Suntec REIT - RHB Invest 2024-01-25: Operational Strength To Continue; Upgrade To BUY

Suntec REIT - Operational Strength To Continue; Upgrade To BUY

Suntec REIT (SGX:T82U) | SGinvestors.ioSuntec REIT (SGX:T82U)
  • Upgrade Suntec REIT (SGX:T82U) to BUY from Neutral, with new S$1.35 target price from S$1.20, 10% upside and ~5% yield. Suntec REIT’s 4Q23 results came in slightly better than expected, backed by strong Singapore operational performance.
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FY23 DPU declined 20% y-o-y

  • Suntec REIT's FY23 DPU declined 20% y-o-y as higher income from Singapore assets was offset by higher financing and operational costs as well as weaker overseas performance. Final DPU includes a capital top-up of S$23m from past divestment gains from Park Mall, and with the entire amount now distributed, no capital top-up is expected in FY24F.

Portfolio value rose 0.7% y-o-y

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  • Financing costs rose 90bps y-o-y to 3.84% in FY23 and we expect this to peak this year at ~4.1% in FY24F and fall slightly in FY25F.

Singapore office portfolio continued to shine

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Vijay Natarajan RHB Securities Research | 2024-01-25

Previous report by RHB:
2023-10-24 Suntec REIT - Lacking Catalysts.

Price targets by 4 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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