Suntec REIT has announced a 4.6% year-on-year increase in its distributable income for the first half of 2025, reaching S$92.8 million. This growth translates to a distribution per unit (DPU) of 3.155 Singapore cents, marking a 3.7% rise from the previous year. The improvement is attributed to robust performance in its Singapore portfolio and reduced financing costs, although it was partially offset by higher withholding tax provisions in Australia following the loss of Managed Investment Trust status, according to a CGS International report.
The Singapore office segment showed strong results, with a committed occupancy rate of 99% by the end of the first half. Suntec Office experienced a 6.9% rental reversion, whilst Marina Bay Financial Centre Towers 1 and 2, along with One Raffles Quay, saw a 13% increase. Despite macroeconomic uncertainties, Suntec REIT expects rental reversion for the full year to remain consistent with the first half’s levels.
Suntec Mall maintained a high occupancy rate of 98%, with an impressive 18% rent reversion. However, both shopper traffic and tenant sales saw a slight decline of 2% year-on-year. The Suntec Convention Centre reported a 64.4% increase in net property income, driven by a rise in large- and mid-scale events.
Despite the positive results, Suntec REIT maintains a “Hold” rating due to challenges in the Australian and UK office markets, which may hinder vacancy improvements. The target price remains unchanged at S$1.26, with potential risks including interest rate hikes and a prolonged weak macroeconomic outlook.
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