Suntec REIT - RHB Invest 2023-01-25: Strong Finish To FY22, Outlook Is Challenging

Suntec REIT - Strong Finish To FY22, Outlook Is Challenging

Published:
SUNTEC REAL ESTATE INV TRUST (SGX:T82U) | SGinvestors.ioSUNTEC REAL ESTATE INV TRUST (SGX:T82U)
  • Suntec REIT (SGX:T82U)'s 4Q22 DPU was in line, but operational performances surprised on the upside on strong rent reversions and occupancy boosts. Market concerns over asset value declines and potential gearing breaches proved unfounded, as Singaporean asset values rose – more than offsetting overseas weaknesses – but the outlook is moderated by a mix of slowing demand, cost pressures, and steep interest cost rises.
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Suntec REIT's operational numbers surprised on the upside

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  • Australian assets saw sharp 2.4ppts q-o-q improvements in occupancy while high UK occupancy was maintained. 4Q22 rent reversions for Singapore offices improved to 7.7% while Australia saw a strong 24% rent growth in FY22.
  • Despite high tech tenant concentration in its office portfolio (~26%) management expects occupancy and office rent reversions to stay positive. 4Q22 retail occupancy rose 1.5ppts q-o-q with a healthy 10.6% rent reversion. The convention segment rebounded strongly with a 275% revenue increase in 2H.

Asset values held firm.

  • Read more at SGinvestors.io.





Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2023-01-25



Read also RHB's most recent report:
2024-04-01 Suntec REIT - Can Internalisation Unlock Value?.

Previous report by RHB:
2024-01-25 Suntec REIT - Operational Strength To Continue; Upgrade To BUY.

Price targets by 5 other brokers at Suntec REIT Target Prices.

Listing of research reports at Suntec REIT Analyst Reports.

Relevant links:
Suntec REIT Share Price History,
Suntec REIT Announcements,
Suntec REIT Dividends & Corporate Actions,
Suntec REIT News Articles





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