Yesterday, Suntec Real Estate Investment Trust (SGX: T82U), or Suntec REIT, released its 2018 fourth earnings update. As a quick introduction, Suntec REIT is one of the largest REITs in Singapore and currently has interests in retail malls and offices in Singapore and Australia.
Here are 10 things investors should know about Suntec REIT’s latest results:
1. Gross revenue for the reporting quarter improved 7.0% to S$93.5 million while net property income grew 2.3% to S$60.7 million.
2. Yet, the REIT’s distribution per unit (DPU) was down by 0.5% year-on-year to 2.59 cents.
3. Based on Suntec REIT’s 2018 full year DPU of 9.988 cents and its unit price of S$1.88, the REIT has a trailing distribution yield of 5.3%.
4. As of 31 December 2018, the REIT’s gearing stood at 38.1%, which is still a safe distance from the regulatory ceiling of 45%.
5. The REIT’s portfolio had a committed occupancy rate for its office and retail properties of 98.7% and 99.1%, respectively, at end of the quarter.
6. The weighted average lease expiry (by net lettable area) for the office and retail properties was 3.80 years and 2.47 years, respectively.
7. In the latest quarter, income contribution from joint ventures was up by 6.6% year-on-year to S$22.7 million.
8. During the quarter, HSBC signed a 10-year lease at Marina Bay Financial Centre Tower 2. Fit out work for the bank’s new headquarters is expected to commence in the second half of 2019 with target occupation by April next year.
9. Suntec City Mall’s footfall and tenant sales grew 4.8% and 5.2%, respectively, on a year-on-year basis.
10. Here are some comments from the REIT on its outlook:
Source: Suntec REIT’s Presentation
Maximise dividends on your REITs with our brand-new Complete Guide To Buying The Best Singapore REITs. We reveal everything we think you need to know about finding the best REITs that hands you a fat dividend cheque ...even if you have no REITs experience at all! Get instant access to your 100% FREE, actionable, 42-page PDF guide here.
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.