Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Asia’s leading multi-asset exchange

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Equity Bottom-Up

<h2>10 Questions for Suntec REIT</h2>
Company Overview Listed in 2004, Suntec REIT holds properties in Suntec City, Singapore’s largest integrated commercial development, Australia and the United Kingdom (UK). Its aim is to invest in income-producing real estate which is primarily used for office and/or retail purposes. Suntec REIT is managed by an external manager, ARA Trust Management (Suntec) Limited. As of 31 March 2022, its portfolio consists of 10 properties — 3 located in Singapore, 5 in Australia and 2 in UK —with a total asset under management (AUM) of S$12.2 billion. <a href="https://www.sgx.com/securities/equities/T82U" target="_blank" rel="noopener">Link to Stock Screener company page</a>.
<ol>
<li>Can you share more about Suntec REIT’s recent financial performance?</li>
</ol>
<ul>
<li>Suntec REIT has continued to achieve strong financial performance in 1Q22, with 18.2% year-on-year (YoY) increase in distributable income. Distribution per unit (DPU) of 2.391 cents in 1Q22 grew 16.9% YoY driven by 8.3% YoY increase in distributable income from operations and a capital distribution of S$5.8 million.</li>
<li>The strong operating performance was mainly driven by new contribution from The Minster Building in London, and higher income from Suntec City Office and Suntec City Mall.</li>
</ul>
2. With a 16.9% YoY increase in DPU to unitholders in 1Q22, how does Suntec REIT plan to sustain DPU growth for unitholders?
<ul>
<li>Suntec REIT will continue to exercise proactive lease management to enhance resilience and sustain revenue growth across our portfolio.</li>
<li>Our Singapore office portfolio is expected to remain strong, driven by the cumulative positive rent reversion achieved in the past 15 quarters, and the full impact of revenue from leases committed in FY21. The major easing of restrictions and reopening of borders also increased optimism about the continued recovery of the retail and convention businesses compared to a year ago.</li>
<li>Long lease tenures and strong occupancy across our overseas properties in Australia and the UK will also provide stability to support income growth.</li>
</ul>

10 Questions for Suntec REIT
Company Overview Listed in 2004, Suntec REIT holds properties in Suntec City, Singapore’s largest integrated commercial development, Australia and the United Kingdom (UK). Its aim is to invest in income-producing real estate which is primarily used for office and/or retail purposes. Suntec REIT is managed by an external manager, ARA Trust Management (Suntec) Limited. As of 31 March 2022, its portfolio consists of 10 properties — 3 located in Singapore, 5 in Australia and 2 in UK —with a total asset under management (AUM) of S$12.2 billion. Link to Stock Screener company page.

Can you share more about Suntec REIT’s recent financial performance?


Suntec REIT has continued to achieve strong financial performance in 1Q22, with 18.2% year-on-year (YoY) increase in distributable income. Distribution per unit (DPU) of 2.391 cents in 1Q22 grew 16.9% YoY driven by 8.3% YoY increase in distributable income from operations and a capital distribution of S$5.8 million.
The strong operating performance was mainly driven by new contribution from The Minster Building in London, and higher income from Suntec City Office and Suntec City Mall.

2. With a 16.9% YoY increase in DPU to unitholders in 1Q22, how does Suntec REIT plan to sustain DPU growth for unitholders?

Suntec REIT will continue to exercise proactive lease management to enhance resilience and sustain revenue growth across our portfolio.
Our Singapore office portfolio is expected to remain strong, driven by the cumulative positive rent reversion achieved in the past 15 quarters, and the full impact of revenue from leases committed in FY21. The major easing of restrictions and reopening of borders also increased optimism about the continued recovery of the retail and convention businesses compared to a year ago.
Long lease tenures and strong occupancy across our overseas properties in Australia and the UK will also provide stability to support income growth.


10 in 10 with Suntec REIT - Gearing up for Reopening