Suntec REIT's distributable income rises 3.4% YoY to $255.5m in FY22

The increase also pushed distribution per unit up to $0.08884.

Suntec REIT reported a distributable income of $255.5m in FY22 which was 3.4% higher compared to FY21.

Given the increase, the REIT's distribution per unit to unitholders also rose by 2.5% YoY to $0.08884.

In a bourse filing, the REIT attributed the increase in DPU to a "capital distribution of $23.0m, with improvement in distributable income from better operating performance being eroded by higher financing costs."

The REIT added that in the second half of the financial year, its Singapore and United Kingdom portfolios remained resilient. 

Contribution from its Australia portfolio, however,  was lower year-on-year "due to leasing downtime and absence of surrender fee received in H221."

"2H 22 DPU of 4.074 cents was weighed down by a sharp increase in financing costs," the REIT added.

Looking ahead, the REIT expects the revenue of its  Singapore Office Portfolio to strengthen on the back of past quarters of positive rent reversion.