Suntec Real Estate Investment Trust : REIT’s FY 21 Distribution Per Unit Increased 17.1% Year-On-Year
Trustee (Suntec) Limited
January 26, 2022
The Suntec REIT’s FY21 payout per share increased 17.1% YoY
Driven by recent acquisitions and strong operational performance
Singapore, January 26, 2022 – Suntec REIT reported a distribution per unit (“DPU”) of 8.666 cents for the period January 1 – December 31, 2021 (“FY 21”), which was 17.1% higher than the fiscal year ended December 31, 2020 (“FY20”) .
For the period July 1 to December 31, 2021 (“2H 21”), the DPU was 4.512 cents, up 9.8% from the six year ended December 31, 2020 (“2H 20”). The increase in DPU was a result of higher distribution income from operations of S$129.0 million, an increase of 21.6% over the prior year. This strong performance was mainly due to contributions from the two newly acquired properties in London and higher income from Suntec City Mall. The office portfolio in Singapore, Australia and the UK remained resilient, providing income stability for shareholders.
Mr. Chong Kee Hiong, Chief Executive Officer of the Manager, said: “We are pleased to have implemented our active portfolio management strategy. Diversifying into the UK has strengthened the REIT’s revenue stream and enhanced shareholder value.”
Mr. Chong added, “The retail business recovery at Suntec City Mall was encouraging. Although the mall’s return was slowed by work-from-home and other safe management measures, tenant sales had recovered much faster, with December 21 tenant sales exceeding December 19. Occupancy has also improved to 95% as more F&B and activity-based renters are rolled out to retain and attract buyers.”
outlook
Office portfolio Singapore
The business outlook is expected to improve along with the economic recovery, with demand being mainly driven by the technology and financial services sectors. The revenue contribution of the Singapore office portfolio is expected to increase, driven by cumulative positive rent paybacks achieved over the past 14 quarters and the full impact of lease revenue commitments in 2021. However , high maturity rents across the portfolio can lead to weak positive rent return .
Suntec City shopping mall
With higher vaccination rates and further easing of restrictions, there is cautious optimism for further recovery in mall traffic and tenant sales. Although rental activity has picked up, rent reversion is likely to be weak as retailers remain cautious due to the uncertain operating environment. Suntec City Mall revenue is expected to improve with higher occupancy and higher GTO rents.
Suntec convention
The recovery of the congress business will continue to be slow due to weak international business and leisure travel. Thus, the domestic market remains the key revenue driver, albeit heavily dependent on the further easing of restrictions on large corporate and consumer events. Suntec Convention revenue contribution remains significantly impacted for 2022.
Australia portfolio
The “flight to quality” trend continues to benefit new properties such as 21 Harris Street and 477 Collins Street as these two prime properties enjoy high occupancy rates. Revenue from the Australia portfolio is expected to remain robust, supported by strong occupancy rates, annual rent increases and long leases with minimal lease expiration in 2022. Tenant guarantees in place for the vacant space at 21 Harris Street and Collins Street 477 continue to support the resilience of the Australia portfolio.
2
United Kingdom
Office revenue is expected to remain stable, supported by high occupancy and long WALE with minimal lease expiration through 2027. In addition, retail revenue will continue to be protected by income support.
Mr. Chong concluded, “Suntec REIT shareholders will continue to benefit from the earnings stability of its portfolio of assets, which will be enhanced by its geographic diversification with quality office properties in Australia and the UK. The manager will continue to strengthen its balance sheet through active capital management.”
-END-
3
ABOUT SUNTEC REIT
Suntec REIT was listed on December 9, 2004 and holds properties in Suntec City, Singapore’s largest integrated commercial development (including one of Singapore’s largest shopping malls), a 66.3% interest in Suntec Singapore Convention & Exhibition Centre, a 1/3 Interest in One Raffles Quay and a one-third interest in Marina Bay Financial Center Towers 1 and 2 and the Marina Bay Link Mall. Suntec REIT holds a 100% interest in a commercial building at 177 Pacific Highway, Sydney, a 100% interest in a commercial building at 21 Harris Street, Pyrmont, Sydney, a 50.0% interest in Southgate Complex, Melbourne, a 50 .0% interest in a commercial building at 477 Collins Street, Olderfleet, Melbourne and a 100% interest in a commercial building at 55 Currie Street, Adelaide, Australia. Suntec REIT also holds a 50.0% interest in Nova Properties and a 100% interest in The Minster Building, both in London, UK. Suntec REIT is managed by an external manager, ARA Trust Management (Suntec) Limited. For more information, see www.suntecreit.com.
ABOUT ARA TRUST MANAGEMENT (SUNTEC) LIMITED
Suntec REIT is managed by ARA Trust Management (Suntec) Limited, a wholly owned subsidiary of ARA Asset Management Limited (“ARA”).
ARA is part of the ESR Group (the “Group”), the largest real estate asset manager in APAC powered by the New Economy and the third largest publicly traded real estate investment manager worldwide. With $140 billion in gross assets under management (AUM), our fully integrated development and investment management platform spans major APAC markets including China, Japan, South Korea, Australia, Singapore, India, New Zealand and Southeast Asia representing over 95 % of GDP in APAC and also includes an expanding presence in Europe and the US. We offer a diverse range of real estate investment solutions and new economy real estate development opportunities across our private funds business, enabling capital partners and clients to capitalize on key secular trends in APAC. With 14 public REITs managed by the group and its partners, ESR is the largest sponsor and manager of REITs in APAC with $45 billion in total assets under management. Our purpose – space and investment solutions for a sustainable future – drives us to operate sustainably and effectively, and we consider the environment and the communities in which we operate as important stakeholders of our business. ESR is listed on the Main Board of the Hong Kong Stock Exchange and is a constituent of the FTSE Global Equity Index Series (Large Cap), the Hang Seng Composite Index and the MSCI Hong Kong Index.
For more information, see www.ara-group.com,www.esr.com.
IMPORTANT NOTE
This announcement is for informational purposes only and does not constitute, and does not constitute a part of, an offer or solicitation for sale or issue or solicitation of an offer to subscribe for or purchase any interest in Suntec REIT (the “Shares”) in any jurisdiction such offer or solicitation is unlawful.
The value of Shares and the income from them may go down as well as up. Shares are not a liability, deposit or guarantee of the Management Company or any of its affiliates. An investment in Shares is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request the Management Company to redeem their Shares whilst the Shares are listed. It is intended that Shareholders will only be able to trade their Shares through trading on the SGX-ST. The listing of the Shares on the SGX-ST does not guarantee a liquid market for the Shares. The past performance of the Suntec REIT is not necessarily an indication of the future performance of the Suntec REIT.
contacts
ARA Trust Management (Suntec) Limited
Phone: +65 6835 9232
Melissa Chow
Managers, Investor Relations [email protected]
4
Disclaimer
Suntec Real Estate Investment Trust published this content on January 26, 2022 and is solely responsible for the information contained therein. Distributed by the public, unedited and unmodified, on January 26, 2022 02:05:09 UTC.
Public now 2022
|
|
|
|
|
||||
|
||||
Technical Analysis Trends SUNTEC REAL ESTATE INVESTMENT TRUST
| In the short term | medium term | long term | |
| tendencies | bullish | Neutral | Neutral |
Development of the income statement
|
To sell
Obtain |
|
| Medium consensus | EXCEED |
| Number of Analysts | 16 |
| Last closing price |
1.54 SGD |
| Average target price |
1.66 SGD |
| Spread / Average Target | 7.59% |
