Rising rents to boost Suntec Reit’s office, retail assets: Maybank
The firm’s distribution per unit went up 15% in the second quarter of 2022.
An increase in rents will fuel the fundamentals of Suntec Reit’s office and retail assets amidst the improvement in occupancy and demand recovery, said Maybank.
In its report, Suntec’s distribution per unit (DPU) in the second quarter (Q2) of 2022 rose 15% year-on-year (YoY) and 1% quarter-on-quarter (QoQ) due to improvement at Suntec City and contribution from London properties.
With this, Maybank increased its DPU forecasts for Suntec by 1% to 2% due to a revival of stronger rent.
Suntec City mall’s performance improved in Q2 2022 with “revenue posting at +30% YoY/+1% QoQ and NPI at +51% YoY/-1% QoQ, underpinned by higher occupancy of 96.1% (vs 96.0% in 1Q22 and 93.9% in 2Q21) and new tenants (31% in 1H22, vs 48% in 1Q22).”