Suntec Reit posts 3.7% rise in H1 DPU to S$0.03155

[SINGAPORE] The manager of Suntec Real Estate Investment Trust (Reit) on Thursday (Jul 24) posted a distribution per unit (DPU) of S$0.03155 for the first half ended June, up 3.7 per cent from S$0.03042 in the previous corresponding period.

The distribution for H1 will be paid on Aug 29, after the record date on Aug 1.

Distributable income rose 4.6 per cent to S$92.8 million for H1, from S$88.7 million in the same period the year before.

The increase in DPU and distributable income came on the back of strong operating performance of Suntec Reit’s Singapore portfolio and lower financing cost, which fell to S$81.9 million in H1, from S$88.4 million in the year-ago period.

Gross revenue was up 3.3 per cent to S$234.5 million for the half-year period, from S$226.9 million in the same period the year before. Net property income (NPI) grew 5.6 per cent to S$159.5 million for the half-year period, from S$151 million in the year before.

The increase in its top line and NPI came amid a one-off compensation from a Sydney commercial building, as well as stronger operating performance in Singapore.

Chong Kee Hiong, chief executive officer of the manager, said: “The Singapore office, retail and convention portfolios continued to deliver strong operating performances.”

Suntec City’s revenue rose 1.9 per cent on the year to S$133.2 million, mainly due to higher retail and office revenue generated by higher rent.

Suntec Singapore’s revenue contribution of S$39.9 million in H1 FY2025 comprised S$29 million from its convention segment and S$10.9 million from its retail segment.

Convention revenue grew by S$800,000, driven by the increased number of large and mid-scale events and conferences in the recorded period. NPI of its convention segment rose 64.4 per cent on year due to higher-yielding events and lower utility rates secured, said the manager.

On the other hand, Suntec Singapore’s retail revenue remained stable.

Gains in overall revenue and NPI were, however, offset by lower occupancy at one of the Reit’s Adelaide properties, and lower contribution from The Minister Building, a corporate office in London, said the manager.

Looking ahead, the manager expects cautious demand for office spaces in light of global headwinds and slower economic growth. However, the limited new supply and Singapore’s reputation as an attractive business hub will continue to support core Central Business District rent growth, the manager added.

It also noted that retail sales are expected to remain under pressure as consumers tighten their purse strings. But the manager expects performance of its convention segment to be stable, with the trust focusing on higher-yielding and public-sector events.

Units of Suntec Reit closed Thursday 0.9 per cent or S$0.01 higher at S$1.18, before the results were announced.