Suntec REIT's flagship property in Singapore, Suntec City. (Photo: REITsWeek)Suntec REIT's flagship property in Singapore, Suntec City. (Photo: REITsWeek)

Singapore main board-listed office and retail real estate investment trust Suntec REIT (SGX:T82U) has reported a distributable income of SGD58.3 million for the financial period spanning 1 July to 30 September 2014 (3Q 2014), 12.4% higher compared to the corresponding quarter from 2013.

Correspondingly distribution per unit (DPU) for 3Q 2014 was 2.328 Singapore cents as compared to 3Q 2013 DPU of 2.289 Singapore cents.

“Despite the asset enhancement works for the remaking of Suntec City Phase 3, the amount available for distribution from operations of SGD57.3 million was 20.9% higher year-on-year”, said Yeo See Kiat, CEO for the REIT’s manager.

“This was mainly attributable to the completion of Suntec City Phase 2 and contribution from 177 Pacific Highway, our acquisition in North Sydney”, he added.

Suntec REIT revealed that for its retail portfolio, committed occupancy for Suntec City Phase 1 and Phase 2 was 98.9% while Park Mall maintained 100% committed occupancy. The overall committed occupancy for the retail portfolio stood at 98.4% as at 30 September 2014.

Meanwhile for its office portfolio, Suntec REIT highlighted that it has achieved 100% committed occupancy for Suntec City Office Towers, Park Mall Office, One Raffles Quay and its stake in MBFC.

“During the quarter, we have renewed approximately 280,000 sq ft of leases expiring, leaving us with a balance of 2.1% and 17.9% of the office leases due to expire in 2014 and 2015 respectively” said Yeo.

“We are confident that our office portfolio in 2014 would outperform the preceding year”, said Yeo again adding that the REIT’s current priorities are to focus on the completion of Suntec City’s makeover, strengthening lease commitments, and maintaining high occupancy levels of both office and retail portfolios.

Units of Suntec REIT are currently listed on the Singapore Exchange at SGD1.80.

Committed occupancy for the retail portfolio stood at 98.4% as at 30 September 2014.
Committed occupancy for the retail portfolio stood at 98.4% as at 30 September 2014.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.