- Suntec REIT (SGX:T82U) reported a 9.6%/2.7% y-o-y increase in revenue and NPI to S$108.7m/S$76.3m in 1Q23, respectively, underpinned by better Suntec office, mall and convention income, though partly offset by weaker A$ and £. Distribution to unitholders (including S$5.8m of capital distribution) was down 26.8% y-o-y to S$50.3m on higher financing cost and lower JV income. 1Q23 DPU came in at S$0.01737, -27.4% y-o-y.
- - Read this at SGinvestors.io -
- Suntec REIT’s gearing increased slightly q-o-q to 42.8% while adjusted ICR weakened further to 2.2x as average funding cost increased 74 bp q-o-q to 2.68%. SUN has hedged ~72% of its funding cost into fixed rates in 1Q23. It is actively looking to divest mature assets, especially in Australia, to unlock value and improve its balance sheet.
- - Read this at SGinvestors.io -
- Australia office contributions were 8.7% lower y-o-y due to weaker A$ and higher interest expense at Southgate Complex. Despite achieving positive rent of 17.9% in 1Q23, management indicated that revenue would likely be impacted by leasing downtime and incentives in the near term.
- UK office contributions down 15.4% y-o-y due to weaker £ as well as higher bad debt provision on a change in accounting policy at Nova Properties.
- Read more at SGinvestors.io.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
LOCK Mun Yee CGS-CIMB Research | Natalie ONG CGS-CIMB Research | https://www.cgs-cimb.com 2023-04-26
Read also CGS-CIMB's most recent report:
2024-01-24 Suntec REIT - Continue To Focus On Capital Management.
Previous report by CGS-CIMB:
2023-10-23 Suntec REIT - Focusing On Capital Management.
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 Dividend Payout Dates & Corporate Actions,
Suntec REIT News
