Brokers' take

Suntec Reit | Add Target price: S$2.08 July 26 close: S$1.86 CGS-CIMB, July 25

Suntec Reit reported a 3.7 per cent rise in Q2 revenue to S$90.5 million from last year, thanks to higher contributions from Suntec Convention Singapore and 177 Pacific Highway in Australia, while distributable income remained flat y-o-y.

However, distribution per unit (DPU) of 2.47 cents was 0.8 per cent lower y-o-y due to lower net property income margin, higher interest cost and an expansion in the unit base from the conversion of bonds earlier this year.