Suntec REIT: No Major Surprises in Business Update; Outlook Weakened by US Tariffs

Suntec REIT’s first-quarter 2025 business update was in line with our expectations. Net property income rose 5% year on year on the back of a 3.4% increase in revenue driven by stronger operating performance across all its properties. Distribution per unit increased by 3.4% to SGD 0.0156, making up 24% of our full-year forecast. With no major surprises, we retain our fair value estimate of SGD 1.38 per unit. Although we think the trust is currently undervalued, we prefer Keppel REIT, which offers a more attractive distribution yield of 6.8% in 2025.