Suntec REIT - OCBC Investment 2015-10-23: Outlook remains uncertain

SUNTEC REIT SUNTEC REAL ESTATE INV TRUST T82U.SI 

Suntec REIT: Outlook remains uncertain 

 3Q15 DPU rose 8.3% YoY 

 Uncertain leasing outlook 

 Some negatives likely priced in 

3Q15 results within our expectations 

• Suntec REIT reported a 20.4% YoY increase in its 3Q15 gross revenue to S$86.1m. This was driven by the opening of Phase 3 of Suntec City mall following the completion of the AEI and better performance from Suntec Singapore. 

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Suntec REIT - DBS Research 2015-10-23: Headwinds Abound

SUNTEC REIT SUNTEC REAL ESTATE INV TRUST T82U.SI 

Suntec REIT - HEADWINDS ABOUND 

Hemmed in by double headwinds 

• In the year ahead, the REIT’s earnings will be driven by new contribution from recently completed Suntec City Mall redevelopment. Due to headwinds in the retail sector however, we believe that earnings upside is capped as the mall’s rents have underperformed the Manager’s initial target. 
• In addition, there could be downside risk for the REIT’s office assets, which are expected to see some volatility in rents and occupancies when new office supply enters the CBD from 2016 onwards. 

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Suntec REIT - Maybank Kim Eng 2015-10-23: Softer operating performance

SUNTEC REIT SUNTEC REAL ESTATE INV TRUST T82U.SI 

Suntec REIT - Softer operating performance 

• 3Q15 DPU of 2.522 SGD cts in line. Capital distribution lends strength to operations. 9M15 at 77.4% of full-year estimates. 
• Guided down on passing rents at Suntec retail. Occupancy at MBFC offices weakened. However, debt metrics remained healthy. 
• Maintain SELL and SGD1.33 TP (FY16E target yield of 7.25%). Less attractive yields than office peers. 

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