Suntec REIT DPU up 17.1% YoY to 8.67 cents for FY21
The result was due to a higher distribution income of $129m.
Suntec REIT announced an increased real estate investment trust distribution per unit (REIT DPU) of 17.1% year-on-year (YoY) to 8.67 cents for the financial year 2021, according to results released by the group.
This performance was attributed to a higher distribution income of $129m, or a 21.6% YoY increase. Contributions from the two newly acquired assets in London, as well as Suntec City Mall also added to this performance.
“We are pleased to have delivered on our active portfolio management strategy. Through the divestments of lower-yielding assets and the acquisitions of higher-yielding DPU and net asset value accretive assets, the diversification into the UK has reinforced the REIT’s income stream and enhanced unitholders’ value,” said Chong Kee Hiong, CEO, Suntec REIT.
The business outlook for the company is also expected to improve in tandem with economic recovery due to demand from the technology and financial services sectors. High expiry rents across the portfolio can also result in weak positive rent reversion.
Meanwhile, cautious optimism is expected on Suntec City Mall, due to the uncertain operating environment. Revenue is also expected to increase due to higher occupancy and higher GTO rents.
Suntec Convention is also expected to experience a slow recovery due to weak international business and leisure travel. The domestic market, then, will continue to remain as the key revenue driver, with it being dependent on the further easing of restrictions.