Suntec REIT: 2Q26 takeaways – asset recycling opportunities

Research evidence excerpt

Suntec REIT: 2Q26 takeaways – asset recycling opportunities

J P M O R G A N Asia Pacific Equity Research

24 July 2026

Suntec REIT Overweight

SUNT.SI, SUN SP

2Q26 takeaways – asset recycling opportunities Price (23 Jul 26):S$1.51

Price Target (Jun-27):S$1.60

Key highlights from SUN’s 2Q26 results (link) briefing include 1) asset recycling Singapore/ASEAN Property and

opportunities, 2) capital management following the perp redemption, 3) leasing REITs

momentum, 4) strategic review expectations, and 5) the outlook for Singapore office Terence M Khi AC

and retail reversions. (65) 6882-1518

terence.ml.khi@jpmorgan.com

Improving Australian transaction markets support asset recycling plans. Mervin Song, CFA

Management highlighted increasing liquidity in Australia, with core funds and (65) 6882-7829

superannuation investors returning and assets transacting around book value. SUN mervin.song@jpmorgan.com

continues to evaluate divestments of mature, stabilized Australian assets, with timing J.P. Morgan Securities Singapore Private Limited/

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

dependent on cap rates, interest rates and market conditions. Proceeds could be Morgan Broking (Hong Kong) Limited

redeployed into more accretive Singapore opportunities over time.

ORQ a more likely divestment candidate in Singapore. While the key intent is to

divest Australian assets to redeploy capital back to Singapore, management also

identified ORQ as the lowest-yielding Singapore asset due to tax leakage and

indicated it could be divested if proceeds can be redeployed into more accretive

Singapore assets. ORQ would likely rank ahead of MBFC as a divestment candidate,

according to the company. Acquisition hurdles remain disciplined, with management