Suntec REIT DPU rises 15.8% YoY in H1

Its distributable income from operations increased by 7.1% You to $126.6m.

Sunctec REIT posted a 15.8% year-on-year growth in distribution per unit in the first half of 2022, due to the higher distributable income from operations and capital distribution.

In a statement, Suntec said its distributable income from operations rose 7.1% YoY $126.6m, whilst its capital distribution was at $11.5m. 

It traced the rise in distributable income from operations mainly from the contributions from The Minster Building and Nova Properties in London, and Suntec City. However, this was partially offset by higher financing costs for acquisitions and higher interest rates.

Manager CEO Chong Kee Hiong said they continue to observe good recovery in Suntec City Mall and Suntec Convention, noting that both malls saw strong growth in mall trafficking and tenant sales in April, following the easing of safe management measures.

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Tenant sales exceeded pre-pandemic levels for three straight months from April to June, he said.

Meanwhile, the office portfolio in Singapore, Australia and the UK “remained resilient,” he said, adding that the Singapore office portfolio achieved positive reversions for 16 quarters.

According to Sintec, revenue contribution from the Singapore Office portfolio is expected “to remain strong, driven by tight vacancy and limited supply despite global headwinds weighing on economic growth.”

Robust occupancy and healthy positive rent reversion for the Singapore Office portfolio will be supported by the continual demand from Technology, Media and Telecommunications, and Financial Services sectors.

“Suntec REIT unitholders will continue to benefit from our diversified portfolio of good quality assets. In particular, income stability of our office assets in Singapore, Australia and the United Kingdom and the recovery of the retail and Convention businesses will further strengthen the overall resilience of our portfolio,” Chong said, adding that the Manager will continue to strengthen the balance sheet through active capital management.