For 1QFY2026 ended March 31, Suntec REIT’s (SGX:T82U
) distribution income (DI) was up by 24.8% higher y-o-y to $57.3 million while DPU jumped by 23.9% y-o-y to 1.936 cents across the same period.
The improvement was driven by stronger operational performance of its Singapore office and retail portfolio, lower financing costs and lower Australia withholding tax provision as it managed to retained its Australia Managed Investment Trust status.
Gross revenue and net property income was up by 1.9% and 0.3% y-o-y to $115.6 million and $77.3 million respectively.
Apart from the stronger operational performance at its Singapore office and retail portfolio, higher contribution from 55 Currie Street located at Adelaide, Australia contributed to the growth as well.
However, it was partially offset by lower contribution from Suntec Convention due to absence of large-scale conferences.
Joint venture (JV) income increased by 9.0% y-o-y to $27.8 million given the stronger operating performance from MBFC Properties and One Raffles Quay.
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Committed occupancy rate for its Singapore office portfolio improved slightly to 98.8% while the figure for its retail portfolio saw an increase of 0.8 percentage points to 99% in 1QFY2026.
Meanwhile, rental reversion for its Singapore office portfolio was 9.5% while the retail portfolio saw a much higher figure of 14.3%.
Over at Australia, its committed occupancy rate was down marginally to 90.7%, compared against 90.9% a year earlier. While the rest of the Australia properties has a committed occupancy rate of above 90%, both Southgate Complex and 55 Currie Street stood at just 87.2% and 79.5% respectively.
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For its UK portfolio, committed occupancy rate was down to 92.5%, compared to 95.3% back in 1QFY2025. The lower figure was a result of lower committed occupancy rate seen at The Minister Building, which stood at just 85.4%.
On the capital management front, as at March 31, Suntec REIT’s aggregate average was up by 0.1 percentage point to 41.6% while weighted average debt to maturity stood at 2.44 years.
All-in financing costs improved to 3.56% per annum as at March 31 with approximately 65% of the REIT’s borrowings on fixed rate. Interest coverage ratio improved slightly to 2.2 times.
“The results reflect Suntec REIT’s sound fundamentals, underpinned by our diversified portfolio of high-quality assets and resilient income streams. We remain focused on pro-active capital and portfolio management to deliver long term value and sustainable growth to unitholders,” says Chong Kee Hiong, CEO of the manager.
Units of Suntec REIT closed 1 cent lower, or 0.67% down at $1.49 on April 23.
