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Suntec REIT’s 1Q 2020 Distributable Income Falls 6.5% On COVID-19 Impact

Suntec REIT’s 1Q 2020 Distributable Income Falls 6.5% On COVID-19 Impact

April 22, 2020 — Suntec REIT reports distributable income from operations of S$55.1 million for the period 1 January to 31 March 2020 (“1Q 2020”) which was 6.5% lower than the quarter ended 31 March 2019 (“1Q 2019”). Distribution per unit (“DPU”) to unitholders was 1.760 cents for 1Q 2020.

While the business began well in January 2020, operational performance declined when mandatory measures were put in place to arrest the spread of the novel coronavirus (“COVID-19”). One of the most immediate impact was the postponement and cancellation of events at Suntec Convention which resulted in a loss of dividend contribution from Suntec Singapore. The steep drop in advertising and promotion income for Suntec City Mall and the weakened Australian dollar added to the decline in distributable income from operations. Better performance from Suntec City Office, Suntec City Mall, Southgate Complex and contribution from 55 Currie Street helped to mitigate the impact of the decline that resulted.

Mr. Chong Kee Hiong, Chief Executive Officer of the Manager, said, “As the crisis deepens in the second quarter with continued weakness in the convention and retail business, the Manager has retained 10% of the distributable income from operations and held back its capital distribution in 1Q 2020. This resulted in a DPU of 1.760 cents to unitholders. This is necessary as we need to achieve a balance between providing a reasonable return to unitholders, building cash reserve as well as assisting our tenants to weather this period.”

Full statement here

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