Suntec Real Estate Investment Trust (T82U) H1 2025 earnings summary

Executive summary

• H1 2025 distributable income rose 4.6% YoY to $92.8m and DPU increased 3.7% to 3.155 cents, supported by stronger Singapore operations and lower financing costs.

• Total return after tax was a loss of $41.7m versus a profit of $89.0m in H1 FY24, mainly reflecting higher tax expense and derivative fair value losses.

Financial highlights

• Gross revenue increased 3.3% YoY to $234.5m; NPI rose 5.6% to $159.5m.

• JV income rose 3.2% to $51.2m, excluding fair value adjustment losses of $0.3m in 1H 2025 and gains of $0.1m in 1H 2024.

• Distributable income increased $4.1m to $92.8m; DPU rose 0.113 cents to 3.155 cents YoY.

• Stronger Singapore operations and $6m lower financing costs supported distributable income, partly offset by a $4m higher Australian withholding tax provision.

• Net income before derivative fair value changes, divestment gains and tax was $96.1m, up 18.9%; operating cash flow was $117.6m, versus $113.6m.

Outlook and guidance

• Singapore office occupancy is expected to remain high; FY25 rent reversion is expected to be similar to 1H 2025.

• Singapore retail committed occupancy is expected to remain above 95%; FY25 rent reversion is expected to remain positive but below 1H 2025.

• Australia and UK portfolio performance is expected to remain stable; backfilling vacancies at The Minster Building remains a focus.

• Suntec Convention performance is expected to remain stable, focusing on higher-yielding and public-sector events and new revenue streams.

• All-in financing cost is expected to remain below 4% as SGD interest rates soften.