- 1H25 Suntec REIT's DPU rose 3.7% y-o-y to 3.155 cents, underpinned by S$6mil in finance cost savings. The result was in line with our expectations, accounting for 51% of our FY25e forecast.
- - Read this at SGinvestors.io -
- Overseas markets remain a drag, with occupancy rates declining in both the UK (-0.5ppts y-o-y) and Australia (-3.3ppts y-o-y), though they contribute only 30% of group income. NPI from Australia rose 14.6% y-o-y in S$ terms, driven by a one-off AU$10mil compensation at 177 Pacific Highway. However, the impact on the bottom line is minimal as most of the proceeds will be allocated to fund CAPEX.
- Transaction activity for Suntec office remains muted as most potential buyers are owner-occupiers, and Suntec maintains a high occupancy rate of 99%.
The Positives
Strong Singapore performance.
- - Read this at SGinvestors.io -
- Suntec REIT remains confident of achieving retail rental reversions of 10– 15% in FY25e, supported by healthy footfall driven by the F&B segment. Management continues to observe signs of shopper downtrading, with fast-food tenants outperforming.
- Tenant rebalancing is in place to replace lower-margin fashion retailers with higher-margin principal operators.
Improved Suntec Convention margin.
- Read more at SGinvestors.io.
