SINGAPORE - Paragon Real Estate Investment Trust (Reit) grew its gross revenue 3 per cent year on year to $73.8 million in the first quarter ended March 31, it announced in a business update on May 6.

Growth was driven by its Singapore-based shopping centre Paragon, where gross revenue rose 4.2 per cent to $44.5 million, and The Clementi Mall, which posted a 7.4 per cent rise in gross revenue to $11.6 million.

Gross revenue remained relatively flat at the Reit’s remaining Singapore property, The Rail Mall, and its two Australian shopping malls, Westfield Marion and Figtree Grove.

The Reit saw first-quarter tenant sales in Singapore rise 1.4 per cent to $236.9 million, with all three malls in the city-state posting a 100 per cent occupancy rate as at March 31.

But it faced a 0.8 per cent fall in first-quarter tenant sales in Australia to A$238.5 million (S$213 million). The Westfield Marion and Figtree Grove malls had occupancy rates of 97 per cent and 97.8 per cent respectively.

Overall, Paragon Reit’s first-quarter occupancy rate stood at 98.1 per cent at the end of the quarter, with a weighted average lease expiry of five years by net lettable area and 2.9 years by gross rental income.

In terms of its debt profile, the Reit’s gearing stood at 29.9 per cent as at March 31, with a 4.57 per cent average cost of debt and 3.4 times interest cover.

Looking ahead, Paragon Reit plans to explore acquisition opportunities. The Reit has a right of first refusal on future income-producing properties of its sponsor, Cuscaden Peak Investments, that are used primarily for retail purposes in the Asia-Pacific.

One such property is The Woodleigh Mall, which opened in May 2023.

Paragon Reit added that it would continually optimise the tenant mix of its properties and implement asset enhancement initiatives and marketing plans.

The counter ended May 7 at 85 cents, up one cent or 1.19 per cent. THE BUSINESS TIMES