Suntec REIT’s distributable income drops 26.8% YoY to $50.3m in 1Q23

Given the drop, it recorded a 27.4% YoY lower DPU to unitholders.

Suntec REIT posted a 26.8% YoY lower distributable income of $50.3m for the period of 1 January to 31 March (1Q23), data from its latest business update showed.

With a lower distributable income, the REIT also recorded a 27.4% YoY lower distribution per unit (DPU) to unitholders of $0.01737.

In a bourse filing, the REIT attributed the decline in distributable income to higher financing costs and a weaker Australian dollar and Pound Sterling against the Singapore dollar.

“Looking forward, our operating performance is expected to continue to improve but the interest rate and energy cost are likely to remain high which will impact our distribution for the year,” Chong Kee Hiong, CEO of the REIT’s manager, said.

“To cushion the impact, we will continue with the distribution of the remaining capital top-up for 2023 to provide some support to unitholders in these tough times. We are also actively looking at the potential divestment of our mature assets to unlock value and improve our balance sheet,” Chong added.