There was also a bump in dividends received from its convention business in 4Q25 as the dividend payout for the first nine months of FY25 was conservative.
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Decent rental reversion guidance for its Singapore retail and office operations in FY26.
Operationally, Suntec REIT’s office portfolio committed occupancy declined slightly by 0.3ppt q-o-q to 98.2% in Singapore, while rental reversions accelerated to 9.6% due largely to its One Raffles Quay and MBFC Towers 1 & 2 properties. While these figures underscore the resilient demand for quality office space in prime locations, management guided for rental reversions to moderate to around 5% in FY26. In Australia, Suntec REIT’s net effective rents rose 1% despite elevated incentive levels, while occupancy improved 3.3ppt q-o-q to 90.6%. Suntec REIT’s UK portfolio was stable, as occupancy remained flat sequentially at 92.5%.
Moving on to retail, Suntec REIT registered near full occupancy of 99.5% in Singapore, while rental reversion came in strong at 16.2% for the whole of FY25 at Suntec City Mall, boosted by an acceleration in 4Q25 to +19.1%. This is expected to ease ahead, with guidance of ~10% for FY26.
Meanwhile, Suntec REIT is hoping to sustain the dividends received from its convention business in FY26.
Aggregate leverage ratio increased 0.5ppt q-o-q to 41.5% but at a manageable level.
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Above is an excerpt from a report by OCBC Group Research. Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.
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