- 1Q26 Suntec REIT's DPU of 1.936 Singapore cents rose 23.9% y-o-y, in line with our expectations and forming 25.5% of our FY26e forecast. The growth was driven by a S$5.8mil drop in finance costs, stronger performance in Singapore office and retail, and a S$2mil lower withholding tax provision after retaining Australia Managed Investment Trust (MIT) status.
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The Positives
Singapore operations remained robust.
- Office occupancy rose 0.6 ppt q-o-q to 98.8%, alongside strong +9.5% rental reversion, led by +13.2% at ORQ and MBFC Towers 1 & 2. We expect office rental reversions of +5% in FY26e, with occupancy staying high amid limited core CBD supply and tight market vacancies.
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The Negative
Overseas portfolio remains a drag, but stable q-o-q.
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