Suntec REIT DPU for the second quarter drops 15%

Reversionary rent for its office portfolio was down 2.8% from the last quarter due to tenants taking larger spaces which would command lower rates.

A Phillip Securities Research report showed Suntec REIT posting 2Q10 revenue of $62.9 million (-3.3% y-y, -0.1% q-q), net property income of $47.4 million (-2.8% y-y, -0.8% q-q) and distributable income of $45.9 million (-3.7% y-y, +1.2% q-q). DPU for the second quarter of 2010 was 2.528 cents (-15.1% y-y, +0.6% q-q).

Despite the fall in DPU, Phillip Securities Research noted 2Q10 results were pretty much stable from a quarter ago. The report said, “There were slight improvements in occupancy rates for both the office and retail portfolio. Management shared that it was the practice to negotiate on renewal of leases 6-9 months ahead of expiry and they are now working on FY2011 leases."

Suntec REIT's office portfolio has 97.6% occupancy while the retail portfolio has 98.7% occupancy.

Phillip Securities Research meanwhile is holding its forecasts and projections and maintains the Hold recommendation with fair value of $1.34. “We think management has done a good job in maintaining occupancy for the retail portfolio and improving the occupancy for the office portfolio. Note that office portfolio occupancy improved from 94.8% in 2Q09. Although reversionary rents probably softened in the wake of this, nonetheless leases were secured and mitigated the risk of tenants migration.”

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia