To The Moon

$SUNTEC REAL ESTATE INV TRUST(T82U.SI)$

We expect Suntec REIT to be a beneficiary of the Singapore government’s reopening efforts, and this should provide a boost to its retail, convention and office segments. Its convention business would need to see larger scale international events before a firmer recovery can happen, while its Singapore office portfolio could register softer positive rental reversions in FY22 as compared to FY21. There also continues to be uncertainties over the longer-term impact of work-from-home trends, although more employers appear to be encouraging their employees to return to office. In Australia and the UK, Suntec REIT’s office portfolio is expected to be resilient. This is underpinned by firm occupancy and long weighted average lease expiry (WALE), coupled with annual rent escalations in Australia. However, currency fluctuations, Suntec REIT’s relatively high aggregate leverage ratio and low interest rate hedges are key risks to monitor.

I will be careful in investing in this stock at the moment due to the weaknesses in the market as well as the weak execution in this REIT. I will wait till further clarity from the REIT results and invest in other REITS such as $ASCENDAS REAL ESTATE INV TRUST(A17U.SI)$which is in a much better position.

DYODD 

@TigerStars