- Suntec REIT’s 1Q25 gross revenue and net property income (NPI) rose 3.4% and 5.0% y-o-y to S$113.5m and S$77.1m respectively. This was driven largely by improved performance for its Singapore properties.
1Q25 DPU increased 3.4% y-o-y to 1.563 cents and met our expectations.
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- Results were in-line with our expectations as 1Q25 DPU formed 24.9% of our FY25 forecast.
Operating metrics largely still healthy.
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- Rent reversions were +8.0% in Singapore, with Suntec City Office’s +5.5% rental uplift coming in lower than that of One Raffles Quay and MBFC Towers 1 & 2 combined (+10.3%). This is expected to ease, as management reiterated its guidance for more modest rent reversions between 1% and 5% in FY25. While office tenants have not indicated intentions to downsize, there is generally a more cautious mood and this could delay decision making on signings. Rent reversions also moderated for its retail portfolio, as this came in at 10.4% for Suntec City Mall, versus 23.2% achieved in FY24.
- Its Singapore retail portfolio committed occupancy was fairly stable at 98.2%, which was just a tad below the preceding quarter’s 98.3%. However, shopper traffic and tenant sales on a per square foot basis both fell 3% y-o-y.
- Suntec REIT expects retail sales to remain subdued given cautious consumer spending. Committed occupancy is expected to stay above 95% and rent reversion should see modest increases of around 5-10%.
Aggregate leverage ratio still relatively high at 43.4% but proportion of borrowings hedged increased to 65%.
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