SUNTEC REIT OUTPERFORM

EARNINGS AT A GLANCE
Q3 Gross Revenue: +2% to S$62.2 mln
Income for Distribution: -3% to S$46.2 mln
DPU: -14% to 2.502 cents

EARNINGS COMMENTARY
Suntec REIT’s manager says the increase in gross revenue was mainly due to the higher office revenue achieved during the quarter. Its gross office revenue was S$30 mln, which was 5% higher year-on-year. This was mainly due to higher rental income achieved for Suntec City office. Suntec City office contributed about S$27.8 mln in revenue whilst Park Mall office contributed S$2.2 mln in revenue for the quarter.

OUTLOOK
The trust manager says the pickup in confidence seen in Singapore’s business climate is expected to buoy a favourable outlook for the office market for the rest of the year.

~INVESTOR CENTRAL’S TAKE~
Suntec REIT’s current ratios (by Reuters):
P/E: -
P/B: 0.87
Free cashflow for FY2009: S$26.4 mln

REUTERS CONSENSUS FORECAST
Analysts surveyed by Reuters have on average an OUTPERFORM call on the stock. It was last traded at S$1.56.