Suntec Reit’s office portfolio to slow down due to tech sector’s problems: RHB
RHB sees moderating rent growth and an uptick in vacancy.
With the technology sector experiencing layoffs, Suntec Reit’s office portfolio will struggle with rent growth and increasing occupancy rate.
RHB said this as it downgrades to neutral the stock from buy. The target price for the Reit is at $1.47 from 1.70.
“This, coupled with the sharp interest cost impact from a spike in rates, should weigh on its share price,” said RHB.
Under Suntec’s portfolio, the technology sector is the largest occupier of Suntec City Office Towers and is a key source of new leasing demand in recent years.