SINGAPORE - SPH Reit's net property income fell 1.2 per cent to S$166 million for the full year ended Aug 31 owing to lower revenue at Paragon mall, though it enjoyed higher takings from The Clementi Mall and the recently acquired The Rail Mall.

Overall, gross revenue dipped 0.4 per cent to S$211.8 million, its financial statements showed.

Paragon registered a negative rental reversion of 3.7 per cent for new and renewed leases for FY2018 as earlier leases were committed during the retail sales downturn. The overall decline moderated during the financial year, the real estate investment trust (Reit) added, in tandem with the recovery in retail sales from the second half of 2017.

On the bright side, more tourists and improving consumer sentiments led Paragon to record a 2.7 per cent increase in visitor traffic to 18.8 million. Tenant sales grew by 2.7 per cent to S$693 million.

Meanwhile, The Clementi Mall chalked up a positive rental reversion of 3 per cent in FY2018 with a renewal of 5.9 per cent of the mall's net lettable area. Visitor traffic at The Clementi Mall was on a par with FY2017 at 29.9 million, but tenant sales grew by 2.2 per cent to S$230 million.

Overall occupancy for the portfolio was 99.4 per cent.

The portfolio recorded a valuation of S$3.368 billion as at Aug 31, versus S$3.278 billion in FY2017. Net asset value per unit was maintained at 95 Singapore cents as at Aug 31.

For the full year ended Aug 31, SPH Reit's distribution per unit (DPU) clocked 5.54 Singapore cents, up 0.2 per cent from 5.53 Singapore cents in FY2017.

It declared a DPU of 1.43 Singapore cents for the fourth quarter ended Aug 31, 2018, 0.7 per cent higher from 1.42 Singapore cents a year ago.

Net property income for the fourth quarter fell 1.9 per cent to S$40.98 million as property operating expense rose at a faster pace than gross revenue. Gross revenue edged up 0.2 per cent to S$52.96 million on the back of higher rental income from The Clementi Mall and two months' contribution from The Rail Mall, which was acquired in June this year.

Commenting on its latest acquisition, The Rail Mall, SPH Reit Management chief executive Susan Leng said: "Plans are underway to strengthen its positioning and to initiate community programmes leveraging the Rail Corridor to attract a wider catchment."

SPH Reit will pay out the DPU to unit holders on Nov 21. Units in SPH Reit closed at 98.5 Singapore cents, down 1.5 Singapore cents, on Thursday (Oct 11).