Suntec Real Estate Investment Trust (T82U) H2 2025 earnings summary

Executive summary

• FY25 distributable income rose 14.6% YoY to S$207.3M and DPU increased 13.6% to 7.035 cents, supported by stronger Singapore operations and lower financing costs.

• Singapore gains more than offset weaker overseas performance, including vacancies in Australia and at The Minster Building; portfolio valuations rose 0.7% to S$11.83B.

Financial highlights

• Gross revenue increased 1.7% YoY to S$471.6M; NPI rose 1.9% to S$316.8M and JV income grew 3.7% to S$103.3M.

• Distributable income increased S$26.4M to S$207.3M; DPU rose 0.843 cents to 7.035 cents.

• Stronger Singapore operations and S$19.9M lower financing costs supported distributable income growth.

• FY25 4Q distribution was 2.102 cents per unit; excluding the reversal of Australian withholding tax, DPU was 2.054 cents.

Outlook and guidance

• Singapore office occupancy is expected to remain high, with positive rent reversion near 5%; leasing focus includes tenant engagement and subdivision of large spaces.

• Singapore retail occupancy is expected to remain high, with rent reversion close to 10%; potential SG–JB RTS retail-spend leakage may affect exposed tenants and malls.

• Stronger Suntec Convention performance is expected in 2026, with a focus on attracting higher-yielding events.

• Australia revenue outlook is stable, supported by occupancy at key Sydney assets; Melbourne and Adelaide incentives remain elevated at 45%–50%.

• Nova Properties performance is expected to be stable; vacancies at The Minster Building remain a headwind as enhancement works and fitted units target leasing.