Suntec REIT’s Singapore Office Portfolio Performed Well In Q1
SINGAPORE – The performance of Suntec REIT’s Singapore office portfolio remained healthy during the 1st quarter of the year, according to its latest business update published on the local bourse on Tuesday morning (26 April, SGT).
For instance, while the gross revenue of Suntec City Office dipped by 1.5 percent to S$32.8 million in Q1 2022 from S$33.3 million in the same period a year ago, the asset’s net property income rose by 4.4 percent from S$24.9 million to S$26 million.
The combined share of income from Suntec REIT’s joint venture properties – One Raffles Quay,
Marina Bay Financial Centre (MBFC) Tower 1 & 2, and the 9 Penang Road office building – also increased by 27.5 percent from S$16 million to S$20.4 million over the same period. One reason for the higher share of income in the higher occupancy and office rent at One Raffles Quay.
“The office portfolio in Singapore, Australia and the United Kingdom remained resilient, with the Singapore office portfolio achieving positive rent reversion for 15 quarters,” said Chong Kee Hiong, Chief Executive Officer of Suntec REIT’s manager.
“While the positive rent reversion is expected to be moderated due to high expiry rents, Suntec REIT’s office income is expected to remain strong driven by the cumulative positive rent reversion achieved in the past 15 quarters,” noted the manager.
Aside from that, the manager said that Singapore’s office market is slated to benefit from a rosy market outlook, limited office stock, and tight vacancy.
Meanwhile, Suntec REIT revealed that the Suntec City Office Towers obtained the Green Mark Platinum Award from Singapore’s Building and Construction Authority (BCA) during the first quarter of the year.