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What Investors Should Know About Suntec Real Estate Investment Trust’s Assets

Suntec Real Estate Investment Trust (SGX: T82U) is one of the largest REITs in Singapore’s stock market. For any investor interested in Suntec REIT, it is important to understand the assets that it owns.

The table below shows the occupancy, revenue, and net property income from the various office components of Suntec REIT’s portfolio:


Source: Suntec REIT 2017 first quarter earnings presentation

The next table displays the same details as the one above, but this time it’s for the retail component of Suntec REIT’s portfolio:


Source: Suntec REIT 2017 first quarter earnings presentation

There are a few observations we can draw from the two tables.

Firstly, Suntec REIT’s portfolio has six properties in total. Four of them are in Singapore while the other two are in Australia.  All of the six properties have an office component, whereas only three have a retail component.

Secondly, Suntec City and 177 Pacific Highway are the only two properties that are fully owned by Suntec REIT. The other four properties are partially owned.

Thirdly, Suntec REIT derives most of its income from Singapore. 82% of its total office-related income comes from Singapore, whereas the self-same percentage for retail-related income is 98%.

Fourthly, the office segment is way more important to Suntec REIT than the retail segment. In the first quarter of 2017, the net property income and income contribution from joint-ventures for the office segment was S$59.8 million in all. The same number for the retail segment was S$23.5 million.

Lastly, Suntec REIT’s office and retail portfolios both have high occupancy rates that are in excess of 98%.

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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 Lawrence Nga doesn’t own shares in any companies mentioned.