Suntec Reit posts 24.8% rise in H1 DPU to S$0.03936

[SINGAPORE] The manager of Suntec Real Estate Investment Trust (Reit) on Thursday (Jul 23) posted a distribution per unit (DPU) of S$0.03936 for the first half ended June, up 24.8 per cent from S$0.03155 in the previous corresponding period.

A distribution of S$0.01936 per unit was paid out on May 29. The remaining H1 distribution of S$0.02 per unit will be paid on Aug 28.

Distributable income rose 25.5 per cent to S$116.5 million for H1 FY2026, from S$92.8 million in the same period the year before.

The manager attributed the improved DPU to the stronger operational performance of its Singapore office and retail portfolio.

Lower financing costs also contributed to the better performance, alongside lower withholding tax provision in Australia, with the Reit retaining its managed investment trust status in the country.

The operating gains more than offset the absence of a one-off compensation recorded in H1 FY2025 due to the surrender of three floors at 177 Pacific Highway in Sydney. The three floors in the Sydney commercial property have since been backfilled.

The gains also offset the weaker performance of The Minster Building, an office property in London, due to the lease expiry of a tenant in mid-June 2025.

Revenue up, NPI slips

Gross revenue was up 1.9 per cent at S$238.9 million for the half-year period, from S$234.5 million in H1 FY2025.

Specifically, revenue from Suntec City – which comprises both retail and office areas – increased by 6.2 per cent compared with the year-ago period. Higher occupancy and rent, as well as incremental revenue from the completion of asset enhancement initiatives at the mall contributed to its stronger operating performance.

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As at Jun 30, the committed occupancy of Suntec City Mall, which is the retail space, was up 1.6 percentage points year on year at 99.6 per cent. Meanwhile, Suntec City Office’s committed occupancy rose 0.5 percentage point from a year ago to 100 per cent.

Suntec Singapore, which comprises retail and convention space, contributed revenue of S$40.8 million in H1 FY2026.

Revenue from the convention centre remained largely stable at S$28.9 million, compared with S$29 million previously. Although there were fewer large-scale conferences in H1 this year, the loss was mitigated by more consumer events, stronger media revenue and higher rentals from long-term licensees, said the manager.

Revenue from Suntec Singapore’s retail space improved to S$11.9 million, from S$10.9 million in the year-ago period due to higher occupancy and rent.

However, the Reit’s net property income (NPI) fell 0.3 per cent to S$159 million in H1 FY2026, from S$159.5 million in the previous corresponding period.

The manager attributed the decline to the absence of the one-off compensation recorded at 177 Pacific Highway in H1 FY2025 and lower revenue and higher operating expense due to vacancies at The Minster Building.

Units of Suntec Reit closed Thursday 1.9 per cent or S$0.03 lower at S$1.51, before the results were announced.