Suntec REIT - OCBC Investment 2024-07-26: Trudging Along

• Suntec REIT (SGX:T82U)’s 1H24 results were slightly below our expectations. Gross revenue increased 1.2% y-o-y to S$226.9m but net property income (NPI) fell 1.5% y-o-y to S$151.0m as better operating performance in Singapore was offset by lower contributions from 55 Currie Street and 177 Pacific Highway in Australia and The Minster Building in the UK.

1H24 DPU fell 12.5% y-o-y, but was only down 1.2% y-o-y if we exclude capital distributions

• - Read this at SGinvestors.io -

Rental reversions remained solid albeit at a moderated pace for its Singapore retail and office operations in 2Q24

• - Read this at SGinvestors.io -
• There was also some moderation in the mall’s tenants’ sales, which grew 1% y-o-y on a per square foot basis in 1H24, versus +5% in 1Q24 (Apr and May recorded y-o-y declines). This was despite the 6% y-o-y increase in the mall’s average daily traffic during the same period.

Negative rental reversions at Australia on a net basis

• Read more at SGinvestors.io.

OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2024-07-26 SGinvestors.io

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