Chairman's Message

Dear Unitholders,

Suntec REIT delivered yet another set of stable results in FY 2018. The distributable income of S$266.8 million was 1.4% higher year-on-year. The distribution per unit ("DPU") of 9.988 cents was marginally lower than 2017’s DPU of 10.005 cents due to the enlarged unit base. During the year, we increased our interest in Southgate Complex, Melbourne from 25.0% to 50.0%. As at end 2018, our assets under management ("AUM") stood at S$9.9 billion with our Australian assets constituting approximately 10.5% of the total AUM. In 2018, Suntec REIT raised S$1.2 billion to refinance loans, pay for the increased stake in Southgate Complex as well as for progressive payments for Olderfleet, 477 Collins Street in Melbourne.


The distributable income of S$266.8 million was S$3.8 million higher year-on-year. This was due to the higher contribution from our increased interest in Southgate Complex, better performance from Suntec City Mall and Suntec Singapore, and higher capital distribution of S$39.0 million. This improved contribution was offset by higher financing costs and lower income from Suntec City Office as there was some transitory downtime as replacement leases were being secured.

The office and retail portfolios continued to perform well in 2018 with occupancies of 98.7% and 99.1% respectively as at 31 December 2018.

Our strategy of active asset management has enabled us to maintain our Singapore office portfolio occupancy at a rate above market, with the committed occupancy of our Singapore office portfolio at 98.5% as compared to the overall CBD Grade A occupancy of 92.9% as at 31 December 2018.

In Australia, the committed occupancy for our office portfolio improved to 99.4% as at 31 December 2018. As a result of our proactive lease management, lease expiries for 2019 were reduced to 8.2% of net lettable area.

On the retail front, the repositioning of Suntec City Mall, with its strengthened tenant mix and enhanced retail experience, has entrenched Suntec City in the minds of many shoppers. In 2018, Suntec City’s footfall increased by 4.8% to 47.0 million and tenants’ sales registered a 5.2% increase from 2017.

Ms Chew Gek Khim
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