Source: bloomberg
Suntec REIT currently have a NAV of $2.03 and priced at $1.53 on 20 Jul 13, Fri. However, gathered sources reveal that it had one of the most expensive management fees in SGX REIT section, and also had stopped receiving income support for its One Raffles Quay (ORQ) property. Management blamed the 4.7% fall in DPU on the partial closure of Suntec Mall and Suntec Singapore for enhancement works.
Source: http://www.todayonline.com/business/suntec-reit-posts-47-fall-q2-dpu
Source: http://infopub.sgx.com/FileOpen/Suntec-2Q2013-Presentation.ashx?App=Announcement&FileID=248407
Suntec REIT might be affected by the possible hike in interest rates in the future, However, with the basket of good portfolio assets, it may become profitable in future when its Suntec assets reopened fully and is able to extend the lease of the current office tenants which lease is set to expire in 2013.
Apart from that, it is also able to benefit from the increasing office rates, especially in key CBD areas in MBFC and OFQ
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