SINGAPORE (June 9): With Phase 2 reopening of Singapore’s “circuit breaker” measures anticipated to take place earlier than expected, DBS Group Research analysts Rachel Tan and Derek Tan have reiterated their “buy” call on Suntec REIT as the return of workers to their offices is likely to improve prospects for Suntec City Mall and the REIT’s office buildings. 

The Covid-19 pandemic had seen Suntec REIT hit hard by circuit breaker measures due to its exposure to Suntec City Mall and several office buildings within its portfolio. 

For 1Q20, revenues fell 3% y-o-y to $87 million while Net Property Income (NPI) fell 7% y-o-y to $54 million, driven primarily by a 10% y-o-y decline in NPI from the mall. A weak Australian Dollar (AUD) also affected earnings from Suntec’s Australian holdings, though earnings from 55 Currie Street have mitigated losses. 

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