Recently two of our holdings, Suntec REIT and Apple, had reported their quarterly results. The reason why I had selected these two is because of the mixed reactions to the published figures. Let us take a brief look at each of the counters.
Suntec REIT
In a recent announcement, Suntec REIT had recorded a 27.4% decline in distribution per unit (DPU, or dividend in REIT speak) for the first quarter of 20231. The reasons cited were higher financing costs, weaker Australian Dollar and Pound Sterling against the Singapore Dollar vis a vis the REIT’s properties in Australia and the United Kingdom, and a lower joint venture income from Marina Bay Financial Centre. This is despite the rise in gross revenue and net property income (NPI) mainly contributed by Suntec City itself. In fact, Suntec REIT had also reported a fall in DPU for the second half of 2022, stating a sharp increase in financing costs for the reason, again...