Broker: CGS International
Date of Report: April 27, 2026
Excerpt from CGS International report.
Report Summary
- Stock Focus: Suntec REIT (SUN SP)
- Action: Add (Buy) rating maintained
- Target Price: S\$1.64 (raised from S\$1.58)
- Current Price: S\$1.50
- Key Highlights:
- 1Q26 DPU of 1.936 Scts, up 23.9% year-on-year, slightly above expectations.
- Strong performance from Singapore office and retail assets; overseas assets face occupancy challenges.
- Singapore office portfolio committed occupancy at 98.8% with +9.5% rental reversion; Suntec Mall occupancy at 99% with +15% rent reversion.
- FY26-27F DPU forecasts raised by 2-3.44%, FY28F DPU lowered by 2.15%.
- Gearing stable at 41.6%; cost of debt at 3.56%.
- Key catalysts: Balance sheet strengthening, decline in funding costs, faster overseas occupancy recovery.
- Risks: Higher interest rates, weak macro outlook impacting office demand.
- 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
