Suntec Real Estate Investment Trust (T82U) H1 2026 earnings summary

Executive summary

• H1 FY26 gross revenue rose 1.9% YoY to $238.9m; distributable income increased 25.5% to $116.5m and DPU rose 24.8% to 3.936 cents.

• Stronger Singapore office and retail operations, lower financing costs and a lower Australian withholding tax provision supported growth.

• Singapore gains more than offset weaker UK performance and the absence of 1H FY25 compensation for surrendered floors at 177 Pacific Highway.

• Total return after tax was $109.4m versus a $41.7m loss in H1 FY25; net income rose 14.5% to $110.1m.

Financial highlights

• Distributable income increased $23.7m YoY to $116.5m; DPU rose 0.78 cents to 3.936 cents.

• Net property income was $159.0m, down 0.3% YoY as higher property expenses offset revenue growth.

• Share of JV profits rose 11.8% to $49.4m, while net finance costs fell 12.1% to $64.4m.

• Total return before tax increased to $115.1m from $56.1m; H1 FY25 tax expense included substantial deferred and withholding tax provisions later reversed in H2 FY25.

• Singapore retail revenue rose 10.9% to $78.6m and NPI 13.6% to $55.3m; Singapore office revenue rose 2.2% to $74.8m and NPI 2.3% to $56.7m.

Outlook and guidance

• Singapore office occupancy is expected to remain high, with FY26 positive rent reversion near 5% and performance expected to improve.

• Singapore retail occupancy is expected to remain high; FY26 positive rent reversion is expected close to 10%, with higher occupancy, rents and marketing revenue supporting performance.

• Convention performance is expected to remain stable in FY26, supported by a healthy Singapore MICE pipeline for 2H 2026 and 2027.

• Australian portfolio performance is expected to remain stable, supported by strong occupancy at 177 Pacific Highway, 21 Harris Street and 477 Collins Street.

• Improved leasing interest at The Minster Building is expected to support occupancy growth in 2H 2026; UK operations are expected to remain stable.