Suntec REIT Q1 net property income up 1.9% to $62.99m

It was boosted by higher revenue from Suntec Singapore and Suntec City Mall.

Suntec REIT's Q2 net property income (NPI) grew 1.9% YoY to $62.99m, whilst its gross revenue rose 2.6% YoY to $90.7m. OCBC Investment Research analyst Andy Wong Teck Ching said, “Growth was underpinned by higher revenue from Suntec Singapore and an increase in retail revenue from Suntec City mall, but partially offset by weaker office revenue.”

Distribution per unit (DPU) was flat (+0.3% YoY) at 2.43 cents but was once again boosted by a higher distribution from capital of $6.5m (1Q2017: $3m).

Overall portfolio occupancy was firm for its office (99.1%) and retail (98.4%) segments. Average rents of $9.02 psf/month and $8.95 psf/month were secured for its Singapore office portfolio and Suntec City office, respectively.

Wong noted that this was a robust 6.1% and 11.5% QoQ increase, respectively, reversing two consecutive quarters of decline.

“On the retail front, operating metrics for Suntec City Mall were also bright,” Wong added. Footfall rose 12.7% YoY and tenants’ sales psf improved 5.2% YoY.