Suntec Real Estate Investment Trust · SGX:T82U
Suntec Real Estate Investment Trust — Suntec REIT — FY2024 Earnings Presentation
64 slides from Suntec Real Estate Investment Trust's earnings presentation, Jan 23, 2025
Slide 1: Suntec REIT Financial Results
SUNTEC REIT FINANCIAL RESULTS For the 2H and Financial Year ended 31 December 2024 23 January 2025
Slide 2: Agenda
03 20 FY 24 Financial Overview Singapore Office Portfolio Performance 04 30 FY 24 Operational Overview Australia Portfolio Performance 05 35 Financial Highlights UK Portfolio Performance 16 37 Capital Management Singapore Retail Portfolio Performance Agenda 46 Suntec Convention Performance 51 Our ES
Slide 3: FY 24 Financial Overview
FY 24 Financial Overview Distributable Income from Operations1 to Unitholders Divestment Capital Management $180.9 million Divested $58.3 million of Refinanced $950 million -1.6% y-o-y strata units2 at Suntec City Due in FY 2024 & FY 2026 Office Towers at 24% above Interest Savings of Distribution P
Slide 4: FY 24 Operational Overview
FY 24 Operational Overview Portfolio Committed Portfolio Portfolio Rent Occupancy WALE Reversion 95.4% 3.8 years +10.6% vs 94.9% (FY 23) vs 4.2 years (FY 23) vs +13.2% (FY 23) Office 97.9% 2.3 years +22.9% vs 95.2% (FY 23) vs 2.1 years (FY 23) vs +21.5% (FY 23) Retail 4
Slide 5: Financial Highlights
Suntec City MBFC Properties One Raffles Quay Olderfleet, 477 Collins Street Financial Highlights The Minster Building 177 Pacific Highway 55 Currie Street Nova Properties 21 Harris Street Southgate Complex
Slide 6: SG Properties Provide Strong Support to Portfolio Performance
SG Properties Provide Strong Support to Portfolio Performance Gross Revenue (S$ mil) NPI (S$ mil) JV Income1,2,3 (S$ mil) Gross Revenue & Net Property Income: Higher gross revenue due to stronger operating 0.9M or 0.2% performance at Suntec City Office and Suntec City Mall; offset by lower occupancy
Slide 7: DI and DPU from Operations Remained Resilient
DI and DPU from Operations Remained Resilient Distributable Income (S$ mil) DPU (SG cents) (25.9M or 12.5%) (0.943¢ or 13.2%) Completion of capital distribution ($23.0m) 206.8 7.135 Vacancies at 55 Currie Street and The Minster Building 23.0 180.9 0.794 6.192 Higher financing cost ($6.1m) 2H 94.8 92
Slide 8: Distribution Payment
Distribution Payment Distribution Payment Distribution Period 1 October 2024 – 31 December 2024 Amount (cents/unit) 1.5701,2 Ex-date 3 Feb 2025 Record date 4 Feb 2025 Payment date 28 Feb 2025 Note: 1. Total of 6.192 cents for FY 2024. 2. The Manager continues to receive 50% of its asset management f
Slide 9: Singapore Office Portfolio Continued to Strengthen
Singapore Office Portfolio Singapore Office Portfolio Continued to Strengthen Gross Revenue (S$ mil) NPI (S$ mil) JV Income (S$ mil) Gross Revenue & Net Property Income: 0.7M or 1.0% Higher rent at Suntec City Office 0.5M or 0.9% JV Income: Higher rent and occupancy at MBFC Properties 72.7 73.4 2.9M
Slide 10: Australia Portfolio Performance Stable
Australia Portfolio Australia Portfolio Performance Stable A$ mil S$ mil1 Gross Revenue NPI Gross Revenue NPI Gross Revenue & Net Property Income: (0.1M or 0.2%) Lower gross revenue due to lower (0.5M or 1.1%) occupancy at 55 Currie Street, mitigated (0.6M or 1.6%) by higher occupancy at 177 Pacific
Slide 11: UK Portfolio Impacted by Vacancy at The Minster Building
UK Portfolio UK Portfolio Impacted by Vacancy at The Minster Building £ mil S$ mil1 Gross Revenue NPI Gross Revenue NPI (1.1M or 14.1%) (1.8M or 13.5%) (1.7M or 14.2%) Gross Revenue & Net Property Income: (1.1M or 15.5%) Lower occupancy at The Minster Building 7.8 6.7 7.1 13.3 11.5 12.0 6.0 10.3 2H
Slide 12: Singapore Retail Portfolio Performance Improved
Singapore Retail Portfolio Singapore Retail Portfolio Performance Improved Improvement in NPI Moderated by Absence of One-Off Property Tax Refund Gross Revenue (S$ mil) NPI (S$ mil) JV Income (S$ mil) Gross Revenue & Net Property Income: 3.9M or 5.8% Higher gross revenue due to higher rent at Suntec
Slide 13: NPI Improved Due to Lower Cost Events
Suntec Convention NPI Improved Due to Lower Cost Events Gross Revenue (S$ mil) NPI (S$ mil) (4.1M or 10.4%) Lower revenue from MICE as less large-scale events (e.g. World Congress of Dermatology; World Skills ASEAN in 3Q 23) NPI improved due to lower costs from smaller but high yielding events requi
Slide 14: Portfolio Valuation Slight Decline of 1.2%
Portfolio Valuation Slight Decline of 1.2% Valuation Upside from Singapore Properties offset by Decline of Overseas Properties Investment 31 Dec 23 31 Dec 24 1 Against 31 Dec 23 Range of Cap Rates Range of Cap Rates Properties as at 31 Dec 23 as at 31 Dec 24 1 Variance ($) Variance (%) Singapore S$9
Slide 15: Diversified Portfolio Across Geography and Sector
Diversified Portfolio Across Geography and Sector Singapore Market and Office Properties Are Mainstays Income Contribution by Geography AUM Breakdown by Geography 10% 12% 12% 16% 72% 78% Singapore Australia UK Singapore Australia UK Income Contribution by Sector AUM Breakdown by Sector 21% 24% 5% 2%
Slide 16: Capital Management
Capital Management Olderfleet, 477 Collins Street, Melbourne
Slide 17: Key Financial Indicators
Key Financial Indicators As at 31 Dec 23 As at 31 Dec 24 NAV Per Unit $2.10 $2.05 Total Debt Outstanding $4,277 mil $4,227 mil Aggregate Leverage Ratio1 42.3% 42.4% Weighted Average Debt Maturity 3.00 years 2.83 years All-in Financing Cost2 3.84% p.a. 4.06% p.a.3 Weighted Average Interest Maturity 2
Slide 18: Completed $950 Million of Refinancing Due in FY 2024 and FY 2026
Completed $950 Million of Refinancing Due in FY 2024 and FY 2026 Interest Savings of ~ $3.1 million p.a. Debt Maturity Profile Perpetual Securities 1400 (First Reset) 1000 1200 800 1000 800 Completed 600 680 $950 million 600 refinancing 700 1150 191 400 400 300 291 200 200 366 221 200 200 150 128 0
Slide 19: FY24 Office Portfolio Performance
FY24 Office Portfolio Performance Committed Occupancy Rent Reversion4 Retention Rate 98.7%1 +10.3% 72% Singapore vs 99.7% (FY 23) 90.9%2 +11.9% 52% Australia vs 88.6% (FY 23) 95.1%3 UK vs 93.5% (FY 23) Notes: 1. Based on Suntec REIT’s interests in Suntec City Office, One Raffles Quay and Marina Bay
Slide 20: Singapore Office Portfolio Performance
Singapore Office Portfolio Performance 20 One Raffles Quay, Singapore
Slide 21: High Occupancy with Well Balanced Lease Expiry Profile
Singapore Office Portfolio High Occupancy with Well Balanced Lease Expiry Profile Committed Occupancy Lease Expiry Profile As at 31 Dec 24 % of Total NLA2 Comparison Core CBD Occupancy: 94.7%1 1.3% 98.8% 98.7% 98.5% 98.7% 28.2% 24.2% 19.7% 18.8% 4.8% 3.0% Suntec City One Raffles MBFC Towers Singapor
Slide 22: Strong Rent Reversion Continued
Singapore Office Portfolio Strong Rent Reversion Continued 26 Quarters of Positive Rent Reversion Rent Reversion Work Done1 +10.3% for FY 24 500,800 sq ft in FY 24 72% 72% 12.9% 11.4% 9.0% 7.9% 28% 28% 1Q 24 2Q 24 3Q 24 4Q 24 FY 23 FY 24 Renewal Leases New Leases Note: 1. Reflects net lettable area
Slide 23: Suntec City Office Performance
Suntec City Office Performance Suntec City Office, Singapore
Slide 24: Occupancy and Rent Surpassed Market Levels
Suntec City Office Occupancy and Rent Surpassed Market Levels Suntec 4Q 24 $10.24 CBRE $9.35 $9.85 $10.02 $10.11 $10.15 Core CBD 100.0% $9.25 $8.84 $8.95 $10 95.0% 90.0% $9 85.0% $8 80.0% $7 99.9% 100% 100% 99.9% 75.0% 97.2% 99.4% 98.8% 95.6% 94.7% $6 70.0% 65.0% $5 60.0% $4 55.0% $3 50.0% FY 20 FY
Slide 25: Robust Rent Reversion With High Tenant Retention
Suntec City Office Robust Rent Reversion With High Tenant Retention Rent Reversion Work Done1 +10.3% for FY 24 396,600 sq ft in FY 24 14.0% 71% 72% 10.8% 7.9% 8.6% 29% 28% 1Q 24 2Q 24 3Q 24 4Q 24 FY 23 FY 24 Renewal Leases New Leases Note: 1. Reflects net lettable area of new leases and renewals com
Slide 26: Current Achieved Rents Above 2025 Expiring Rents
Suntec City Office Current Achieved Rents Above 2025 Expiring Rents Expiry Rent 100.0% $11.00 $10.58 $10.65 $10.68 90.0% $10.28 $10.12 80.0% $10.00 70.0% 60.0% $9.00 50.0% 40.0% $8.00 30.0% 20.0% $7.00 27.0% 30.6% 10.0% 19.8% 19.0% 2.4% 0.0% $6.00 2025 2026 2027 2028 2029 & Beyond 26
Slide 27: Performance of One Raffles Quay and MBFC Towers 1 & 2
Performance of One Raffles Quay and Marina Business Financial Centre Towers 1 & 2 MBFC Properties, Singapore
Slide 28: Robust Rent Reversion With High Tenant Retention
One Raffles Quay & MBFC Towers 1 & 2 Robust Rent Reversion With High Tenant Retention Rent Reversion Work Done1 +10.5% for FY 24 104,200 sq ft in FY 24 76% 71% 12.0% 10.1% 8.4% 6.8% 29% 24% 1Q 24 2Q 24 3Q 24 4Q 24 FY 23 FY 24 Renewal Leases New Leases Note: 1. Based on Suntec REIT’s interests in One
Slide 29: Singapore Office Outlook and Focus
Singapore Office Outlook and Focus Geopolitical tensions, uncertainty over US trade GDP growth projected to Cautious demand policies and potential range from 1 to 3%, despite rising return-to- slowdown in global growth lower than the ~4% office trend and limited weigh on Singapore’s growth in 20241
Slide 30: Australia Portfolio Performance
Australia Portfolio Performance 55 Currie Street, Adelaide
Slide 31: Portfolio Occupancy Outperformed Market
Australia Portfolio Portfolio Occupancy Outperformed Market Southgate Occupancy Improved Committed Occupancy Rent Reversion As at 31 Dec 24 +11.9% for FY 24 84.8% Work Done2 84.5% 145,000 sq ft in FY 24 84.4% 80.2% 100% 100% 100% 90.1% 90.9% 61.4% 82% 177 Pacific 21 Harris 477 Collins Southgate 55 C
Slide 32: Well Spread Lease Expiry Profile
Australia Portfolio Well Spread Lease Expiry Profile Lease Expiry Profile % of Total NLA1 Comparison 40.8% 9.1% 19.9% Lease expiries at 55 Currie Street, 11.1% Southgate 6.8% 5.9% 6.4% Complex and 477 Collins Street 2025 2026 2027 2028 2029 2030 & Beyond Vacant NLA Expiries WALE 4.4 years Notes: 1.
Slide 33: Australia Outlook and Focus
Australia Outlook and Focus Market vacancy in Incentives in Melbourne GDP growth remains Melbourne and Adelaide and Adelaide expected to subdued at 0.8%1 remain elevated at 19.8% remain in the range of and 15.8% respectively2 40% to 45% Weak demand in Portfolio’s committed Adelaide with vacancy at o
Slide 34: UK Portfolio Performance
UK Portfolio Performance 34 Nova Properties, London
Slide 35: Occupancy Eased due to Vacant Floor at The Minster Building
UK Portfolio Occupancy Eased due to Vacant Floor at The Minster Building Committed Occupancy Lease Expiry Profile As at 31 Dec 24 % of Total NLA2 Comparison 74.4% of lease expiries will be in Central 2029 and beyond if tenants do London Office not exercise lease breaks Occupancy: 91.4%1 3.8% 99.6% 9
Slide 36: UK Office Outlook and Focus
UK Office Outlook and Focus Central London occupancy and rental Good quality office space 2025 GDP growth growth expected to in prime locations forecast at 1.8%1, higher than 2024 at ~1.0% improve due to tight continue to be sought supply and increase in after office utilisation2 Vacancy and upcomin
Slide 37: Singapore Retail Portfolio Performance
Singapore Retail Portfolio Performance Suntec City, Singapore
Slide 38: Portfolio Committed Occupancy Remained Stable
Singapore Retail Portfolio Portfolio Committed Occupancy Remained Stable Committed Occupancy Lease Expiry Profile As at 31 Dec 24 % of Total NLA2 Comparison Central Area Outside Orchard occupancy: 1.7% 91.8%1 98.4% 94.4% 98.3% 31.5% 22.8% 20.4% 9.5% 7.7% 6.4% Suntec City Mall Marina Bay Link Overall
Slide 39: Suntec City Mall Performance
Suntec City Mall Performance Suntec City Mall, Singapore
Slide 40: Strong Full Year Results
Suntec City Mall Strong Full Year Results Improvement Across Key Operating Indicators Committed Rent Retention Occupancy Reversion Rate 98.4% +23.2% 65% vs 95.6% (FY 23) Shopper Tenant Occupancy Traffic Sales psf Cost 6.2% Stable 20%-22% y-o-y y-o-y 40
Slide 41: Consecutive Quarters of Strong Rent Reversion
Suntec City Mall Consecutive Quarters of Strong Rent Reversion Rent Reversion Work Done1 +23.2% for FY 24 271,500 sq ft in FY 24 31.9% 69% 65% 21.7% 20.2% 21.2% 31% 35% 1Q 24 2Q 24 3Q 24 4Q 24 FY 23 FY 24 Renewal Leases New Leases Note: 1. Reflects net lettable area of new leases and renewals commit
Slide 42: Diverse Tenant Mix to Attract Footfall
Suntec City Mall Diverse Tenant Mix to Attract Footfall 43 New-to-Market / New-to-Suntec Brands1 in FY 24 New-to-Market1 New-to-Suntec1 Note: 1. Images do not reflect all the leases which commenced operations in FY 24. 42
Slide 43: Strategic Marketing Partnerships Forged in 2024
Strategic Marketing Partnerships Forged in 2024 Improved Mindshare Amongst Shoppers and Partners Despicable Me 4 June School Holidays Campaign LEGO Lunar New Year Campaign Key partnership with Yuu as Yuu’s first and only mall partner – Shoppers can earn double rewards when they shop, dine and play a
Slide 44: FY 24 Shopper Traffic Improved with Steady Tenant Sales
Suntec City Mall FY 24 Shopper Traffic Improved with Steady Tenant Sales Traffic YoY Variance Tenant Sales psf ($) YoY Variance -2% 140,000 2019 Avg 60.0 Daily +5% -1% -1% 0% +5% +6% +9% +5% +6% Traffic 120,000 50.0 2019 Avg Tenant Sales psf 100,000 Tenant Sales psf ($) 40.0 ($) Avg Daily Traffic 80
Slide 45: Singapore Retail Outlook and Focus
Singapore Retail Outlook and Focus Consumers expected to MICE events and positive Rent growth and remain cost-cautious tourism outlook continue occupancy underpinned with an uncertain global to drive traffic and tenant by healthy demand and economic outlook sales1 limited supply1 Positive rent rever
Slide 46: Suntec Convention Performance
Suntec Convention Performance Suntec Singapore
Slide 47: Strong Standing at the World Travel Awards
Suntec Convention Achieved Strong Standing at the World Travel Awards for the Second Consecutive Year World Congress of Abdominal Wall Singapore’s Best World’s Leading Hernia Surgery 2024 gamescom Asia 2024 17 Oct – 20 Oct Convention Hi-Tech Meeting 9 – 12 Oct Centre & Convention Centre New Events t
Slide 48: Suntec Convention Outlook and Focus
Suntec Convention Outlook and Focus More event organisers plan to Singapore MICE market do events with shorter expected to grow at a 9% duration and hybrid events CAGR1 (2023-2030) compared to pre-COVID period1 Grow alternative revenue Stable performance expected opportunities such as as composition
Slide 49: Capital Management Outlook
Capital Management Outlook The Minster Building, London
Slide 50: Capital Management Outlook and Focus
Capital Management Outlook and Focus Interest rates easing To evaluate to re-price cycle in major or refinance the S$200m economies expected to Perpetual Securities due be gradual1 in October 2025 Maintaining interest rate All-in financing cost Refinancing of loans and foreign currency expected to i
Slide 51: Our ESG Commitment
Our ESG Commitment 177 Pacific Highway, Sydney
Slide 52: ESG Initiatives
ESG Initiatives Art & Sustainability Exhibition – MBFC Beach Clean Up with Tenants from MBFC Blood Donation Drive – Suntec City Properties Properties and ORQ International Women’s Day awareness free Toy Donation Drive – Suntec City Purple Parade – Suntec City skin check for tenants – 55 Currie 52
Slide 53: Continual Commitment to ESG
Continual Commitment to ESG Achievements All Properties GREEN BUILDING CERTIFIED CARBON NEUTRAL Obtained “B” EPC 6 Properties achieved Highest 21 Harris Street ENERGY RATING for The Certifications - 177 Pacific Highway Minster Building Platinum or 6-Star Rating 55 Currie Street Attained highest GRES
Slide 54: Roadmap Towards Net-Zero Carbon Emission Target by 2050
Roadmap Towards Net-Zero Carbon Emission Target1 by 2050 All properties are Net-Zero carbon Green Certified emissions1 for all properties 4 properties on 100% 100% Renewable Energy: Renewable Energy: Complete electrification 21 Harris, 477 Collins, Southgate Complex of equipment Nova & Minster All S
Slide 55: Thank you
Thank you For enquiries, please contact: Melissa Chow Eugenia Ong Manager, Investor Relations Manager, Portfolio Management Melissa.chow@esr.com Eugenia.ong@esr.com Southgate Complex, Melbourne
Slide 56: Disclaimer
Disclaimer This presentation is focused on the comparison of the financial results for the half year and financial year ended 31 December 2024 versus results achieved for the half year and financial year ended 31 December 2023. The information included in this release does not constitute an offer or
Slide 57: About Suntec REIT
About Suntec REIT 21 Harris Street, Sydney
Slide 58: About Suntec REIT
About Suntec REIT Singapore’s First Composite REIT Market Capitalisation S$3.4 Billion1 London Asset Under Management S$12.1 Billion2 Listed on 9 Dec 2004 on the SGX-ST High quality office properties, complemented Singapore by retail and convention components 10 properties – 3 in Singapore, 2 in Syd
Slide 59: Portfolio Snapshot
Portfolio Snapshot Singapore and UK Properties Suntec City One Raffles MBFC The Minster Nova Properties Suntec City – Suntec Convention Quay Properties Building Office & Retail Description Integrated commercial World-class convention Two premium Two premium Two Grade A Grade A Office development com
Slide 60: Portfolio Snapshot
Portfolio Snapshot Australia Properties 177 Southgate Olderfleet 477 55 Currie Street 21 Harris Street Pacific Highway Complex Collins Street Description 31-storey Grade A office Integrated development Premium Grade, 40- Twelve-storey, Grade A Nine-storey, Grade A building comprising two A-Grade lev
Slide 61: Appendix
Appendix 61 Olderfleet, 477 Collins Street, Melbourne
Slide 62: Singapore Portfolio Increased by S$126.3 million or 1.4%
Singapore Portfolio Increased by S$126.3 million or 1.4% Increase in Valuation for Office and Retail Properties Investment 31 Dec 23 31 Dec 24 1 31 Dec 24 1 Against 31 Dec 23 Cap Rates as at Properties 31 Dec 24 1 Variance Variance ($) (%) Singapore Suntec City Office 2 S$3,272.0M S$3,296.0M S$2,716
Slide 63: Australia Portfolio Decreased by A$201.3 million or 10.5%
Australia Portfolio Decreased by A$201.3 million or 10.5% Cap Rate Expansion of ~60 to 100 bps Investment 31 Dec 23 31 Dec 24 1 31 Dec 24 1 Against 31 Dec 23 Cap Rates as at Properties 31 Dec 24 1 Variance Variance ($) (%) Australia 177 Pacific A$688.0M A$590.0M A$14,738 psm -A$98.0M -14.2% 6.375% H
Slide 64: UK Portfolio Decreased by £7.8 million or 1.2%
UK Portfolio Decreased by £7.8 million or 1.2% Cap Rate Expansion of ~15 to 40 bps Investment 31 Dec 23 31 Dec 24 1 31 Dec 24 1 Against 31 Dec 23 Cap Rates as at Properties 31 Dec 24 1 Variance Variance ($) (%) UK Nova Properties £395.0M £395.0M £1,412 psf - - 5.13% (50%) 2 The Minster £276.9M £269.