Broker Name: CGS International
Date of Report: January 26, 2026
Excerpt from CGS International report.
Report Summary
- Suntec REIT’s 2H/FY25 DPU of 3.88/7.035 Scts exceeded expectations, driven by lower financing costs and strong income from joint ventures.
- Positive rental reversions in Singapore office and retail, stable overseas occupancy, and moderated debt costs are projected to drive DPU growth in FY26F.
- Singapore office portfolio continues to perform well, with occupancy at 98.2% and strong rental reversions; Suntec Mall also reported high occupancy and robust rent growth.
- Gearing declined to 41.5% with an average all-in debt cost of 3.71%; management expects interest costs to remain stable in FY26F.
- Target price is raised to S\$1.58 and rating upgraded to Add, reflecting improved earnings outlook and stronger Singapore portfolio.
- ESG score improved to B- with ongoing initiatives for carbon neutrality and reduction in emissions, though the Social pillar remains an area for improvement.
- Key risks include potential interest rate hikes and weak macroeconomic conditions that could affect office demand.
- Dividend yields are projected to improve, with DPS growth expected in the coming years and healthy financial ratios supporting stability.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgsi.com.sg/
