Suntec REIT net property income rises 23.9% to $112.6m

It owed its performance to its office portfolio in Singapore, Australia, and the United Kingdom.

Suntec REIT’s net property income rose to 23.9% to $112.6m for the first half of 2021.

This led to an amount available for distribution at $118.2m, a 27.3% increase from the $92.817m recorded for the same period last year.

Its performance was driven by the resilience of its office portfolio in Singapore, Australia, and the United Kingdom, it said in a bourse disclosure.

“On the retail front, while we saw the steady recovery of mall traffic and tenant sales in Suntec City over January to April, Heightened Alert measures hampered recovery in May and June. However, our efforts in strengthening the mall with strong brands and concepts have helped to cushion the impact on retail revenue with tenant sales being less affected than footfall,” said Suntec REIT CEO Chong Kee Hiong.

It expects its Singapore office portfolio to stay positive within the year, with a mid-90% occupancy. Suntec REIT also believes that occupancy in Suntec City Mall will increase to around 95% by year-end.

Vaccination of all staff of Suntec Convention will be completed by September, which would allow the company to host events for fully vaccinated participants in the future.

It expects revenue from its Australia portfolio to remain resilient, whilst rents in its UK properties continue to be adversely impacted by the pandemic.