Suntec Reit reports decent Q4 numbers

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Suntec Real Estate Investment Trust (Suntec Reit) reported a net property income of S$52.0 million and distributable income of S$55.3 million in the fourth quarter, attributed to improvements in occupancy rates amidst negative rental reversions of its office portfolio.

“The decent results were achieved despite the negative rental reversions in its office portfolio, thanks to higher contribution from MBFC Properties and greater interest savings from prudent capital management,” said OCBC in a report carried by Singapore Business Review.

In terms of overall rental and office portfolios, OCBC noted that the trust also registered “marginal improvements in occupancy to 99.2 percent and 97.5 percent.” It added that the management will take a proactive approach towards its leasing strategy in view of the uncertain economic outlook.

“We understand that only approximately 10.0 percent of its office leases by NLA (net lettable area) are due to expire in 2012, after management renewed more than 233,000 sq ft of the leases.”

Suntec Reit’s aggregate leverage stood at 39.1 percent as of 31 December 2011. “This is an improvement from its leverage of 41.8 percent seen in 3Q, helped mainly by a positive S$396.2 million revaluation of its investment properties,” it said.

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