Broker Name: CGS International Securities
Date of Report: January 26, 2026
Excerpt from CGS International Securities report.
- Suntec REIT delivered stronger-than-expected 2H/FY25 results, with DPU and distributable income outpacing forecasts due to lower financing costs and better JV contributions.
- Positive rental reversions in the Singapore office and retail portfolio, moderated debt costs, and stable overseas occupancy underpin a brighter earnings outlook for FY26F, prompting an upgrade to Add with a higher target price.
Report Summary
- 2H/FY25 DPU and income beat expectations, driven by robust performance in Singapore assets and lower debt costs.
- FY26F outlook is positive, supported by further rental growth, stable overseas assets, and improved debt structure; target price raised to S\$1.58 and rating upgraded to Add.
- Key risks include higher interest rates and weaker macroeconomic conditions impacting office demand.
- Suntec REIT maintains strong ESG credentials and continues to improve operational efficiency.
Above is an excerpt from a report by CGS International Securities. Clients of CGS International Securities can be the first to access the full report from the CGS International Securities website: https://www.cgs-cimb.com/en/home
