Suntec Reit Q1 DPU rises 23.9% to S$0.01936 on strong Singapore office, retail performance

[SINGAPORE] Suntec Real Estate Investment Trust (Reit) recorded a distribution per unit (DPU) of S$0.01936 for its first quarter ended Mar 31, 2026. This is up 23.9 per cent from S$0.01563 in the year-ago period.

The manager on Thursday (Apr 23) noted that the improvements came amid stronger operating performance from the Singapore retail and office portfolios, and lower financing costs.

Revenue increased 1.9 per cent to S$115.6 million from S$113.5 million in the previous corresponding period.

Net property income (NPI) inched up 0.3 per cent to S$77.3 million from S$77.1 million previously.

For the quarter, distributable income to unitholders stood at S$57.3 million, a 24.8 per cent year-on-year increase from S$45.9 million. The distribution will be paid out on May 29.

Singapore retail revenue rose 8.7 per cent year on year in Q1 to S$38.8 million from S$35.7 million previously. In the same period, its net property income (NPI) rose 10.1 per cent to S$27.3 million from S$24.8 million.

The strengthened performance was due to higher occupancy and rent at Suntec City mall, said the manager.

Committed occupancy for the retail segment rose to 99 per cent from 98.2 per cent in Q1 2025; the office portfolio’s committed occupancy rose to 98.8 per cent from 98.7 per cent.

Meanwhile, committed occupancy for the Australia portfolio fell on the year to 90.7 per cent from 90.9 per cent. The UK portfolio dropped to 92.5 per cent from 95.3 per cent.

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The Singapore office and retail portfolios both recorded positive rental reversions of 9.5 per cent and 14.3 per cent, respectively.

Suntec Reit’s total outstanding debt as at Mar 31, 2026, stood at S$4.10 billion, largely unchanged from S$4.11 billion as at Dec 31, 2025.

Its net asset value per unit as at March held steady at S$2.03, compared with December.

Aggregate leverage ratio inched up to 41.6 per cent as at end-March, from 41.5 per cent the previous quarter.

The trust’s weighted average debt maturity fell to 2.44 years as at March 2026, from 2.72 years as at December 2025.

In terms of retail outlook, the manager noted that retail sales growth is expected to moderate due to cautious consumer spending against global economic uncertainties.

It also expects to see retail spend leakage due to the upcoming Johor Bahru-Singapore Rapid Transit System Link, set to launch in 2027.

Committed occupancy is forecast to stay high with positive rental reversion projected to be close to 10 per cent.

For convention outlook, the manager anticipates a “stable performance” in FY2026 amid the “challenging outlook”, but added that asset enhancement initiatives completed in FY2025 will enhance income resilience.

Units of Suntec Reit closed Thursday 0.7 per cent or S$0.01 down at S$1.49, before the news.