Suntec REIT (SGX:T82U)'s FY25 revenues and NPI grew a modest ~1.7% and ~1.9% y-o-y respectively. Contribution from Singapore improved on stronger performance across office, retail and convention assets, while the Australia portfolio benefited from a one-off compensation at 177 Pacific Highway but was partly offset by lower contribution from The Minster Building in the UK.
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FY25 DPU increased ~13.6% y-o-y to 7.035 cents.
Suntec REIT's DPU increased on a full-year basis to 7.035 cents (+13.6% y-o-y), mainly due to higher revenues from its Singapore portfolio and lower financing costs. Net financing costs saw a sharp decline of ~13.2% on the back of interest rate savings.
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Singapore retail portfolio close to full occupancy.
Portfolio occupancy remained high in Singapore, with office committed occupancy at 98.2% (FY24: 98.7%) and retail at 99.5% (FY24: 98.3%), while overseas occupancy was softer at 90.6% in Australia (FY24: 90.9%) and 92.5% in the UK (FY24: 95.1%).
Within Singapore office, Suntec City Office was near fully occupied at 99.8%, while One Raffles Quay and MBFC Towers 1 and 2 stood at 97.1% and 95.4% respectively. With the lack of new supply in Singapore’s core CBD, Suntec REIT is in no hurry to backfill vacancies in the Marina Bay assets and is holding out for higher rents. Singapore retail was similarly tight, with Suntec City Mall and Marina Bay Link Mall at 99.5% and 98.9% respectively.
In Australia, portfolio occupancy was dragged by 55 Currie Street at 66.0% and Southgate Complex at 86.8% despite full occupancy at 177 Pacific Highway (returned space has been backfilled and lease commencements are spread out across 4Q25 and 1Q26) and 477 Collins Street.
Double-digits positive rental reversions for Singapore assets.
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Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
