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