Yahoo Finance Paragon REIT reports higher revenue in 1QFY2024 update, mulls acquisitions
Paragon REIT says it has rights of first refusal for the Woodleigh Mall, which opened last May.
Paragon REIT has reported gross revenue of $73.8 million for its 1QFY2024, up 2.5% y-o-y.
Paragon, its crown asset, enjoyed higher revenue of $44.5 million for the quarter ended March, up from $42.7 million in the year earlier, says the REIT in a presentation deck for it 1QFY2024 business update.
The mall's visitor traffic increased from 3.5 million in 1QFY2023 to 3.8 million. However, tenant sales in the same period dipped slightly from $170.5 million to $169.2 million.
Clementi Mall, its other key asset in Singapore, enjoyed both higher visitor traffic and tenant sales.
Gearing as at March 31 was held at just 29.9%, relatively lower than some other REITs that are closer to 40%.
Its average cost of debt was 4.6% and its interest coverage ratio was 3.4 times.
Just over two months ago, Paragon REIT said it had turned down an offer by Cuscaden Peak to buy the Seletar Mall.
The $550 million offer was made under the rights of first refusal Paragon REIT has over this asset as the acquisition will not be in the best interests as it will be dilutive to its DPU.
Nonetheless, in the presentation deck for this 1QFY2024 update, the REIT says it is exploring acquisition opportunities that will add value to its portfolio and improve returns to unitholders.
Paragon REIT says it has rights of first refusal for the Woodleigh Mall, which opened last May.
Paragon REIT closed May 6 at 84 cents, down 0.59%.
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