Brief Overview:

Suntec REIT (SGX: T82U) has an investment focus on commercial assets used predominantly for retail or office purposes. 

As at 31 December 2025, the REIT’s investments can be found in Singapore, Australia (Adelaide, Sydney, and Melbourne), and the United Kingdom (London), as follows:

Singapore: Suntec City Retail & Office, Suntec Singapore Convention & Exhibition Centre (66.3% interest), One Raffles Quay (33.3% interest), Marina Bay Financial Centre Towers 1 & 2 and Marina Bay Link Mall (33.3% interest)

Australia (Sydney): 177 Pacific Highway, 21 Harris Street

Australia (Melbourne): Southgate Complex (50% interest), Olderfleet, 477 Collins Street (50% interest)

Australia (Adelaide): 55 Currie Street

United Kingdom (London): Nova Properties (50% interest), The Minster Building

Notable Developments Since the REIT’s 3Q FY2025 Results Release:

December 2025 – Acrophyte Asset Management, an entity controlled by Gordon Tang, plans to acquire ESR Group’s 100% indirect interest in the manager of Suntec REIT via a conditional agreement. The proposed acquisition subject to MAS’ approval.

December 2025 – ESR Trust Management announced board changes for Suntec REIT, effective 31 December 2025. Chan Pee Teck Peter, Foo Yee Shoon, Shen Jinchu, and Matthew James Lawson will retire, while Abdul Jabbar Bin Karam Din, Anthony Charles Philip Couse, and David Alasdair William Matheson will join the board.

Financial Figures (4Q FY2024 vs. 4Q FY2025):

The REIT did not provide any financial figures for the 4th quarter. The figures below are self-computed based on the numbers posted for the 3rd quarter, as well as for the 2nd half of the respective periods:

	4Q FY2024	4Q FY2025	% Gain/Loss
Gross Revenue (S$’mil)	$119.0m	$119.6m	+0.5%
Property Operating Expenses (S$’mil)	$39.0m	$40.8m	+4.6%
Net Property Income (S$’mil)	$80.0m	$78.8m	-1.5%
Distributable Income to Unitholders (S$’mil)	$46.0m	$62.1m	+35.0%

A slight negative can be seen in its 4th quarter results where its net property income inched down by 1.5% year on year to S$78.8 million as a result of a higher percentage increase in its property operating expenses (by 4.6%) compared to its gross revenue (which edged up by just 0.5% year on year).

However, the REIT’s distributable income to unitholders surged by 35.0% year on year to S$62.1 million.

Financial Figures (FY2024 vs. FY2025):

	FY2024	FY2025	% Gain/Loss
Gross Revenue (S$’mil)	$463.6m	$471.6m	+1.7%
Property Operating Expenses (S$’mil)	$152.8m	$154.8m	+1.3%
Net Property Income (S$’mil)	$310.8m	$316.8m	+1.9%
Distributable Income to Unitholders (S$’mil)	$180.9m	$207.3m	+14.6%

For the full year, it was a positive set of results reported by Suntec REIT – with its gross revenue and net property income recording a stable 1+% growth, while its distributable income to unitholders recording a 14.6% jump.

The 1.7% and 1.9% year-on-year increase in its gross revenue and net property income to S$471.6 million and S$316.8 million respectively was due to a combination of a stronger performance across the REIT’s Singapore office, retail, and convention, as well as a one-off compensation received at 177 Pacific Highway. 

Distributable income to unitholders improved by 14.6% year on year to S$207.3 million due to a stronger performance from its Singapore portfolio, along with a lower financing cost.

Portfolio Occupancy Profile (3Q FY2025 vs. 4Q FY2025): 

	3Q FY2025	4Q FY2025	Difference (in Percentage Points – pp)
Singapore (Retail)	99.3%	99.5%	+0.2pp
Singapore (Office)	98.5%	98.2%	-0.3pp
Australia (Office & Retail)	87.3%	90.6%	+3.3pp
United Kingdom (Office)	92.5%	92.5%	–

Compared to the previous quarter, only the occupancy rate of its Singapore office recorded a small dip (by 0.3pp), while the occupancy rates for its retail properties in Singapore, as well as its retail and office properties in Australia improved. 

As far as the occupancy rates of its office properties in Singapore goes, all of them saw slight drops: Suntec City Office from 100% in 3Q to 99.8% in 4Q, One Raffles Quay from 97.2% in 3Q to 97.1% in 4Q, and MBFC Towers 1 & 2 from 96.0% in 3Q to 95.4% in 4Q.

On the other hand, the increase in occupancy rates of the REIT’s retail and office properties in Australia can be attributed to improvements in the occupancy rates of 477 Collins Street (from 96.7% in 3Q to 100% in 4Q), Southgate Complex (86.3% in 3Q to 86.8% in 4Q), and 55 Currie Street (from 51.6% in 3Q to 66.0% in 4Q).

Debt Profile (3Q FY2025 vs. 4Q FY2025):

	3Q FY2025	4Q FY2025
Aggregate Leverage (%)	41.0%	41.5%
Interest Coverage Ratio (times)	2.0x	2.1x
Average Term to Debt Maturity (years)	3.0 years	2.3 years
Average Cost of Debt (%)	3.62%	3.71%
% of Borrowings Hedged at Fixed Rates (%)	~66%	~65%

Overall, Suntec REIT’s debt profile for the 4th quarter weakened slightly.

Particularly, after 3 consecutive quarters of decline in its aggregate leverage (from 43.4% in 1Q to 41.1% in 2Q, and then to 41.0% in 3Q), it inched up by 0.5pp to 41.5% in 4Q. 

At the same time, the REIT’s average cost of debt also edged up by 0.09pp from the previous quarter to 3.71%. 

Its interest coverage ratio was the only one that continued to see a gradual improvement – from 1.9x in 1Q to 2.0x in 2Q and 3Q, and then to 2.1x in 4Q. 

Finally, on its debt maturity in the years ahead, it is well-spread out – in FY2026, it has only 2.5% (or S$100 million) of borrowings due for refinancing. In the next 3 financial years (between FY2027 and FY2029), it has an average of about 28.2% of borrowings due for refinancing each year, with the remaining 13.0% of borrowings due for refinancing only in FY2030 or later.

Distribution Payout to Unitholders (4Q FY2024 vs. 4Q FY2025):

	4Q FY2024	4Q FY2025	% Gain/Loss
Distribution Per Unit (S$’cents)	1.570 cents	2.102 cents	+33.9%

If you are a unitholder of Suntec REIT, do take note of the following dates on its upcoming distribution payout:

Ex-Date: 29 January 2026
Record Date: 30 January 2026
Payout Date: 27 February 2026

Distribution Payout to Unitholders (FY2024 vs. FY2025):

	FY2024	FY2025	% Gain/Loss
Distribution Per Unit (S$’cents)	6.192 cents	7.035 cents	+13.6%

It is encouraging to note that after 2 consecutive years of declines in its distribution payout (by 19.7% year-on-year to 7.135 cents/unit in FY2023, and by 13.2% year-on-year to 6.192 cents/unit in FY2024), it has recorded a strong year-on-year rebound in FY2025.

CEO Mr Chong Kee Hiong’s Comments & Outlook (from the REIT’s Press Release):

Comments: 

“The results reflect the strength and resilience of Suntec REIT, driven by the continual growth in operating performances of the Singapore portfolio.  We remain focused on pro-active disciplined execution of capital and portfolio management to deliver long-term value and sustainable growth to unit holders.”

Outlook:

Singapore Office Portfolio – The office market is expected to remain resilient on the back of limited core CBD office supply and tight vacancies. The REIT will continue proactive engagement with tenants ahead of expiry and to subdivide large spaces to capture diverse demand. The Singapore Office portfolio occupancy is expected to remain high with positive rent reversion expected to be near 5%. The Singapore Office portfolio is expected to remain stable, supported by healthy occupancies and past quarters of strong positive rent reversions.  

Suntec City Mall – A cautious market outlook remains for the retail market on expectation of the impact of the upcoming Johor Bahru-Singapore Rapid Transit System and the potential retail spend leakage, particularly for malls in the northern part of Singapore. The REIT will continue in its efforts to refresh the mall’s trade mix to drive shopper traffic and sales. The Singapore Retail portfolio is well-positioned for growth, supported by higher occupancy, rent and marcoms revenue. Committed occupancy is expected to remain high with positive rent reversion expected to be close to 10%.

Suntec Convention – The Singapore Tourism Board continues its efforts to strengthen Singapore’s value proposition and cost competitiveness as a MICE destination. Stronger performance is expected for Suntec Convention with the continual focus on driving more higher-yielding events.  

Australia Portfolio – Incentive levels for office leases are likely to remain in the range of 40% to 50% at Melbourne and Adelaide. The REIT will be flexible in its marketing approach, such as creating fitted suites and subdividing spaces to meet diverse tenants’ need. The Australia portfolio revenue is expected to be stable supported by the strong occupancies at 177 Pacific Highway, 21 Harris Street and 477 Collins Street. 

United Kingdom – Central London leasing market remained robust and high quality, newly built and refurbished spaces in prime locations continue to be well sought after. Enhancement works and subdivision of large floor plates to capture varied demand are underway to improve the marketability of the vacant units. Operating performance for Nova Properties expected to be stable while The Minster Building remains impacted by vacancies.  

Closing Thoughts:

Results this time round was a little bit of a mixed bag in my opinion.

On the positives – Suntec REIT’s financial figures for the full year recorded a stable growth; distribution payout to unitholders improved in each of the 4 quarters of the year, as well as for the full year (and this stemmed a 2-year decline); occupancy rates of its properties in all 3 geographical locations (Singapore, Australia, as well as in the United Kingdom) continued to remain strong at above 90%, with positive rental reversions recorded for new and/or renewed leases for the financial year (which will aid in the improvements in terms of contribution from existing properties in the financial year ahead).

On the negatives – a slight decline in its net property income in the 4th quarter (due to a higher percentage increase in its property operating expenses compared to its gross revenue); occupancy rates of all of its office properties in Singapore saw slight dips compared to the previous quarter (though they still remain at above 90%); debt profile also weakened slightly (with its aggregate leverage and average cost of debt inching up). 

In the coming quarters of FY2026 ahead, I’ll continue to keep a close eye on the REIT’s aggregate leverage and average cost of debt (because any spike in this may lead to borrowing costs going up and impacting the growth of its distributions), as well as its distribution payout to unitholders (to see if it continues to improve further). Another area of focus will be on the occupancy of its office properties in Singapore, to make sure that their occupancy rates remain at a healthy level of above 90%.

Related Documents:

Press Release
Financial Statements
Presentation Slides
Review Report

Disclaimer: At the time of writing, I am a unitholder of Suntec REIT. 

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