- 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.
- - Read this at SGinvestors.io -
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
- - Read this at SGinvestors.io -
- 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
- Read more at SGinvestors.io.
