Suntec REIT - OCBC Investment Research 2025-02-11: Negative Tax Impact

• Suntec REIT announced on 10 Feb 2025 that two of its unitholders Gordon Tang and Celine Tang now hold 13.55% and 13.65% of the units outstanding, respectively.
• - Read this at SGinvestors.io -

Loss of Australian MIT status which will result in a higher effective Australian tax rate of ~30% from 10% previously.

• Given that this has been breached, Suntec REIT will no longer be able to enjoy a concessionary withholding tax rate of 10% and its distributions from Australia must now be subject to an effective Australian tax rate of 30%. This will not affect its recently declared 2H24 DPU. However, its FY25 DPU is expected to be negatively impacted as the 10% foreign resident individual test must be satisfied for the entire year.
• - Read this at SGinvestors.io -

Recent 2H24 DPU dipped 13.9% y-o-y to 3.15 Singapore cents.

• Read more at SGinvestors.io.

Above is an excerpt from a report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.

Previous report by OCBC:
2024-10-28 Suntec REIT - Balance Sheet Metrics Unlikely To Improve In Near Term.

Price targets by 3 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 Dividend Payout Dates & Corporate Actions,
Suntec REIT News