Suntec Real Estate Investment (T82U) AI Stock Analysis

• Market Cap: $3.35B
• Dividend Yield: 5.48%
• Average Volume (3M): 2.54M
• Price to Earnings (P/E): 29.5
• Beta (1Y): 0.72
• Revenue Growth: -1.16%
• EPS Growth: -34.74%
• Country: SG
• Employees: 1,300
• Sector: Real Estate
• Sector Strength: 73
• Industry: REIT - Diversified
• EPS (TTM): N/A
• Shares Outstanding: 2,937,832,500
• 10 Day Avg. Volume: 4,458,830
• 30 Day Avg. Volume: 2,542,246
• PEG Ratio: 0.00
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.67
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1.24
• Price Target Upside: 8.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: S$1.00 ▼(-12.28%Downside)

Suntec Real Estate Investment's overall stock score is primarily driven by its solid financial performance and stable cash flow generation. Valuation concerns arise due to a high P/E ratio, although the attractive dividend yield offers some compensation. Technical indicators suggest a neutral market sentiment.

Suntec Real Estate Investment Business Overview & Revenue Model

Company Description

Listed on 9 December 2004, Suntec REIT holds properties in Suntec City, Singapore's largest integrated commercial development (including one of Singapore's largest shopping Mall), a 66.3% interest in Suntec Singapore Convention & Exhibition Centre, a one-third interest in One Raffles Quay, a one-third interest in Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall, and a 30.0% interest in 9 Penang Road. Suntec REIT holds a 100% interest in a commercial building located at 177 Pacific Highway, Sydney, a 100% interest in a commercial building located at 21 Harris Street, Pyrmont, Sydney, a 50.0% interest in Southgate Complex, Melbourne, a 50.0% interest in a commercial building located at Olderfleet 477 Collins Street, Melbourne and a 100% interest in a commercial building located at 55 Currie Street, Adelaide, Australia. Suntec REIT also holds a 50.0% interest in Nova Properties located in London, United Kingdom. Its aim is to invest in income-producing real estate which is primarily used for office and/or retail purposes. Suntec REIT is managed by an external manager, ARA Trust Management (Suntec) Limited.

How the Company Makes Money

Suntec REIT generates revenue primarily through the leasing of retail and office spaces. Its income streams come from rental income from tenants in its portfolio of properties, including retail malls, office buildings, and integrated developments. The trust also earns from car park operations and advertising spaces within its properties. Suntec REIT aims to maximize its earnings by maintaining high occupancy rates, optimizing rental rates, and undertaking value-enhancing asset enhancement initiatives. Additionally, income diversification across geographically diverse holdings in Singapore, Australia, and the UK helps stabilize revenue streams. The trust's strategic partnerships and joint ventures in property development projects further contribute to its earnings potential.

Suntec Real Estate Investment Financial Statement Overview

Summary

Suntec Real Estate Investment demonstrates solid financial health with stable profitability and efficient cash generation. The balance sheet reflects a well-managed capital structure with moderate leverage. Revenue fluctuations pose a risk, but overall, the company maintains a strong financial position suitable for navigating industry dynamics.

Income Statement

Suntec Real Estate Investment has demonstrated robust profitability, showing a stable gross profit margin with an increase in net profit margin due to consistent net income figures. However, revenue growth has been inconsistent, with a decline noted in the most recent year. The EBIT margin dropped significantly due to zero EBIT reported in the latest year, but EBITDA margin remains healthy, reflecting operational efficiency.

Balance Sheet

The company maintains a strong equity base, with a moderate debt-to-equity ratio, suggesting manageable leverage. Return on Equity (ROE) is solid, although slightly impacted by the static net income. The equity ratio is stable, indicating a strong asset base supported by equity financing, reducing financial risk.

Cash Flow

Cash flow from operations remains strong, supporting stable free cash flow. The free cash flow to net income ratio indicates efficient conversion of earnings into cash. The operating cash flow to net income ratio is favorable, showcasing effective cash generation relative to net earnings. Free cash flow growth is steady, although not significantly expansive.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
636.94M	462.74M	498.74M	427.27M	358.07M	315.39M
	Gross Profit
363.60M	303.90M	294.11M	313.64M	250.32M	202.30M
	EBIT
316.32M	242.47M	280.59M	592.55M	553.02M	23.38M
	EBITDA
280.94M	366.46M	210.81M	593.24M	553.80M	24.16M
	Net Income Common Stockholders
251.10M	185.38M	185.38M	476.81M	476.44M	-115.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
186.86M	231.34M	217.93M	269.61M	268.31M	227.47M
	Total Assets
11.10B	10.95B	11.13B	11.71B	11.69B	11.23B
	Total Debt
4.24B	4.21B	4.26B	4.84B	4.92B	4.83B
	Net Debt
4.05B	3.98B	4.04B	4.57B	4.65B	4.60B
	Total Liabilities
4.50B	4.47B	4.55B	5.13B	5.19B	5.12B
	Stockholders Equity
6.47B	6.35B	6.46B	6.46B	6.40B	6.03B
Cash Flow		Free Cash Flow
300.00M	241.99M	240.71M	270.09M	235.42M	-27.82M
	Operating Cash Flow
301.27M	254.58M	252.02M	284.18M	243.73M	212.08M
	Investing Cash Flow
150.10M	174.73M	698.15M	114.77M	-82.68M	-1.15B
	Financing Cash Flow
-474.30M	-414.21M	-1.00B	-383.59M	-116.94M	991.44M

Suntec Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:T82U, the sentiment is Positive. The current price of 1.14 is above the 20-day moving average (MA) of 1.13, above the 50-day MA of 1.13, and below the 200-day MA of 1.16, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.77 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:T82U.

Suntec Real Estate Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
T82U	67 Neutral	$3.35B	29.46	1.86%	5.48%	-1.16%	-34.74%
Sector *	61 Neutral	$2.85B	10.99	0.40%	6.10%	5.75%	-21.23%
KREVF		$2.63B	36.28	2.02%	5.90%	―	―
FSRPF		$2.55B	13.71	2.80%	3.65%	―	―
MAPIF		$4.34B	16.65	6.85%	6.83%	―	―
SPHEF		$2.16B	34.72	11.74%	1.24%	―	―
FRLOF		$2.40B	25.14	3.21%	4.50%	―	―

Suntec Real Estate Investment Corporate Events

Suntec REIT Prices S$250 Million Perpetual Securities to Bolster Financial Flexibility

Suntec REIT has announced the pricing of S$250,000,000 in fixed rate subordinated perpetual securities under its U.S.$2,000,000,000 Euro Medium Term Securities Programme. This strategic move, managed by DBS Bank Ltd. and Oversea-Chinese Banking Corporation Limited, is expected to enhance Suntec REIT’s financial flexibility and strengthen its capital structure, potentially impacting its market positioning and providing stakeholders with a stable distribution rate of 4.48% per annum until 2030.

The most recent analyst rating on (SG:T82U) stock is a Hold with a S$1.15 price target. To see the full list of analyst forecasts on Suntec Real Estate Investment stock, see the SG:T82U Stock Forecast page.

Suntec REIT Convenes Annual General Meeting with Key Stakeholders

Suntec Real Estate Investment Trust held its Annual General Meeting at the Suntec Singapore Convention & Exhibition Centre, attended by unitholders and the board of directors. The meeting was chaired by Ms. Chew Gek Khim, with key management figures present, highlighting the company’s commitment to transparency and stakeholder engagement.

Suntec REIT Prepares for 2025 Annual General Meeting

Suntec Real Estate Investment Trust announced the details of its upcoming Annual General Meeting scheduled for April 17, 2025, where it will address substantial and relevant questions from unitholders and the Securities Investors Association (Singapore). The meeting will be held physically at the Suntec Singapore Convention & Exhibition Centre, and the company has made its financial results for the year ending December 31, 2024, available on its website. This announcement underscores Suntec REIT’s commitment to transparency and stakeholder engagement, potentially impacting its reputation and investor confidence.

Suntec REIT to Release Q1 2025 Business Updates on April 24

Suntec REIT announced that its business updates for the first quarter ending March 31, 2025, will be released on April 24, 2025, after market close. This announcement is significant for stakeholders as it provides insights into the trust’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.

Suntec REIT Strengthens Board with New Non-Executive Director Appointment

Suntec Real Estate Investment Trust has announced the appointment of Mr. Matthew James Lawson as a Non-Executive Director, effective from March 21, 2025, following regulatory approval. Mr. Lawson, currently the Chief Operating Officer of ESR Group Limited, brings extensive real estate expertise to the board, which is expected to enhance the board’s capabilities and diversify its expertise, potentially strengthening Suntec REIT’s strategic positioning in the market.

Suntec REIT Launches S$175 Million Notes for Strategic Financial Flexibility

Suntec REIT has announced the launch and pricing of S$175 million 3.40% notes due 2031 under its US$2 billion Euro Medium Term Securities Programme. The proceeds from this issuance will be used for general corporate purposes, refinancing existing borrowings, and financing acquisitions or asset enhancements, potentially impacting the company’s financial flexibility and growth strategy.