Suntec REIT DPU Rises for 1Q2016

On 21st April 2016, Suntec REIT announces its financial results for 1Q 2016. Distribution Per Unit (“DPU”) rises 6.3% to 2.37 cents as compared to 2.23 cents in 1Q2015.

Gross revenue increases to S$78.3 million in 1Q2016 as compared to S$74.5 million in 1Q2015. Net property income also increases to S$54 million as compared to S$51.4 million in 1Q2015. The increase in gross revenue and net property income was attributed to the opening of Suntec City Phase 3 which resulted in higher contribution from Suntec City Office and Suntec Singapore.

With the completion of Phase 3 in June 2015, this marks the end of the Asset Enhancement Initiative (“AEI”).

1Q2016
(S$mil)
1Q2015
(S$mil)
YoY(%)
Gross Revenue 78.3 74.5 5.2
Net Property Income 54.0 51.4 5.1
Distributable Amount 60.0 56.0 7.2
Distribution Per Unit (“DPU”) (cents) 2.371 2.230 6.3

Occupancy

Office occupancy stood at 98.3%.

Retail occupancy stood at 98.6%.

Debt

As of 31st March 2016, the total debt outstanding is S$3.046 billion. Debt to asset ratio stood at 34.7%. The average term to expiry is 2.67 years.

Net Asset Value

Suntec REIT has a Net Asset Value (“NAV”) of S$2.114.

Lease Expiry

6.0% of the office leases are expiring in FY2016. 23.1% of the retail leases are expiring in FY2016.

Things to Note

Target completion of office and retail asset in Australia, 177 Pacific Highway, Sydney in 2nd half of 2016.

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