- Suntec REIT (SGX:T82U)’s headline numbers were notably stronger y-o-y. Distributable income rose to S$57.3mil and DPU to 1.936 cents (23.9% increase y-o-y), with management pointing to stronger Singapore office and retail performance, S$5.8mil of lower financing cost, and the absence of the S$2.0mil Australia withholding tax drag booked in 1QFY25.
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Operationally, the quarter again highlighted the split in portfolio performance.
- Singapore remained the earnings anchor, with office occupancy at 98.8% and retail at 99.0%, while office and retail rental reversions came in at +9.5% and +14.3% respectively at the portfolio level.
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- The UK was the weakest pocket, with overall occupancy falling to 92.5% from 95.3% a year ago, reflecting vacancies at The Minster Building.
- Aggregate leverage was stable at 41.6% versus 41.5% at end-2025. The all-in financing cost improved ~15bps q-o-q to 3.56%, ICR rose to 2.2x from 2.1x, and about 65% of debt remained fixed.
Our views.
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