Suntec REIT - OCBC Investment 2023-10-23: Continued Divergence Between Operational & DPU Performance

Suntec REIT - Continued Divergence Between Operational & DPU Performance

Suntec REIT (SGX:T82U) | SGinvestors.ioSuntec REIT (SGX:T82U)
  • Suntec REIT (SGX:T82U)’s 3Q23 business update reflected another quarter of divergence between its robust operational performance and weak DPU trend due to continued pressure from higher financing costs.

3Q23 DPU fell 14.0% y-o-y but met our expectations

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  • These factors, coupled with an increase in financing costs of S$14.3m, led to 3Q23 DPU falling 14.0% y-o-y to 1.793 Singapore cents. This was in-line with our expectations as 3Q23 DPU accounted for 25.6% of our FY23 forecast (9M23 DPU of 5.269 Singapore cents accounted for 75.2% of our forecast).

Continued robust rental reversions in Singapore and Australia

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  • In Australia, positive rental reversions of 12.0% were recorded. However, we believe the market rental outlook has softened for both the Singapore and Australia office sectors, and Suntec REIT highlighted that incentive levels in Melbourne and Adelaide are on an uptrend.

Mixed on occupancy

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Above is the excerpt from report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full report in PDF @

OCBC Research Team OCBC Investment Research | 2023-10-23

Previous report by OCBC:
2023-07-27 Suntec REIT - More Needs To Be Done.

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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