue growth of 13.8% was recorded for the half-year.
Looking ahead, Sycom said its commercial portfolio is well positioned to continue delivering solid growth. The retail environment, however, is likely to become more challenging, placing constraints on rental growth.
"There is also an increased risk of failure amongst smaller tenants in certain retail segments, and management will continue to monitor individual tenant performance closely to mitigate this risk. The portfolio will also benefit from the combined expertise of Acucap and Parkdev as asset managers.
"Growth in the second half year is expected to remain comparable with that achieved in the first period," the property fund added.
