Suntec REIT (SUNT.SI): Strategic Review in 1-2 Months‘ Time

Research evidence excerpt

Suntec REIT (SUNT.SI): Strategic Review in 1-2 Months‘ Time

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24 Jul 2026 05:53:33 ET │ 11 pages

Suntec REIT (SUNT.SI)

Strategic Review In 1-2 Months' Time

CITI'S TAKE

Sell During its 1H26 results virtual briefing this morning, Suntec REIT (SUN)

guided that its Strategic Review (SR) would be undertaken in 1-2 months' Price (24 Jul 26 17:06) S$1.52

time, though asset sales could still take place during the SR. Although no Target price S$1.22

specific asset was cited as a potential divestment target, SUN did say Expected share price return -19.7%

ORQ is its lowest-yielding SG asset and it'd consider if there're Expected dividend yield 4.8%

opportunities to sell and buy SG assets as such an approach would be Expected total return -14.9%

accretive. There are also rising enquiries on AU assets, which could help its

Market Cap S$4,497M ongoing strategy to divest assets in this market. SUN (+5%) has

US$3,477M outperformed S-REITs (-4%) YTD, but given stretched valuations

(4.9/5.0% FY26E/27E yields) and high gearing (43/45%

excluding/including perps), we maintain our Sell rating.

Brandon LeeAC

+65-6657-1118

brandon2.lee@citi.com

• Strategic Review in 1-2 months' time - SUN expects to undertake its SR in

next 1-2 months and doesn't need the appointment of another

Independent Director (ID; to-be-appointed soon) to start the SR, though it

said it would like the Board to be majority independent. Post the

appointment of Madam Chen Huaidan @ Celine Tang on 10-Jul-26, we

note SUN's Board comprises 3 IDs and 3 Non-IDs. Direction-wise, it's still

business as usual, with SUN remaining focused on selling assets in

Australia and strata units in Suntec City Office (SCO), which can take place

even during the SR. In fact, SUN doesn't think the SR would go against the