I still retain a small position in Suntec REIT at a cost price of about S$1.00 a unit which I purchased towards the tail end of the last financial crisis. This small position is free of cost, actually, since the gain from selling most of my investment in the REIT more than covers its cost. For me, this is what some would call a pillow stock. Sleep on it and get free money.
Gearing: 37.4%
Interest cover ratio: 4.2x
Credit rating: Baa2
NAV/unit: $1.962
DPU: 2.453c (XD 30 April. Payable on 29 May.)
Would I add to my long position or would I sell? I would not be doing either. The REIT's unit price at $1.285 is not expensive but neither is it cheap. So, I am keeping the status quo.
Although the office market remained subdued in the first quarter of 2012, the trust said its overall committed occupancy for the office portfolio enjoyed a strong occupancy of 99.4 per cent as at 31 March 2012.
Committed occupancy for the retail portfolio stood at 97.3 per cent as at 31 March 2012.
The trust is starting asset enhancement works at Suntec City, which is expected to complete by the second quarter of 2013.
Several established brands have signed up for retail space in the newly refurbished Suntec City Mall, including Swedish clothing giant H&M, which will take up 20,000 square feet.
Another major international fashion retailer has also committed approximately 22,000 sq ft with the mall.
In the coming year, the trust said it will focus on the smooth execution of its refurbishment works for Suntec City Mall as well as maintain a high occupancy level for the rest of the mall.
Source:
CNA, 24 April 2012.
See slides presentation:
here.
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