Suntec City Office generated NPI growth of 1.8% y-o-y and achieved positive rental reversion of 13.4% in 2H23. Revenue and NPI from Suntec Convention increased 41% and 39% y-o-y respectively in 2H23 due to the earlier-than-expected recovery of MICE events to pre-pandemic levels.
We did not factor in any capital distribution from past divestment gains in 2024. Suntec REIT's 2024 distribution yield is fair at 5.6%, although P/NAV of 0.57x is attractive.
Suntec REIT's 2H23 Results
- Read this at SGinvestors.io -
Singapore office: Maintaining steady growth.
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Suntec REIT will enhance One Raffles Quay by refurbishing the main office lobbies and adding F&B units at the Garden Plaza and North Tower. It will benefit from 22 consecutive quarters of positive rental reversion. Management expects high single-digit rental reversion in 2024.
Singapore retail: Temporary dip in occupancy.
Read more at SGinvestors.io.
Above is an excerpt from a report by UOB Kay Hian Research. Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.
