| Latest Forum Topics / Suntec Reit Last:1.46 -- |
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Suntec REIT
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Joelton
Supreme |
26-Aug-2026 09:40
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JP Morgan downgrages Suntec REIT to neutral, sees better risk-reward in CICT Suntec REIT&rsquo s unit price is up more than 9% this year as at Aug 25, outperforming the S-REIT Index. Its FY2025 and 1H2026 DPU outperformed expectations. &ldquo We believe key positives, including healthy DPU growth and leverage to Singapore&rsquo s tight office market, are largely priced in,&rdquo notes a JP Morgan report dated Aug 25. &ldquo We see better risk-reward in CapitaLand Integrated Commercial Trust (CICT), which offers higher FY2026/FY2027 yields of 5.1% and 5.4% with stronger asset quality versus 5.0% and 5.2% for Suntec REIT,&rdquo the report adds. In the report, Suntec&rsquo s price target has been cut to $1.55 from $1.60 previously. JP Morgan' s REIT, real assets and real estate analysts Terence Khi and Mervin Song suggest that Suntec REIT could divest its one-third stake in One Raffles Quay (ORQ) for $1.4 billion to fund the $1.2 billion price for 9 Penang Road. According to the duo, the asset swap of 9 Penang Road (and ORQ) could deliver 1%-3% accretion to FY2027 DPU based on rents of $11-12 psf per month and 3.4%-3.7% yield. Khi and Song estimate 9 Penang Road&rsquo s NPI yield in FY2025 at 3.1% on a valuation of $1.2 billion or $2,977 psf at $10 psf pm. 9 Penang Road offers high income visibility, being fully leased to UBS on a long-term lease. With full ownership, Suntec REIT should also be able to secure tax transparency, versus its one-third stake in ORQ which is not tax transparent. 9 Penang Road also has a longer land tenure of 89 years compared to ORQ&rsquo s 74 years, the JP Morgan analysts say. |
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Newbornborn
Veteran |
21-Aug-2026 09:08
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Recent movement ,something is going to happened , I suspect maybe privatisation | ||
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Joelton
Supreme |
01-Aug-2026 16:11
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Suntec REIT&rsquo s operational metrics improve, looks to divest mature Aussie assets Suntec REIT&rsquo s reported DPU of 3.936 cents (24.8% y-o-y) in 1HFY2026 for the six months to end-June was ahead of JP Morgan&rsquo s expectation, according to a report by Terence Khi and Mervin Song, the property and REIT analysts at JP Morgan. The improvement was driven by stronger operating performance across the Singapore office and retail portfolios, lower financing costs, and the absence of additional Australian withholding tax provisions following confirmation of its Managed Investment Trust (MIT) status. During a results briefing on July 24, Chong Kee Hiong, CEO of Suntec REIT&rsquo s manager, shared that the strategic review announced in March has yet to be presented to the board of the REIT manager. &ldquo Directionally, it&rsquo s business as usual. We will focus on improving operations. In terms of divestment, we are still focused on divesting our mature assets in Australia and our strata-title units at Suntec Office Towers. I don&rsquo t think the strategic review will go against this direction,&rdquo Chong says. The Australian market is warming up, Chong indicates. As a case in point, Link REIT announced that the planned divestment of 50% of 100 Market Street Sydney is at AUD226 million ($202.84 million) to Aware Superannuation. The agreed value is equivalent to the property&rsquo s book value of AUD451.75 million as of end-March. &ldquo Compared to say five years ago, we see more realistic prices. The recent transactions are done at close to last year&rsquo s book value. So it&rsquo s not all doom and gloom for Australia now. I&rsquo m not saying it&rsquo s easy, but transactions are picking up,&rdquo Chong says. When asked if Suntec REIT would be interested in divesting One Raffles Quay (ORQ), Chong says it is structured as a private company and does not enjoy tax transparency, so the tax payable on ORQ&rsquo s income is 17%. It was valued at S$1,387 million as of end-2025. Hence, he would not rule it out. &ldquo While the key intent is to divest Australian assets to redeploy capital back to Singapore, management also identified ORQ as the lowest-yielding Singapore asset due to tax leakage and indicated it could be divested if proceeds can be redeployed into more accretive Singapore assets,&rdquo JP Morgan says. Suntec REIT refinanced its AUD loans last year. About 30% of the asset value of the Australian portfolio, which was valued at $1,651.6 million as of end-2025, is financed in AUD. &ldquo Generally when one goes overseas to buy a property, the jurisdiction won&rsquo t allow you to finance 100% in local currency. The bank will lend you 50% to 60% of the value of the property. The remaining 30-40% is funded through shareholder loans into the company in that country, whether it&rsquo s Australia or the UK. That 40% is always in SGD,&rdquo says Chong. The SGD part is exposed to forex risk, which can be overlaid with hedges by converting the SGD to AUD via a swap. In the extreme case, some market observers may view this as a carry trade, but the REIT has no intention to do a carry trade. &ldquo We just do a simple &lsquo plain vanilla&rsquo borrowing in local currency,&rdquo Chong adds. In some cases, REITs use perpetual securities to diversify their sources of funding. Perps can also lower aggregate gearing as the regulator allows REITs to classify perps as hybrids and not debt. Interestingly, Suntec REIT redeemed $150 million of 4.25% perps, which increased aggregate leverage to 43%. &ldquo Suntec REIT redeemed its perpetual securities using short-term financing rather than issuing new perps into a weak market. Management believes current funding conditions do not warrant immediate refinancing and intends to revisit capital market funding when conditions stabilise,&rdquo notes the JP Morgan report. The cost of debt guidance for this year is 3.6% compared to the average cost of debt of 3.55% in 1H2026. Better performance from UK next year Operationally, Suntec REIT could experience an improved performance next year. The Minster Building in London, which has a low committed occupancy rate of 85.6% as of end-June, could be filling up. It has two vacant floors, and Chong indicated that one floor is in lease documentation and this could be completed in 3Q2026. Terms have been agreed for the second vacant floor. If so, occupancy could become close to 100% by the end of the year. Chong indicated that London&rsquo s leasing conditions are better than Melbourne and Adelaide. Leasing markets in Melbourne and Adelaide remain tenant-led with elevated incentives, prompting Suntec REIT to be flexible on its leasing strategy. The Australian portfolio is likely to be supported by strong occupancies across the Sydney assets and 477 Collins Street. For instance, the vacated space at 177 Pacific Highway for which Suntec REIT had received compensation has been back-filled. In Singapore, committed occupancy at Suntec City Office stood at 100% as at the end of June. ORQ and Marina Bay Financial Towers 1 and 2 were at 99.1% and 98.7% respectively as at June 30. Rental reversion picked up to 11% at Suntec City Office in 2Q2026. Both NPI and joint-venture income from the Singapore office portfolio increased 2.3% and 9.3% y-o-y respectively. Chong and his team guided for a rental reversion of 5% for 2026. Suntec City Mall&rsquo s occupancy rose by 0.6 percentage points to 99.6% while rental reversion remained healthy at 8.5% in 1H2026. Suntec City Mall&rsquo s NPI increased 13.6% y-o-y in 1H2026, supported by higher occupancy and rents, as well as incremental income from the completed AEI. Tenant sales psf rose 5% y-o-y in 1H2026 with growth from F& B, supermarkets and leisure and entertainment. Rental reversion should be close to 10% for the year, Chong&rsquo s team add. JP Morgan maintains an overweight rating for Suntec REIT, with a price target of $1.60 by June 2027 based on its dividend discount model using a discount rate of 7.4%. This translates into a yield of 4.7% in FY2026 and 4.9% in FY2027. |
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PiRPiR
Master |
29-Jul-2026 13:37
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10:54 PM EDT, 07/28/2026 (MT Newswires) -- Suntec REIT (SGX:T82U) agreed to amend and restate an agreement with HSBC Singapore branch for a SG$100 million facility agreement, according to a Tuesday filing with the Singapore Exchange.
The amendment extends the maturity date of the facility and will be used to refinance existing indebtedness, general corporate purposes, asset acquisitions, asset enhancements and working capital. |
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PiRPiR
Master |
24-Jul-2026 21:26
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[SINGAPORE] One Raffles Quay could be a candidate for divestment, the manager of Suntec Real Estate Investment Trust (Reit), which owns one-third of the building, said at an earnings briefing on Friday (Jul 24).The comment was in response to analysts? questions on whether the prime Grade A office asset in the Central Business District could be put on the market if the Reit were to sell a Singapore asset.Suntec Reit owns a commercial property portfolio valued at S$11.8 billion, diversified across Singapore, Australia and the UK.Its Singapore assets comprise Suntec City, a 66.3 per cent stake in Suntec Singapore Convention & Exhibition Centre, and one-third interests in One Raffles Quay and Marina Bay Financial Centre (MBFC).Asked whether One Raffles Quay would be the more likely divestment candidate than MBFC, Chong Kee Hiong, the manager?s chief executive officer, replied: ?Yes, purely based on yield.?SEE ALSOSuntec Reit posts 24.8% rise in H1 DPU to S$0.03936?Positive surprises? in store for S-Reits? H1 earnings as valuations lag fundamentals, say analystsSuntec Reit appoints Celine Tang as board chairman, non-executive directorHe explained that One Raffles Quay is the ?lowest-yielding asset? because it is held in a private limited entity rather than a limited liability partnership, meaning the trust has to pay income tax on its earnings.
So if there?s an opportunity for me to sell and buy Singapore assets, that is something worth considering,? said Chong.Suntec Reit holds a one-third stake in both MBFC and One Raffles Quay. The remaining one-third stakes in One Raffles Quay are held by Hongkong Land and Keppel Reit.nterests in both properties into its S$8.2 billion Singapore Central Private Real Estate Fund.Earlier this year, analysts floated the idea that Suntec Reit could sell its one-third stake in One Raffles Quay to Hongkong Land?s private fund at a premium, after the property giant acquired a 10.8 per cent stake in the trust.cquire 9 Penang Road, a Grade A commercial building tenanted by UBS, from Suntec Reit?s sponsor.Chong stressed that the trust has not begun discussions on divesting its Singapore assets. Instead, it remains focused on selling its mature assets in Australia and strata units in Suntec City Office Towers. could fund accretive acquisitions while the strategic review is ongoing, he added.In March, Suntec Reit?s new sponsor Tang Organization ? controlled by Gordon Tang and his wife Celine ? announced that it is undertaking a review to ?strengthen portfolio performance and enhance capital efficiency?.nd recycling?.The initiatives could ?support higher distributions? in the coming years, while balancing Suntec Reit?s capital management needs and long-term sustainability. The strategic review is expected to be completed by the end of the year.On a potential injection of 9 Penang Road, Chong said the Reit was in no hurry as the Grade A office building is a sponsor asset.ather than a partial stake, as that would give the Reit greater control while reducing issues related to interested-party transactions.For the first half ended June, Suntec Reit?s distribution per unit (DPU) rose 24.8 per cent to S$0.03936, from S$0.03155 in the previous corresponding period. Distributable income rose 25.5 per cent to S$116.5 million from S$92.8 million.The improved DPU came amid stronger operational performance of the Reit?s Singapore office and retail portfolio.A distribution of S$0.01936 per unit was paid out on May 29. The remaining H1 distribution of S$0.02 per unit will be paid on Aug 28.eriod, from S$234.5 million in H1 FY2025. Net property income fell 0.3 per cent to S$159 million from S$159.5 million.Units of Suntec Reit ended Friday 0.7 per cent or S$0.01 higher at S$1.52. |
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PiRPiR
Master |
24-Jul-2026 11:26
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https://www.theedgesingapore.com/capital/results/suntec-reit-reports-1hfy2026-dpu-3936-cents-248-y-o-y | ||
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Joelton
Supreme |
24-Jul-2026 09:34
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Suntec REIT reports 1HFY2026 DPU of 3.936 cents, 24.8% up y-o-y Suntec REIT has reported a distribution per unit (DPU) of 3.936 cents for the 1HFY2026, 24.8% higher y-o-y. Distributable income for the six months ended June 30 increased by 25.5% y-o-y to $116.5 million. The y-o-y improvement was attributed to the stronger operational performance of the REIT&rsquo s Singapore office and retail portfolios, lower financing costs, as well as lower withholding tax provision in Australia as the REIT retained its status as an Australia managed investment trust. These factors more than offset the wabsence of the one-off compensation from the surrender of the three floors at 177 Pacific Highway in Sydney in the 1HFY2025, which have since been backfilled, as well as the weaker performance of The Minster Building in London. For the period, gross revenue grew by 1.9% y-o-y to $238.9 million while net property income (NPI) dipped by 0.3% y-o-y to $159 million. Joint venture (JV) income grew by 7% y-o-y to $54.8 million. &ldquo The results reflect Suntec REIT&rsquo s sound fundamentals, underpinned by our diversified portfolio of high-quality assets and resilient income streams. The strong performance of Suntec City Mall, enhanced by incremental revenue and income from completed asset enhancement initiatives, demonstrates our proactive approach to portfolio management,&rdquo says Chong Kee Hiong, CEO of the manager. As at June 30, Suntec REIT&rsquo s Singapore office portfolio recorded a committed occupancy rate of 99.5%, up 0.5 percentage points y-o-y, while its retail portfolio improved by 1.5 percentage points y-o-y to 99.5%. Its Australia portfolio grew by 1.5 percentage points y-o-y to 90.1% while its UK portfolio inched up by 0.3 percentage points y-o-y to 92.5%. Rent reversion for its Singapore office and retail portfolios stood at a positive 10.1% and 10.7% respectively. Looking ahead, the REIT expects its Singapore office portfolio occupancy to remain high due to limited core CBD office supply and tight vacancies. Rent reversion is expected to remain at a positive 5% for the year. The occupancy rate for Suntec City Mall is also expected to remain high. Rent reversion for the year is expected to be close to 10%. The REIT manager adds that it expects its performance for the retail portfolio to improve due to higher occupancy, rent and marcoms revenue. The performance for Suntec Convention is also expected to remain stable in 2026 with asset enhancement initiatives (AEIs) completed in 2025 and as the meetings, incentives, conferences and exhibitions (MICE) is expected to remain &ldquo healthy&rdquo for the second half of 2026. The REIT expects its Australian portfolio to remain &ldquo stable&rdquo thanks to strong occupancies at 177 Pacific Highway, 21 Harris Street and 477 Collins Street, while it expects to see occupancy growth at The Minster Building in London. Operating performances are also expected to be stable for Nova Properties and The Minster Building during the year. Unitholders will receive the REIT&rsquo s 2QFY2026 DPU of 2 cents on Aug 28. Units in Suntec REIT closed 3 cents lower or 1.95% down at $1.51 on July 23. |
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PiRPiR
Master |
24-Jul-2026 09:16
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SINGAPORE ? Suntec Real Estate Investment Trust reported distributable income of S$116.5 million for the six months ended Jun 30, up 25.5% year-on-year, as firmer contributions from its Singapore office and retail assets offset softer results in Australia and the United Kingdom.
The higher earnings lifted distribution per unit to 3.936 Singapore cents, 24.8% above the year-ago period. The trust did not specify the payment date of the interim distribution. The rebound was driven mainly by Suntec City Mall and the Singapore office portfolio, where occupancy stayed high and recent quarters of positive rent reversions flowed through to topline growth. Lower financing costs and a reduced provision for Australian withholding tax?after the vehicle retained its Managed Investment Trust status?also supported the bottom line. Segmentally, Singapore operations outperformed. Retail income benefited from completed asset-enhancement works at Suntec City Mall, while the office portfolio continued to enjoy tight vacancies against limited new supply in the core central business district. By contrast, the UK portfolio was weighed down by the expiry of a tenant lease at The Minster Building in mid-June 2025, and Australian offices faced muted tenant demand in Melbourne and Adelaide. The absence of last year?s one-off compensation for the surrender of three floors at 177 Pacific Highway in Sydney also created a high base for comparison. Looking ahead, management expects the Singapore office market to remain resilient, projecting near-5% positive rent reversion for full-year 2026. For retail, a healthy labour market, rising household incomes and marquee events such as the F1 Singapore Grand Prix and a BTS concert are seen supporting consumer spending, with full-year rent reversion at Suntec City Mall forecast at close to 10%. The trust will continue proactive leasing in Australia, including fitted-out suites and subdivided spaces, to preserve occupancy in a tenant-led market. In London, improving enquiries at The Minster Building are expected to help narrow vacancies in the second half. Chief executive officer Chong Kee Hiong said the results underscore the resilience of the diversified portfolio and the benefits of earlier asset upgrades. He added that the manager remains focused on long-term value creation through disciplined capital management and active portfolio initiatives. |
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PiRPiR
Master |
23-Jul-2026 22:07
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Suntec Reit posts 24.8% rise in H1 DPU to S$0.03936
Distributable income is up 25.5% at S$116.5 million for the half- year [SINGAPORE] The manager of Suntec Real Estate Investment Trust (Reit) on Thursday (Jul 23) posted a distribution per unit (DPU) of S$0.03936 for the first half ended June, up 24.8 per cent from S$0.03155 in the previous corresponding period.A distribution of S$0.01936 per unit was paid out on May 29. The remaining H1 distribution of S$0.02 per unit will be paid on Aug 28.Distributable income rose 25.5 per cent to S$116.5 million for H1 FY2026, from S$92.8 million in the same period the year before. The manager attributed the improved DPU to the stronger operational performance of its Singapore office and retail portfolio.Lower financing costs also contributed to the better performance, alongside lower withholding tax provision in Australia, with the Reit retaining its managed investment trust status in the country.The operating gains more than offset the absence of a one-off compensation recorded in H1 FY2025 due to the surrender of three floors at 177 Pacific Highway in Sydney. The three floors in the Sydney commercial property have since been backfilled.The gains also offset the weaker performance of The Minster Building, an office property in London, due to the lease expiry of a tenant in mid-June 2025.Revenue up, NPI slipsGross revenue was up 1.9 per cent at S$238.9 million for the half-year period, from S$234.5 million in H1 FY2025.Specifically, revenue from Suntec City ? which comprises both retail and office areas ? increased by 6.2 per cent compared with the year-ago period. Higher occupancy and rent, as well as incremental revenue from the completion of asset enhancement initiatives at the mall contributed to its stronger operating performance.As at Jun 30, the committed occupancy of Suntec City Mall, which is the retail space, was up 1.6 percentage points year on year at 99.6 per cent. Meanwhile, Suntec City Office?s committed occupancy rose 0.5 percentage point from a year ago to 100 per cent.Suntec Singapore, which comprises retail and convention space, contributed revenue of S$40.8 million in H1 FY2026.Revenue from the convention centre remained largely stable at S$28.9 million, compared with S$29 million previously. Although there were fewer large-scale conferences in H1 this year, the loss was mitigated by more consumer events, stronger media revenue and higher rentals from long-term licensees, said the manager.Revenue from Suntec Singapore?s retail space improved to S$11.9 million, from S$10.9 million in the year-ago period due to higher occupancy and rent.However, the Reit?s net property income (NPI) fell 0.3 per cent to S$159 million in H1 FY2026, from S$159.5 million in the previous corresponding period.The manager attributed the decline to the absence of the one-off compensation recorded at 177 Pacific Highway in H1 FY2025 and lower revenue and higher operating expense due to vacancies at The Minster Building.Units of Suntec Reit closed Thursday 1.9 per cent or S$0.03 lower at S$1.51, before the results were announced. |
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Plantoretire
Member |
23-Jul-2026 22:03
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Suntec&rsquo s stellar 24.8% dividend bounce completely confirms that Singapore&rsquo s prime commercial and retail real estate core is highly resilient.
However, Suntec&rsquo s 43% gearing ratio and thin 57% interest rate hedges carry significant macro volatility.
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MrBear12
Supreme |
23-Jul-2026 21:55
Yells: "Cast all our anxieties on Jesus for He cares for us" |
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small improvement
bear is satisfied.
still waiting for 2.5 cents one day...
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PiRPiR
Master |
23-Jul-2026 21:47
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ExDate 30Jul 2.0c payable 28Aug | ||
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PiRPiR
Master |
21-Jul-2026 13:33
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1.55 52week high | ||
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Alignment
Elite |
20-Jul-2026 06:57
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If the Tangs buy out the rest of the shares in the REIT then they would have wasted the S$190m (less net liabilities of the manager) they paid to acquire the manager. This suggests to me at least such an action seems unlikely. | ||
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Joelton
Supreme |
11-Jul-2026 13:04
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Suntec Reit appoints Celine Tang as board chairman, non-executive director [SINGAPORE] Property tycoon Celine Tang has been appointed as chairman and non-executive director to the board of Suntec Real Estate Investment Trust&rsquo s (Reit) manager. Tang, 58, will also be appointed to the board&rsquo s nominating and remuneration committee, the manager said in a bourse filing on Friday (Jul 10). Tang, together with her husband Gordon Tang, owns Tang Organization, the sponsor of Suntec Reit. The property tycoon couple&rsquo s investment company Acrophyte Asset Management acquired Suntec Reit&rsquo s manager earlier this year. In March, Tang Organization said it plans to &ldquo undertake a comprehensive strategic review&rdquo of the Reit&rsquo s portfolio. The Tangs had previously launched a mandatory conditional offer for Suntec Reit in 2024, after their vehicle acquired some 62.5 million units via the market, bringing their stake in the Reit to 31.45 per cent. The bid failed as their unitholdings fell short of the 50 per cent threshold when the offer closed. Tang, together with her husband and son Gallant Tang, are substantial shareholders of Suntec Reit. She directly holds 9 per cent of the units of Suntec Reit, and has a 0.4 per cent deemed interested through the manager. She is currently managing director at Haiyi Holdings and executive director at Tang Dynasty. She was formerly group managing director of property developer SingHaiyi Group, and chairman of construction and property player Chip Eng Seng. Both companies were listed on the Singapore Exchange (SGX), before they were taken private by the Tang family between 2021 and 2022. She was also non-executive chairman at SGX-listed construction company GRC, formerly known as OKH Global. Following Tang&rsquo s appointment, Lock Wai Han will cease to be interim chairman, while remaining as an executive director to the manager&rsquo s board. Lock, who is chief executive of GRC, was appointed as interim chairman in March 2026. Units of Suntec Reit closed 0.7 per cent or S$0.01 higher at S$1.48 on Friday, before the announcement. |
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Alignment
Elite |
28-Apr-2026 13:48
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Why Morgan Stanley so bearish?
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Joelton
Supreme |
28-Apr-2026 11:26
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JP Morgan, DBS and RHB remain positive on Suntec REIT but Morgan Stanley a $1.10 target Suntec REIT&rsquo s 1Q2026 distributions per unit (DPU) which rose 23.9% y-o-y but fell 7.9% q-o-q to 1.936 cents. Nonetheless, DPU was better than Bloomberg&rsquo s consensus. It was also ahead of JP Morgan&rsquo s estimates. The outperformance was underpinned by strong Singapore office and retail performance, and lower financing costs which offset weaker contributions from The Minster Building and Suntec City Convention Centre. On the office front, Singapore office occupancy rose 10 bps q-o-q to 98.8%, led by improvements in One Raffles Quay (ORQ, +1.7 ppts) and Marina Bay Financial Center (MBFC, +2.7 ppts). Rental reversions remained healthy at +9.5% for Singapore office supported by +13.2% for ORQ and MBFC. This coupled with lower interest expense buoyed joint-venture income which rose 9% y-o-y to $27.8 million during the first quarter. The REIT&rsquo s retail rent reversion was +14.3% in 1Q2026. Suntec City Mall&rsquo s tenant sales rose 6% y-o-y in 1Q2026 (better than the +5% in 4Q2025). However, net property income (NPI) from Suntec Convention fell by 44.4% y-o-y in 1Q2026 due to absence of large scale conferences. Elsewhere, The Minster Building in London remains impacted by vacancies following the lease expiry of a tenant in mid-June 2025, with occupancy at 85.4% (unchanged q-o-q). UK portfolio NPI fell 15.6% y-o-y in 1Q2026, with higher non-recoverable costs from vacancies. All-in financing cost fell 15 bps q-o-q to 3.56% in 1Q2026 (FY25: 3.71%). But, with a hawkish RBA, management has guided cost of debt of around 3.6% for the year. The key message during the briefing was the strategic review has not started as the board is still onboarding new members which have to be approved by the Monetary Authority of Singapore. Chong Kee Hiong, CEO of Suntec REIT&rsquo s manager, when questioned indicated that the strategic review is likely to address and identify ways at narrowing the P/NAV discount. Suntec REIT&rsquo s NAV as at Dec 31, 2025 was $2.03. &ldquo The review will assess the existing portfolio on a mid-term basis, evaluating which assets should remain and considering potential asset classes and geographies. The objective is to narrow the NAV discount and improve yield for unitholders,&rdquo JP Morgan describes in an update on April 24. Chong says Hongkong Land has not requested a board seat and does not meet the interested party transaction (IPT) threshold of 15%. Market watchers expect Suntec REIT to acquire 9 Penang Road at some point. In a previous breifing, Chong had suggested that divestment proceeds would be used for any acquisition. Suntec REIT&rsquo s divestment strategy continues to focus on Australian offices and Suntec strata offices. Chong says he sees increased buyer interest in Australia since last year. &ldquo We see more entities interested in Australia, despite interest rates going up. We have more people expressing interest than last year. Of course, they&rsquo ve expressed interest in our best assets,&rdquo he says, adding, &ldquo we won' t do a dilutive acquisition. At this moment we are trading below book, and the cost of equity is around 5% so it&rsquo s difficult to acquire with debt plus equity. It will be a combination of cash from our divestment proceeds taking into consideration we don&rsquo t want our gearing to exceed 45%. So our hands are tied in terms of timing,&rdquo Chong says. When asked whether Suntec REIT would consider divesting its one-third stake in ORQ or MBFC, Chong points out that it isn&rsquo t easy to sell a one-third stake. At any rate the stakes have to be offered to Keppel REIT and Hongkong Land&rsquo s Singapore Central Private equity fund (SCPREF) first. &ldquo We expect Suntec REIT to benefit from organic growth drivers and interest savings, which will underpin a 5.7% 3-year DPU Cagr, with catalysts from the outcome of the strategic review, potential asset recycling to acquire 9 Penang Road and alignment with new shareholder Hongkong Land,&rdquo says the JP Morgan report dated Apr 24. It has maintained its overweight rating with an end-June 2027 price target of $1.60. DBS Group Research has also maintained its target price of $1.60, adding that the strategic review and value unlocking strategies are catalysts. RHB Research maintains its buy rating with a higher price target of $1.72 from an earlier target of $1.67. &ldquo HongKong Land&rsquo s recent entry as a substantial shareholder adds a value-unlocking angle along with ongoing strategic review. We believe these catalysts will continue to narrow Suntec REIT&rsquo s significant 30% trading discount to book value,&rdquo RHB says. On the other hand, Morgan Stanley has an underweight rating on Suntec REIT with a price target of $1.10. |
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PiRPiR
Master |
24-Apr-2026 21:19
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Suntec REIT's (SGX:T82U) distribution per unit or
DPU jumped 24% in the first quarter of the year to SG$0.01936 from SG$0.01563 a year earlier, according to a Thursday filing with the Singapore Exchange. Shares of the REIT were up over 1% in Friday trading. Distributable income rose 25% to SG$57.3 million from SG$45.9 million. Net property income was up by 0.3% to SG$77.3 million compared with SG$77.1 million in the year- ago period. Gross revenue rose 1.9% year over year to SG$115.6 million from SG$113.5 million, backed by strong operating performance. |
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Joelton
Supreme |
24-Apr-2026 11:48
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Suntec Reit Q1 DPU rises 23.9% to S$0.01936 on strong Singapore office, retail performance Retail revenue gets boost from higher occupancy and rent at Suntec City mall, says manager [SINGAPORE] Suntec Real Estate Investment Trust (Reit) : T82U -0.67% recorded a distribution per unit (DPU) of S$0.01936 for its first quarter ended Mar 31, up 23.9 per cent from S$0.01563 in the year-ago period. The manager on Thursday (Apr 23) noted that the improvements came amid stronger operating performance from the Singapore retail and office portfolios, and lower financing costs. Revenue increased 1.9 per cent in Q1 to S$115.6 million from S$113.5 million in the previous corresponding period. Net property income (NPI) inched up 0.3 per cent to S$77.3 million from S$77.1 million in the year-ago period. For the quarter, distributable income to unitholders stood at S$57.3 million, a 24.8 per cent year-on-year increase from S$45.9 million. The distribution will be paid out on May 29. Singapore retail revenue rose 8.7 per cent year on year to S$38.8 million from S$35.7 million in Q1. In the same period, its net property income (NPI) rose 10.1 per cent to 27.3 million from S$24.8 million. The strengthened performance was due to higher occupancy and rent at Suntec City mall, said the manager. Committed occupancy for the retail segment rose to 99 per cent from 98.2 per cent in Q1 2025 the office portfolio&rsquo s committed occupancy rose to 98.8 per cent from 98.7 per cent. Meanwhile, committed occupancy for the Australia portfolio fell on the year to 90.7 per cent from 90.9 per cent. The UK portfolio dropped to 92.5 per cent from 95.3 per cent. The Singapore office and retail portfolios both recorded positive rental reversions of 9.5 per cent and 14.3 per cent, respectively. Suntec Reit&rsquo s total outstanding debt as at Mar 31, 2026, stood at S$4.1 billion, largely unchanged from as at Dec 31, 2025. Its net asset value per unit as at March held steady at S$2.03, compared with December. Aggregate leverage ratio inched up to 41.6 per cent as at end-March, from 41.5 per cent the previous quarter. The trust&rsquo s weighted average debt maturity fell to 2.44 years as at March 2026, from 2.72 years as at December 2025. In terms of retail outlook, the manager noted that retail sales growth is expected to moderate due to cautious consumer spending against global economic uncertainties. It also expects to see retail spend leakage due to the upcoming Johor Bahru-Singapore Rapid Transit System Link, set to launch in 2027. Committed occupancy is forecast to stay high with positive rental reversion projected to be close to 10 per cent. For convention outlook, the manager anticipates a &ldquo stable performance&rdquo in FY2026 amid the &ldquo challenging outlook&rdquo , but added that asset enhancement initiatives completed in FY2025 will enhance income resilience. |
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Joelton
Supreme |
22-Apr-2026 12:11
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Suntec Reit flags near-term pressure on convention business as bookings slow in wake of Iran war Wait-and-see stance and cautious spending slow bookings, but pipeline remains steady with no cancellations [SINGAPORE] The manager of Suntec Real Estate Investment Trus : T82U 0%t (Reit) expects near-term pressure on booking momentum at its Suntec Singapore Convention and Exhibition Centre, as global uncertainty prompts corporates to hold back on bookings. Though there have been no immediate cancellations or postponements, the manager told The Business Times that bookings are slower to firm up, with more organisers adopting a &ldquo wait-and-see&rdquo approach when confirming events and a more &ldquo conservative stance on spending&rdquo . At its annual general meeting (AGM) last Thursday (Apr 16), the manager also explained that the global uncertainty could also have longer-term knock-on effects, including higher costs for event organisers and international delegates, potentially weighing on demand for meeting, incentives, conventions and exhibition (Mice). This was the manager&rsquo s first AGM since Tang Organization took over as sponsor of Suntec Reit. Controlled by Gordon Tan and his wife Celine, Tang Organization is the parent company of Acrophyte Asset management, which in March acquired Suntec&rsquo s manager, previously known as ESR Trust Management (Suntec), for S$190 million. In March, business events magazine Mix Meetings reported that flight cancellations and rerouting due to restrictions in Middle Eastern airspace have disrupted the flow of high-value participants to major trade fairs and exhibitions in Hong Kong and South-east Asia. The conflict has also hit global shipping routes and reduced air-freight capacity &ndash which are both key to trade shows &ndash further straining supply chains and complicating tight setup and teardown schedules. &ldquo For the conference delegates, costs are expected to increase in tandem with higher airfares and accommodation rates,&rdquo Suntec&rsquo s manager added. On the flip side, the manager flagged potential short-term upside from displaced events in the Middle East as organisers look to alternative venues such as Suntec Convention. It has already received &ldquo a few&rdquo enquiries from organisers looking to relocate their events from Dubai to Singapore in the second half of the year. The manager therefore expects its convention business to remain stable in the year ahead, with a &ldquo healthy and stable pipeline of events&rdquo . The Singapore Mice market is likely to continue its growth momentum, especially as the Republic steps up efforts in attracting more business events as part of its long-term tourism strategy, the manager&rsquo s interim chairman and non-executive director Lock Wai Han said in the manager&rsquo s annual report released in late March. Under the Tourism 2040 plan, authorities intend to treble tourism receipts contributed by the Mice sector by 2040. &ldquo The performance of Suntec Convention is expected to be stronger with the composition of event types likely to remain largely unchanged,&rdquo Lock said. In FY2025, Suntec Convention hosted more than 1,100 conferences and corporate events, up 15 per cent from the previous year. It contributed about 6.1 per cent of the trust&rsquo s total net property income at S$19.4 million, up from S$17.4 million in FY2024. This brought gross revenue to S$471.6 million, 1.7 per cent higher than FY2024&rsquo s S$463.6 million. Distributable income rose 14.6 per cent year on year to S$207.3 million in FY2025, supported by higher dividend contributions from Suntec Singapore Convention and Exhibition Centre (which includes 42,000 sq m of Mice space and 144,000 sq ft of retail space). Distribution per unit rose 13.6 per cent to S$0.07035 for the year, from S$0.06192 a year prior. The manager attributed the growth in its event business to ongoing enhancements to its convention offerings in FY2025, allowing it to keep up with the varied demands for event organisers and attract events. Beyond its convention segment, the manager is upbeat on the rest of its portfolio. At Suntec City Mall, tenant churn is expected as weaker operators exit, creating opportunities to bring in new concepts, it said. Committed occupancy is projected to remain high, alongside positive rental reversion of close to 10 per cent. Meanwhile, the Singapore office portfolio remains resilient, with rental reversion of 9.6 per cent recorded in 2025. This is expected to continue into 2026 thanks to &ldquo limited new supply and tight vacancies&rdquo , Lock added. |
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