Suntec REIT posts 1Q22 net property income rose 25 percent

Suntec City mall in SingaporeSuntec City mall in Singapore; photo taken pre-Covid

Suntec REIT reported Tuesday its first quarter net property income rose 24.9 percent on-year to S$74.3 million on new contributions from the Minster Building and higher contributions from Suntec City Mall, Suntec Convention and 21 Harris Street.

In June 2021, Suntec REIT said it would acquire The Minster Building, a London office building with ancillary retail space for GBP353 million.

The increase was offset by lower occupancy at the 177 Pacific Highway property and a weaker Australian dollar, Suntec REIT said.

Gross revenue for the January-to-March quarter increased 13.9 percent on-year to S$99.2 million, the REIT said in a filing to SGX.

The distribution per unit (DPU) for the first quarter was 2.391 Singapore cents, up 16.9 percent from 2.045 Singapore cents in the year-ago quarter, the REIT said.

“The office portfolio in Singapore, Australia and United Kingdom remained resilient, with the Singapore office portfolio achieving positive rent reversion for 15 quarters,” Chong Kee Hiong, CEO of the REIT’s manager, said in the statement.

“We are now more optimistic about the continued recovery of the retail and convention businesses compared to a year ago,” Chong said.

He noted that Suntec City Mall’s occupancy improved to 96 percent as more food and beverage and activity-based tenants were introduced.

In its outlook, the REIT noted Suntec City Mall and Suntec Convention would benefit from the Singapore government’s easing of Covid-related restrictions.

Read more details of Suntec REIT’s results.