0409 GMT - Suntec REIT's 2024 distribution per unit could fall 16% onhigher debt costs and lower occupancy rates for its The Minster Building in the U.K., UOB Kay Hian analyst Jonathan Koh says in a research report. The Singapore-listed REIT's aggregate leverage is high at 42.6%, the proportion of its borrowings hedged to fixed rates is low at 55% and its financing costs rose 0.14 percentage points on quarter to 3.78% in 3Q, the analyst notes. Occupancy at The Minster Building dropped 12.7 percentage points on quarter to 87.3% in 3Q owing to default by a co-working operator, the analyst adds. The brokerage lowers the unit's target price to S$1.12 from S$1.30 with an unchanged hold rating. Units are unchanged at S$1.11. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
October 26, 2023 00:10 ET (04:10 GMT)
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