SINGAPORE – Suntec Real Estate Investment Trust reported distributable income of S$116.5 million for the six months ended Jun 30, up 25.5% year-on-year, as firmer contributions from its Singapore office and retail assets offset softer results in Australia and the United Kingdom.

The higher earnings lifted distribution per unit to 3.936 Singapore cents, 24.8% above the year-ago period. The trust did not specify the payment date of the interim distribution.

The rebound was driven mainly by Suntec City Mall and the Singapore office portfolio, where occupancy stayed high and recent quarters of positive rent reversions flowed through to topline growth. Lower financing costs and a reduced provision for Australian withholding tax—after the vehicle retained its Managed Investment Trust status—also supported the bottom line.

Segmentally, Singapore operations outperformed. Retail income benefited from completed asset-enhancement works at Suntec City Mall, while the office portfolio continued to enjoy tight vacancies against limited new supply in the core central business district. By contrast, the UK portfolio was weighed down by the expiry of a tenant lease at The Minster Building in mid-June 2025, and Australian offices faced muted tenant demand in Melbourne and Adelaide. The absence of last year’s one-off compensation for the surrender of three floors at 177 Pacific Highway in Sydney also created a high base for comparison.

Looking ahead, management expects the Singapore office market to remain resilient, projecting near-5% positive rent reversion for full-year 2026. For retail, a healthy labour market, rising household incomes and marquee events such as the F1 Singapore Grand Prix and a BTS concert are seen supporting consumer spending, with full-year rent reversion at Suntec City Mall forecast at close to 10%.

The trust will continue proactive leasing in Australia, including fitted-out suites and subdivided spaces, to preserve occupancy in a tenant-led market. In London, improving enquiries at The Minster Building are expected to help narrow vacancies in the second half.

Chief executive officer Chong Kee Hiong said the results underscore the resilience of the diversified portfolio and the benefits of earlier asset upgrades. He added that the manager remains focused on long-term value creation through disciplined capital management and active portfolio initiatives.