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FINANCIAL
REVIEW
FINANCIAL PERFORMANCE
GROUP
FY 2016/17
(S$’000)
FY 2015/16
(S$’000)
CHANGE
(%)
Gross revenue
216,364
219,679
(1.5%)
Property expenses
(49,476)
(49,357)
0.2%
Net property income
166,888
170,322
(2.0%)
Non property expenses
(57,595)
(57,325)
0.5%
Net income before tax
109,293
112,997
(3.3%)
Change in fair value of derivative instruments
1,425
(6,487)
NM
Foreign exchange gain/(loss)
3,819
(11,610)
NM
Change in fair value of investment properties
(16,321)
77,973
NM
Gain/(Loss) on divestment of investment properties
770
(87)
NM
Impairment loss on intangible asset
-
(11,214)
(100.0%)
Total return for the period before tax and distribution
98,986
161,572
(38.7%)
Income tax
1,268
2,324
(45.4%)
Total return for the period after tax, before distribution
100,254
163,896
(38.8%)
Non-tax deductible/(chargeable) items and other adjustments
10,191
(47,394)
NM
Income available for distribution
110,445
116,502
(5.2%)
Income to be distributed to Unitholders
107,315
112,987
(5.0%)
Distribution per Unit
4.92 cents
5.18 cents
(5.0%)
Total operating expenses
(1)
69,235
68,875
0.5%
Net asset value
(2)
2,009,346
2,017,551
(0.4%)
Total operating expenses to net asset value
3.4%
3.4%
NM
Notes:
(1)
Total operating expenses mainly comprise property expenses, management fees and trust expenses, including all fees and charges paid to the Manager and Trustee.
(2)
Net assets as at 30 June 2017 and 30 June 2016 respectively.
Group revenue of S$216.4 million for
FY 2016/17 was 1.5% lower than
S$219.7 million achieved in FY 2015/16.
NPI for the Group was S$166.9 million,
representing a decrease of 2.0% over
the corresponding period, mainly due
to lower contributions from Wisma
Atria Property and Ngee Ann City
Property (Office), as well as Myer
Centre Adelaide, Plaza Arcade, China
and Japan Properties, partially offset
by stronger performance of Ngee
Ann City Property (Retail), Malaysia
Properties and David Jones Building.
Singapore Properties contributed
62.2% of total revenue, or S$134.5
million in FY 2016/17, 0.2% higher than
in FY 2015/16. NPI increased by 0.3% to
S$107.0 million for FY 2016/17, mainly
due to the increase in base rent from
Toshin master lease at Ngee Ann City
Property (Retail) from June 2016 as well
as the recognition of S$1.9 million pre-
termination rental compensation for a
lease at Wisma Atria Property which
has been filled up, partially offset by
lower occupancies for Singapore offices
as well as lower average rents at Wisma
Atria Property (Retail).
Australia Properties contributed 22.7%
of total revenue, or S$49.1 million in
FY 2016/17, 1.6% lower than in FY 2015/16.
NPI was S$31.5 million, 4.9% lower than
in FY 2015/16, mainly due to Plaza
Arcade redevelopment works, lower
revenue at Myer Centre Adelaide
partly due to vacancies and outgoing
adjustments, allowance for rent arrears,
as well as higher expenses, partially
offset by higher occupancy at David
Jones Building and appreciation of
A$ against S$.
Malaysia Properties contributed
12.6% of total revenue, or S$27.3 million
in FY 2016/17, 6.0% higher than in
FY 2015/16. NPI was S$26.4 million,
6.4% higher than in FY 2015/16, mainly
due to extension of master leases at
higher rental rates from June 2016,
partially offset by depreciation of
RM against S$.
China and Japan Properties
contributed 2.5% of total revenue,
or S$5.4 million in FY 2016/17. NPI was
S$1.9 million, 65.6% lower than in
FY 2015/16, mainly in line with the mall
repositioning at the China Property,
loss of contributions from Roppongi
Terzo and Harajuku Secondo which
were divested in January 2016 and
May 2017 respectively, as well as
depreciation of RMB against S$,
partially offset by appreciation of
JPY against S$.
Non property expenses were
S$57.6 million in FY 2016/17, 0.5%
higher than in FY 2015/16, mainly due
to higher management fees and
borrowing costs, partially offset by
higher bank interest income earned
in FY 2016/17.
Finance expenses for FY 2016/17 were
S$38.9 million, S$0.2 million or 0.4%
higher than in FY 2015/16. This was
mainly due to interest cost incurred
on the 10-year S$70 million Series 004
PERFORMANCE
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