Broker: CGS International
Date of Report: April 27, 2026
Excerpt from CGS International report.
Report Summary
Stock: Suntec REIT (SUN SP)
Action: Add
Target Price: S\$1.64
Current Price: S\$1.50
Upside: 9.2%
Key Highlights:
- 1Q26 DPU of 1.936 Scts, +23.9% yoy, slightly above expectations at 27.3% of FY26F forecast.
- Singapore assets performed robustly with high occupancy (office: 98.8%, mall: 99%) and strong rent reversions (office: +9.5%, mall: +15%).
- Management guides for positive office rental reversion (~5%) and Suntec Mall reversion (~10%) for FY26F.
- Gearing stable at 41.6%, cost of debt at 3.56%.
- Key catalysts: faster balance sheet strengthening, lower funding costs, and quicker backfilling of overseas assets.
- Risks: higher-than-expected rate hikes, weak macro environment.
Actionable Insight: Maintain Add rating on Suntec REIT with raised target price of S\$1.64, supported by robust Singapore earnings and positive rental outlook.
Ticker: SUN SP
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.cgs-cimb.com
