by winston » Wed Jan 27, 2016 10:54 am
vested
Suntec REIT: 4Q15 beat on higher distribution from capital
Suntec REIT reported 4Q15 gross revenue of S$87.5m, representing an increase of 13.9% YoY.
DPU jumped 6.7% YoY to 2.75 S cents, exceeding our expectations.
However, the beat came largely because of a distribution from capital (0.332 S cents per unit).
One of the concerns we had was the significant amount of office leases expiring in 2016 for Suntec REIT’s portfolio.
We note that while progress has been made, we believe there are still downside risks ahead.
On the retail front, overall committed passing rent for Suntec City Mall appears to have stabilised at S$12.04 psf/month (flat QoQ), while 98% committed occupancy has been achieved.
Nevertheless, Suntec REIT still has 27% of its retail NLA which is expiring in 2016.
We make some minor tweaks to our FY16 forecasts, and introduce our FY17 projections.
Rolling forward our valuations, we derive a slightly higher fair value estimate of S$1.51 (previously S$1.50).
Maintain HOLD as we see limited potential upside at this juncture.
Source: OCBC
It's all about "how much you made when you were right" & "how little you lost when you were wrong"