Suntec REIT's Southgate Complex in Melbourne, Australia. (Photo: Dexus Property Group)

Despite the unit price of Suntec REIT rallying by 15% in the year-to-date, DBS Equity Research has maintained a ‘Hold’ rating on the counter, although the bank admits that it did not correctly anticipate this price increase.

Suntec REIT announced in late July 2017 that it has achieved distribution per unit (DPU) of 2.493 Singapore cents for its 2Q 2017, which was marginally lower than the 2Q 2016 DPU of 2.501 cents.

This after gross revenue and net property income for the period saw 11.7% and 13.7% increases to SGD87.3 million (USD63.8 million) and SGD59.4 million respectively.

Suntec REIT has also announced the acquisition of a 50% stake in Olderfleet, 477 Collins Street in Melbourne, a freehold land and property to be developed from Mirvac Group for AUD414.17 million.

Read: Suntec REIT announces acquisition from Mirvac Group as DPU falls 0.3%.

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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.