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Suntec Reit
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1 cent divi+ Prime takeover/Privitsation candidate
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Delvyss
Elite |
10-Mar-2026 15:11
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Responding positively to the news
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Joelton
Supreme |
10-Mar-2026 10:47
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Acquisition of Suntec REIT' s manager given go-ahead by MAS ESR Trust Management, manager of Suntec REIT, says that its acquisition by Acrophyte Asset Management has been given the green light by the Monetary Authority of Singapore. The acquisition of the manager was first tabled last December, which follows a mandatory conditional offer of $1.16 per unit in Suntec REIT on Dec 5, 2024 by an entity called Aelios. Both Aelios and Acrophyte Asset Management are held by Gordon and Celine Tang. &ldquo Acquiring the manager is an extension of our commitment to Suntec REIT. We look forward to working closely with the Board and the management team to review existing strategies and implement further value-adding initiatives to the benefit of all unitholders,&rdquo said Tang back then. Suntec REIT units closed at $1.33 on March 9, down 2.21% for the day. |
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Delvyss
Elite |
26-Feb-2026 10:00
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Very valid points. The stage has been set with all the facilitation, and I think overall sentiments has improved. Given time, will pick up further. Meantime ..... New workgroup to draw growth capital into Singapore
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MrBear12 ( Date: 26-Feb-2026 09:44) Posted:
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Delvyss ( Date: 26-Feb-2026 09:35) Posted:
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Delvyss ( Date: 26-Feb-2026 09:35) Posted:
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Singapore begins allocating $5b to boost local stocks
https://sg.finance.yahoo.com/news/singapore-begins-allocating-5b-boost-221000805.html
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Delvyss ( Date: 06-Feb-2026 10:11) Posted:
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PiRPiR ( Date: 06-Feb-2026 12:36) Posted:
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How Suntec REIT' s 23.2% H2 Distribution Jump At Suntec Real Estate Investment Trust (SGX:T82U) Has Changed Its Investment Story
https://simplywall.st/stocks/sg/real-estate/sgx-t82u/suntec-real-estate-investment-trust-shares/news/how-suntec-reits-232-h2-distribution-jump-at-suntec-real-est
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Suntec REIT plans to return home
Goola Warden
Goola Warden
Thu, Feb 05, 2026 ? 06:45 PM GMT+08 ? 7 min read
During Suntec REIT?s results briefing on Jan 23, Chong Kee Hiong, CEO of Suntec REIT?s manager, was clear about how he wants the REIT?s portfolio to take shape.
Ideally, the REIT plans to divest a mature Australian asset to prime its portfolio for a Singapore asset from its new sponsor. The change in ownership of the manager and the new sponsor is subject to approval by the Monetary Authority of Singapore.
At the briefing, Chong described the drama in the 20 days to Dec 11. Hongkong Land had plans to divest its one-third stake in Marina Bay Financial Towers (MBFC) 1, 2 and 3, One Raffles Quay (ORQ) and its 100% stake in One Raffles Link. Keppel REIT and Suntec REIT each own a one-third stake in One Raffles Quay and MBFC Towers 1 and 2. Before Dec 11, Keppel REIT held a one-third stake in MBFC Tower 3, Hongkong Land held a one-third stake, and DBS held the remaining one-third. DBS is also the anchor tenant of MBFC Tower 3.
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" JP Morgan notes that the transition to the new sponsor remains subject to MAS approval, which could be granted within the next one to two weeks. Under the new sponsor, management could consider pipeline assets such as 9 Penang Road, which may be accretive if fully debt-funded, although this would push gearing above 45%, JP Morgan notes. It adds: " Management would not consider dilutive equity-raising to acquire assets. Non-complementary assets to the portfolio, such as US hotels, would also not be under consideration."
Joelton ( Date: 06-Feb-2026 09:54) Posted:
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Suntec REIT plans to return home
During Suntec REIT&rsquo s results briefing on Jan 23, Chong Kee Hiong, CEO of Suntec REIT&rsquo s manager, was clear about how he wants the REIT&rsquo s portfolio to take shape.
Ideally, the REIT plans to divest a mature Australian asset to prime its portfolio for a Singapore asset from its new sponsor. The change in ownership of the manager and the new sponsor is subject to approval by the Monetary Authority of Singapore.
At the briefing, Chong described the drama in the 20 days to Dec 11. Hongkong Land had plans to divest its one-third stake in Marina Bay Financial Towers (MBFC) 1, 2 and 3, One Raffles Quay (ORQ) and its 100% stake in One Raffles Link. Keppel REIT and Suntec REIT each own a one-third stake in One Raffles Quay and MBFC Towers 1 and 2. Before Dec 11, Keppel REIT held a one-third stake in MBFC Tower 3, Hongkong Land held a one-third stake, and DBS held the remaining one-third. DBS is also the anchor tenant of MBFC Tower 3.
Chong says: &ldquo We only had 20 days to respond, not 20 working days, 20 days including weekends to respond. Hongkong Land wanted to set up a fund for its assets. As part of the joint venture agreement, they have to offer it to the remaining JV partners. So they offered us one-sixth and Keppel REIT one-sixth in MBFC Towers 1 and 2, and ORQ. When we did our analysis, we analysed both one-sixth and one-third because whichever party doesn&rsquo t take up the one-sixth, it will be offered to the other JV (joint venture) partner.&rdquo
He adds: &ldquo We could not just assume Keppel REIT will take up the one-sixth stake. When we analysed the one-sixth stake, we estimated that our balance sheet can bear the higher aggregate leverage, bringing it to around 45%. We would subsequently reduce leverage.&rdquo
As it turned out, Suntec REIT did not accept the one-sixth stake in ORQ and MBFC Towers 1 and 2. Keppel REIT accepted the right of first refusal for MBFC Tower 3.
&ldquo We are looking at speeding up divestment of assets, rather than equity fundraising. That was in the plan,&rdquo says Chong. If Suntec REIT acquired the entire one-third stake, its aggregate leverage would have risen to 50%. At that level, the risk would have been entirely different as he tells it.
The banks were supportive, Chong says, as the assets are well known. Both location and assets are prime Grade A. The tenants are well known too. Standard Chartered and HSBC anchor MBFC 1 and 2.
&ldquo The challenge, of course, is that good assets never come cheap. They were fully priced. So the buyer has to take a view on future rental growth and future capital value increase over time. We would be buying for the next cycle. We also looked at accretion,&rdquo adds Chong.
Based on pro forma numbers, Keppel REIT&rsquo s acquisition of a one-third stake in MBFC Tower 3 would have been 6.4% dilutive to distributions per unit (DPU), based on a blended interest cost of debt of 3.3% a year, and the dilution would be 3.6% if the blended interest cost is 2.2%. Keppel REIT&rsquo s DPU for FY2025 was 5.23 cents, down 6.6% y-o-y.
To fund the acquisition, Keppel REIT raised $886.3 million through a preferential equity offering of 23 new units for every 100 existing units held, at 96 cents per unit. Although the equity fundraising fell short of the 100% subscription target, it was underwritten by the three local banks.
Divesting Australian assets remains a work-in-progress. According to Chong, most of its assets Down Under are &ldquo pretty mature&rdquo given that occupancies at 177 Pacific Highway, Sydney (100%), 477 Collins Street, Melbourne (100%) and 21 Harris Street, Sydney (97.8%) are well above the CBD average in those cities.
&ldquo Obviously, one aspect is to have high occupancy before investors are keen to look at the asset, especially for the Australian market, because the buyer wants the incentives to be borne by the vendor. Therefore, buyers always want fully leased buildings unless they want to tear them down. We have three buildings that are 100% occupied,&rdquo says Chong.
According to Suntec REIT&rsquo s presentation on Jan 23, tenant incentives in Adelaide and Melbourne are at 45% to 50%. This means that the landlord is providing concessions equivalent to nearly half the total rent over the lease term to secure a tenant. This high percentage is usually offered in high-vacancy markets via rent-free periods or cash for fit-outs.
It appears that Melbourne&rsquo s CBD retail and office sector is weak because the return to office has been slow. &ldquo Though we see green shoots, it will take at least two years for Southgate to fill up nicely. Other than Adelaide (55 Currie Street&rsquo s occupancy is 66%), the other four assets are ones that we can look at,&rdquo adds Chong, referring to thoughts on divestment.
Outlook for office
CBRE says Australia&rsquo s economy is forecast to grow 2% in 2026, supported by immigration, the infrastructure and care sectors, and with interest rates likely to remain on hold. Investment volumes are forecast to grow 5%&ndash 10% in 2026, led by office and industrial sectors, with cap rates tightening 25 to 40 basis points through 2028.
&ldquo Total returns for CBD office assets are forecast to exceed historical averages over the next three years, led by Brisbane and Canberra, supported by improving net effective rents and modest cap rate tightening. New CBD office supply will be sharply constrained &mdash three of the next five years will see no new Sydney completions, and most other cities will have four years with no new supply. This scarcity will drive rental growth,&rdquo CBRE says.
CBRE forecasts +3.3% net effective rent growth in 2026, with Brisbane (+7.3%) and Sydney (+6.6%) leading the pack. Melbourne&rsquo s recovery is expected to begin in 2027 as incentives decline from their current peaks.
Chong says the Australian market is starting to be &ldquo open to more transactions&rdquo . North Asian capital and pension funds are looking at Australian investment property. &ldquo The kicker will be when Australian interest rates come down, then the capital market transaction will pick up,&rdquo he adds.
New sponsor
In the meantime, Suntec REIT&rsquo s manager is in the process of being acquired by Acrophyte Asset Management, which, subject to regulatory approval, will be Suntec REIT&rsquo s new sponsor. &ldquo We are in transition to a new sponsor. We need to sit down and talk through the bigger picture. But as you know, the sponsor has an asset ready for acquisition,&rdquo says Chong.
JP Morgan notes that the transition to the new sponsor remains subject to MAS approval, which could be granted within the next one to two weeks. Under the new sponsor, management could consider pipeline assets such as 9 Penang Road, which may be accretive if fully debt-funded, although this would push gearing above 45%, JP Morgan notes. It adds: &ldquo Management would not consider dilutive equity-raising to acquire assets. Non-complementary assets to the portfolio, such as US hotels, would also not be under consideration.&rdquo
On June 29, 2015, Suntec REIT announced the divestment of 9 Penang Road, then known as Park Mall, for $411.8 million. In conjunction with the divestment, Park Mall Investment Limited, a joint venture in which Suntec REIT held a 30% interest, was established to redevelop Park Mall into a commercial development comprising two office blocks with an ancillary retail component.
In 2021, Suntec REIT sold its 30% stake in Park Mall Investment to Haiyi Holdings, an entity controlled by Gordon Tang. Tang and his wife, Celine, also own Acrophyte Asset Management. Separately, the couple hold about 9.2% of OUE REIT and are reportedly friends with the Riadys.
In an update, Maybank Securities notes that FY2025 DPU surged 13.6% y-o-y to 7.035 cents, underpinned by savings in financing costs, a resilient Singapore portfolio and the retention of Managed Investment Trust status in Australia.
&ldquo Overseas performance remained a drag, though we saw progressive lease commencements in 4Q2025 in Australia. Lower financing expense (&ndash 12.8% y-o-y) and a $2 million reversal of Australian withholding tax provision further supported DPU growth,&rdquo says Maybank. It has a buy rating and a $1.56 target. Suntec REIT is up 23.7% in the past year. Its Jan 30 price of $1.46 translates into a DPU yield of 4.8%.
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Suntec REIT 2026 Outlook: Strong Singapore Portfolio Drives DPU Growth, Upgraded to Add Rating | Latest Financial & ESG Highlights
https://www.minichart.com.sg/2026/01/27/suntec-reit-2026-outlook-strong-singapore-portfolio-drives-dpu-growth-upgraded-to-add-rating-latest-financial-esg-highlights/
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Suntec REIT - Singapore' s strong performance fuels growth
https://www.poems.com.sg/stock-research/SUN.SG/
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https://www.dbs.com.sg/treasures/aics/templatedata/article/equity/data/en/DBSV/012014/SUN_SP.xml
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Analysts generally remain positive on Suntec REIT' s outlook following strong set of FY2025 results
https://www.theedgesingapore.com/capital/brokers-calls/analysts-generally-remain-positive-suntec-reits-outlook-following-strong-set
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Suntec Reit DPU jumps 23.2% for H2 on stronger operational performance, lower financing costs
For the full year, the figure is 13.6% higher at S$0.07035
[SINGAPORE] Suntec Real Estate Investment Trust (Reit) recorded a distribution per unit (DPU) of S$0.0388 for the second half-year ended Dec 31, 2025. This was a 23.2 per cent increase from the DPU of S$0.0315 for the corresponding period a year earlier.
Revenue edged up 0.2 per cent to S$237.1 million for H2 FY2025, from S$236.7 million previously.
The marginal growth was driven by higher revenue from its Singapore and London properties, which offset lower revenue from two assets in Australia, said the Reit&rsquo s manager in a bourse filing on Thursday (Jan 22). Revenue from the Reit&rsquo s flagship Suntec City property in Singapore rose S$2.5 million, or 1.9 per cent, on the year to S$136.1 million in H2.
Net property income (NPI) fell 1.5 per cent year on year to S$157.3 million for the half-year, from S$159.8 million.
Distributable income from operations increased 24.1 per cent to S$114.5 million, from S$92.2 million in H2 FY2024. This followed an 18.2 per cent decline in finance expenses to S$72.7 million for the recent half-year, from S$88.8 million a year earlier, due to the repayment of bank loans and lower interest rates.
The distribution for the period from Oct 1, 2025, to Dec 31, 2025, will be paid on Feb 27, following books closure on Jan 30.
For the full year ended Dec 31, DPU was 13.6 per cent higher at S$0.07035, while distributable income rose 14.6 per cent to S$207.3 million.
Revenue for the year increased 1.7 per cent to S$471.6 million, and NPI grew 1.9 per cent to S$316.8 million.
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Shares of the REIT were up nearly 4% in Friday trading.
Net property income declined 1.5% to SG$157.3 million from SG$159.8 million a year earlier.
Distribution income from operations, meanwhile, was up 24% to SG$114.5 million from SG$92.2 million a year earlier.
Gross revenue inched up 0.2% year over year to SG$237.1 million from SG$236.7 million.
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