Suntec REIT derived its income from Office, Retail, and Hospitality sector. The above chart shows sector weightage by NPI. And NO, Suntec REIT does not own any hotel, but it owns convention centre. I’ve classified convention centres under Hospitality sector as its purpose is similar to event halls in hotels. Suntec REIT is currently 1 of the 5 stocks in STI reserve list.
Occupancy is high at 98.7%. WALE is short at 3.09 years where its highest lease expiry of around 25% is in the year 2021. Weighted average land lease expiry is slightly longer than SREITs median.
Gearing is high at 39.9%. Cost of debt of 2.9% is at median level despite high unsecured debt of 90%. Fixed rate debt is low at 65% which is favorable in the current low interest environment. Interest cover is quite low at only 2.7 times. WADE is long at 3.36 years where its highest expiry of 30% is in FY2024.