1Q26 Suntec REIT's DPU rose 23.9% y-o-y to S$1.936 cents, driven by stronger Singapore performance, alongside lower financing cost and a reduced Australia withholding tax provision.
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Gearing remained stable, while the cost of debt continued to trend lower.
Singapore remains robust while overseas a drag
1Q26 Suntec REIT's distributable income and DPU rose 24.8% and 23.9% y-o-y to S$57.3m and S$1.936c, respectively, driven by strong Singapore office rental reversions of 9.5% and retail at 14.3%. Overseas performance remained a drag, with occupancy in Australia and the UK continuing to soften, down 0.2ppt and 2.8ppts, respectively.
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Convention centre NPI declined 44.4% y-o-y to S$2m due to the absence of large-scale conferences compared to 1Q25. However, Suntec REIT did not observe event cancellations due to the Middle East conflict and expects some traffic to be redirected to Singapore, with full-year performance likely to be in line with FY25.
The strategic review for Suntec REIT is ongoing, with more clarity expected towards year-end. In the meantime, Suntec REIT continues to prioritise the divestment of its Australia assets and Suntec strata offices.
Cost of debt falls
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Above is an excerpt from a report by Maybank Research. Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.
