15 Key Numbers Investors Should Know About Suntec Real Estate Investment Trust

Suntec Real Estate Investment Trust  (SGX: C38U), the majority owner of Suntec City, is one of the many companies and real estate investment trusts (REIT) that have released their latest annual reports over the past few weeks.

The annual report is a great place to learn more about a stock. In Suntec REIT’s latest 2015 annual report, the REIT had shared a chockful of interesting numbers. Here are 15 that may be worth noting for investors:

  1. Suntec REIT has a total net lettable area (“NLA”) of 3.4 million square feet. The REIT’s committed occupancy for its office and retail portfolio stood at 99.3% and 97.9%, respectively, as of 31 December 2015. Suntec REIT’s weighted average lease expiry (“WALE”) for its office portfolio was 3.4 years at the end of 2015. The WALE for the retail portfolio was 2.2 years.
  2. Suntec City accounts for the majority of the REIT’s NLA. The mall houses over 360 retail establishments. The mall considers itself as one of Singapore’s largest malls and a leading shopping destination.
  3. Over 50% of Suntec City’s total retail gross rental income in 2015 came from the Food and Beverage and Fashion and Accessories sectors The rest came from a wide variety of retail sectors such as Hair, Beauty and Wellness, Hypermart/ Supermarket, Leisure, Fitness and Entertainment, Services and Others, and more.
  4. Suntec REIT does not fully own Suntec City. For a quick breakdown, Suntec REIT has a 59% interest in Suntec City Office Towers, a 100% stake in Suntec City mall and 60.8% ownership in Suntec Singapore Convention and Exhibition Centre.
  5. The date 18 August 2011 has some significance. It was the day Suntec REIT secured majority control of Suntec Singapore Convention and Exhibition Centre through the acquisition of an additional 40.8% equity stake, raising the REIT’s effective interest from 20.0% to 60.8%. In 2015, Suntec City’s convention centre hosted more than 1,300 events and welcomed more than 3.5 million visitors.
  6. Suntec REIT had chose not to disclose some compensation figures of its management team for competitive reasons. For instance, the board of directors had decided against the disclosure of the remuneration of the CEO, Executive Directors and Executive Officers on a named basis.
  7. Online spending is a rising trend. Suntec REIT’s annual report noted that online spending in Singapore rose from S$1.08 billion in 2014 to S$1.22 billion in 2015, a growth of 13%. These figures were shared by Li Yi Shyan, the Senior Minister of State of the Ministry of Trade and Industry and Ministry of National Development, at the Singapore Retail Industry Conference in the second-half of last year.
  8. To end, here’s a bit of trivia. Suntec City has a place in the Guinness World Records. The property has a three-storey high definition digital wall that is fitted with 664 HD LED screens. The wall is deemed as the “Largest High Definition Video Wall.”

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong owns units in Suntec Real Estate Investment Trust.