Suntec Reit posts 9.8% rise in H2 DPU to S$0.04512

SUNTEC real estate investment trust's (Reit) T82U distribution per unit (DPU) rose 9.8 per cent to S$0.04512 for its second half ended Dec 31, 2021, from S$0.04109 a year ago, its manager said in a bourse filing on Wednesday (Jan 26).

The rise in DPU came on the back of higher distribution income from operations which stood at S$129 million for the half-year period, up 21.6 per cent from the S$106 million recorded in the year-ago period.

Gross revenue was up 15.3 per cent to S$191.3 million for H2 2021, from S$165.9 million a year ago. Meanwhile, net property income (NPI) grew 30.3 per cent on the year to S$142 million for the half year, from S$109 million.

The Reit manager said the strong performance was mainly driven by contributions from 2 of the Reit's newly acquired assets in London, as well as higher income from Suntec City Mall amid retail business recovery. It noted that Suntec Reit's office portfolio in Singapore, Australia and the UK "remained resilient".

The amount available for distribution for the second half was S$129 million, up 10.8 per cent from S$116.4 million in H2 2020.

A distribution of S$0.0228 per unit for the Oct 1 to Dec 31, 2021 period will be paid out on Feb 28, 2022, after books closure on Feb 7.

Meanwhile, for the full year ended Dec 31, 2021, DPU was 17.1 per cent higher at S$0.08666, from S$0.07402 a year ago. Gross revenue was 13.5 per cent higher at S$358.1 million, while NPI was 27.4 per cent higher at S$254.6 million. The amount available for distribution was 18.2 per cent higher at S$247.2 million.

As at Dec 31, 2021, valuation of Suntec Reit's portfolio across its Singapore, Australia and UK investment properties increased to S$11.8 billion, from S$11.5 billion a year ago.

Chong Kee Hiong, chief executive officer of the Reit manager, said: "Through the divestments of lower yielding assets and the acquisitions of higher yielding, DPU and net asset value accretive assets, the diversification into UK has reinforced the Reit's income stream and enhanced unitholders' value."

Footfall and tenant sales at Suntec City Mall in December 2021 exceeded those in December 2020, he added. Occupancy also improved to 95 per cent with the introduction of more food and beverage and activity-based tenants to retain and attract shoppers.

Looking ahead, Suntec Reit said it will embark on proactive lease management to enhance the "resilience" of its properties, and strengthen its balance sheet through active capital management. It also intends to further enhance its income stability by sourcing for good-quality assets that are accretive.

Units of Suntec Reit closed at S$1.55, up 0.65 per cent or S$0.01 on Wednesday after the results release.