suntec reits q3 results

8/14/2019 Suntec Reits Q3 Results

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Suntec Real Estate Investment Trust2009 Third Quarter Unaudited Financial Statements & Distribution Announcement

Suntec Real Estate Investment Trust (Suntec REIT) is a real estate investment trust constituted by the

Trust Deed entered into on 1 November 2004 (as amended) between ARA Trust Management (Suntec)

Limited as the Manager of Suntec REIT and HSBC Institutional Trust Services (Singapore) Limited as the

Trustee of Suntec REIT.

Suntec REIT was listed on the Singapore Exchange Securities Trading Limited on 9 December 2004.

Suntec REIT owns Suntec City Mall and certain office units in Suntec Towers One, Two and Three and the

whole of Suntec Towers Four and Five, which form part of the integrated commercial development known

as Suntec City. The property portfolio also comprises Park Mall, Chijmes and one-third interest in One

Raffles Quay.

On 30 September 2009, Suntec REIT, through a wholly-owned subsidiary, invested 20 per cent interest in a

joint venture company which owns Suntec Singapore International Convention & Exhibition Centre.

The financial information for the period from 1 January 2009 to 30 September 2009 has not been audited

but has been reviewed by our auditors in accordance with Singapore Standard on Review Engagements

2410. Where appropriate, comparisons are made against the corresponding actual figures for the period 1

January 2008 to 30 September 2008.


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Financial Statements AnnouncementFor financial quarter ended 30 September 2009

2

SUMMARY OF SUNTEC REAL ESTATE INVESTMENT TRUST RESULTS

Footnote:

1. Please refer to Page 15 for the distribution per unit computation.

1/7/09 to

30/9/09

1/7/08 to

30/9/08Change

YTD 1/1/09

to 30/9/09

YTD 1/1/08

to 30/9/08Change

S$'000 S$'000 % S$'000 S$'000 %

Gross Revenue 61,948 61,447 0.8% 191,386 176,643 8.3%

Net property Income 47,044 45,610 3.1% 145,010 134,193 8.1%

Income available for distribution 47,741 43,862 8.8% 141,790 123,505 14.8%

Distribution per unit (cents) 1 2.921 2.854 2.3% 8.816 8.166 8.0%

Annualised distribution per unit (cents) 11.589 11.353 2.1% 11.787 10.907 8.1%

Group


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1 (a)(i) Statement of Total Return and Distribution statement for the Quarter ended 30 September2009

Statement of total return1/7/09 to

30/9/09

1/7/08 to

30/9/08Change

YTD 1/1/09

to 30/9/09

YTD 1/1/08

to 30/9/08Change

S$'000 S$'000 % S$'000 S$'000 %

Gross revenue (a) 61,948 61,447 0.8% 191,386 176,643 8.3%

Maintenance charges (4,134) (4,110) -0.6% (12,401) (12,319) -0.7%

Property management fee (1,754) (1,739) -0.9% (5,458) (5,144) -6.1%

Property tax(b)

(5,384) (5,843) 7.9% (16,805) (12,349) -36.1%

Other property expenses (3,632) (4,145) 12.4% (11,712) (12,638) 7.3%

Property expenses (14,904) (15,837) 5.9% (46,376) (42,450) -9.2%

Net property income 47,044 45,610 3.1% 145,010 134,193 8.1%

Other income(c)

6,894 6,367 8.3% 20,456 19,100 7.1%

Net financing costs(d)

(9,022) (16,922) 46.7% (37,090) (29,345) -26.4%

Amortisation expenses(e)

(6,522) (6,597) 1.1% (19,353) (19,647) 1.5%

Asset management fees (6,942) (7,327) 5.3% (20,666) (20,970) 1.4%

Trust expenses (574) (844) 32.0% (1,756) (2,402) 26.9%

Net income before share of profit of jointly

controlled entity 30,878 20,287 52.2% 86,601 80,929 7.0%

Share of profit of jointly controlled entity 3,645 24,688 -85.2% 7,690 30,369 -74.7%

Total return for the period before taxation 34,523 44,975 -23.2% 94,291 111,298 -15.3%

Net surplus on revaluation of investment

properties - 11,866 -100.0% - 11,866 -100.0%

Total return for the period before

taxation 34,523 56,841 -39.3% 94,291 123,164 -23.4%

Income tax expense(f)

(785) (445) -76.4% (2,111) (1,591) -32.7%

Total return for the period after taxation 33,738 56,396 -40.2% 92,180 121,573 -24.2%

Group


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Nm not meaningful

Footnotes:(a) Gross revenue comprises mainly base rentals, service charges from retail mall and offices, promotion fund

from retail mall and income from rentals of atrium spaces, push carts, kiosks and media spaces.

The higher gross revenue as compared to the actual figure for the corresponding period was mainly due tohigher revenue derived from additional office spaces acquired and replacement and renewal leases.

(b) Property tax for nine months ended 30 September 2009 was higher as compared to the correspondingperiod due to write back of property tax provision in the preceding year.

(c) This relates to the income support received from the vendor, Cavell Limited in relation to the acquisition of aone-third interest in One Raffles Quay Pte Ltd.

Distribution statement1/7/09 to

30/9/09

1/7/08 to

30/9/08Change

YTD 1/1/09

to 30/9/09

YTD 1/1/08

to 30/9/08Change

S$'000 S$'000 % S$'000 S$'000 %

Net income before share of profit of jointly

controlled entity 30,878 20,287 52.2% 86,601 80,929 7.0%

Net effect of non-tax deductible items (g) 14,003 20,689 -32.3% 49,610 36,159 37.2%

Taxable income 44,881 40,976 9.5% 136,211 117,088 16.3%

Dividend income from jointly controlled entity (h) 3,645 3,331 9.4% 7,690 8,008 -4.0%

Income tax expenses (f) (785) (445) -76.4% (2,111) (1,591) -32.7%

Income available for distribution to

Unitholders at end of the period 47,741 43,862 8.8% 141,790 123,505 14.8%

Group


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(d) Included in the net financing costs are the following:

1/7/09 to

30/9/09

1/7/08 to

30/9/08Change

YTD 1/1/09

to 30/9/09

YTD 1/1/08

to 30/9/08Change

S$'000 S$'000 % S$'000 S$'000 %Finance income:

Gain arising from remeasurement of interest rate swaps

(1) - 1,133 Nm 1,514 27,193 -94.4%

Gain arising from remeasurement of convertible bonds(1)

1,636 4,607 -64.5% - 6,996 Nm

Gain arising from the termination of interest rate swaps - 590 Nm - 590 Nm

Interest income

- fixed deposits and current account 8 57 -86.0% 95 225 -57.8%

- interest rate swaps 398 577 -31.0% 1,566 1,937 -19.2%

- loan to jointly controlled entity 3,213 1,710 87.9% 9,451 6,435 46.9%

5,255 8,674 -39.4% 12,626 43,376 -70.9%

Finance expenses:

Loss arising from remeasurement of interest rate swaps(1)

(379) (11,213) 96.6% (475) (27,202) 98.3%

Loss arising from the termination of interest rate swaps - (90) Nm - (90) Nm

Loss arising from remeasurement of convertible bonds(1)

- - Nm (7,280) - Nm

Amortisation of transaction costs (3,208) (2,091) -53.4% (7,630) (5,062) -50.7%

Interest expense

- bank loans and convertible bonds (7,913) (11,049) 28.4% (27,491) (33,895) 18.9%- interest rate swaps (2,777) (1,153) -140.8% (6,840) (6,472) -5.7%

(14,277) (25,596) 44.2% (49,716) (72,721) 31.6%Net financing costs (9,022) (16,922) 46.7% (37,090) (29,345) -26.4%

Group

Nm not meaningful

(1) This relates to the gain/(loss) arising from remeasurement of the interest rate swaps and convertible bonds that hadbeen entered into. This has no impact on distributable income.

(e) This relates to the amortisation of the intangible asset relating to the income support receivable by SuntecREIT (please refer to note(c) above and note 1b(i) below). This amortisation does not have any impact ondistributable income.

(f) This relates to income tax provision on the income support received (see note (c) above).


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(g) Included in the net tax adjustments are the following:

1/7/09 to

30/9/09

1/7/08 to

30/9/08Change

YTD 1/1/09

to 30/9/09

YTD 1/1/08

to 30/9/08Change

S$'000 S$'000 % S$'000 S$'000 %

Non-tax deductible / (chargeable) items:

Amortisation costs 9,730 8,688 12.0% 26,983 24,710 9.2%

Asset management fees payable in units 5,554 5,861 -5.2% 16,532 16,775 -1.4%

Non-tax deductible/(chargeable):

- interest income (567) (118) -380.5% (1,683) (353) -376.8%- (gain)/loss arising from remeasurement ofinterest rate swaps and convertible bonds (1,257) 5,473 Nm 6,241 (6,987) Nm

Temporary differences and other adjustments 543 785 -30.8% 1,537 2,014 -23.7%

Net tax adjustments 14,003 20,689 -32.3% 49,610 36,159 37.2%

Group

Nm not meaningful

(h) This relates to the dividend income received from One Raffles Quay Pte Ltd.


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1 (b)(i) Balance sheet as at 30 September 2009

30/9/09 31/12/08 30/9/09 31/12/08S$'000 S$'000 S$'000 S$'000

Non-current assets

Plant and equipment 55 91 55 91

Investment properties 4,352,326 4,352,000 4,352,326 4,352,000

Intangible asset(a)

41,530 60,883 41,530 60,883

Interest in jointly controlled

entities(b)

973,356 952,128 344,946 348,946

Investment in subsidiaries(c)

- - 536,220 510,992

Derivative assets(d)

2,046 2,227 2,046 2,227

Total non-current assets 5,369,313 5,367,329 5,277,123 5,275,139

Current assets

Trade and other receivables 6,532 7,253 6,532 7,253

Amount due from jointly controlled

entity 3,645 2,760 - -

Amount due from subsidiary - - 3,645 2,760

Derivative assets(d)

- 238 - 238

Cash and cash equivalents 17,894 54,056 17,894 54,056

Total current assets 28,071 64,307 28,071 64,307

Total assets 5,397,384 5,431,636 5,305,194 5,339,446

Current liabilities

Interest bearing borrowings(e)

749,746 823,661 749,746 823,661

Trade and other payables 36,457 39,056 36,457 39,056

Derivative liabilities(f)

2,025 6,081 2,025 6,081

Current portion of security

deposits 20,541 17,257 20,541 17,257

Provision for taxation 5,598 3,487 5,598 3,487

Total current liabilities 814,367 889,542 814,367 889,542

Non-current liabilities

Interest bearing borrowings(e)

1,099,424 1,037,102 1,099,424 1,037,102

Derivative liabilities(f)

11,526 4,968 11,526 4,968

Non-current portion of securitydeposits 41,994 44,026 41,994 44,026

Total non-current liabilities 1,152,944 1,086,096 1,152,944 1,086,096

Total liabilities 1,967,311 1,975,638 1,967,311 1,975,638

Net assets 3,430,073 3,455,998 3,337,883 3,363,808

Unitholders' fundsg

3,430,073 3,455,998 3,337,883 3,363,808

Group Trust


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Footnotes:

(a) This represents the unamortised income support provided by Cavell Limited, the vendor of the one-thirdinterest in One Raffles Quay Pte Ltd, the Groups jointly controlled entity.

(b) In respect of the Group, this relates to the one-third interest in One Raffles Quay Pte Ltd and 20 per centinterest in Harmony Investors Group Limited, the Groups jointly controlled entities. In respect of the Trust,this relates to advances to One Raff les Quay Pte Ltd.

(c) This relates to Comina Investment Limited and Suntec Harmony Pte. Ltd, which are wholly-ownedsubsidiaries of Suntec REIT.

(d) Derivative assets relate to the fair value of the interest rate swaps. Derivative assets of $2.2 million as at31 December 2008 which had been previously classified as current assets have been reclassified to non-current assets following the amendments to Financial Reporting Standard (FRS) 1 Presentation ofFinancial Statements which came into effect on 1 January 2009.

(e) The interest-bearing borrowings are stated at amortised cost.

(f) Derivative liabilities relate to the fair value of the interest rate swaps and convertible bonds. Derivativeliabilities of $5 million as at 31 December 2008 relating to the fair value of the interest rate swaps andconvertible bonds, which had been previously classified as current liabilities have been reclassified tonon-current liabilities following the amendments to FRS 1 (see note (d) above).

(g) Please refer to statement of movements in unitholders funds item 1(d)(i) for details.

1 (b)(ii) Aggregate amount of borrowings and debt securities

30/9/09 31/12/08 30/9/09 31/12/08

S$'000 S$'000 S$'000 S$'000

Amount repayable in one year or less, or on

demand

- Secured(a)

749,746 698,733 749,746 698,733

- Unsecured - 124,928 - 124,928

749,746 823,661 749,746 823,661

Amount repayable after one year

- Secured(b)

34,179 - 34,179 -

- Unsecured(c)

1,065,245 1,037,102 1,065,245 1,037,102

1,099,424 1,037,102 1,099,424 1,037,102

1,849,170 1,860,763 1,849,170 1,860,763

GROUP TRUST

Details of borrowings and collaterals

(a) Suntec REIT has in place secured facilities of S$750.0 million, comprising a S$700.0 million term loanfacility and a S$50.0 million revolving credit facility (RCF), each for a term of five years (the Facilities).The term loan is repayable after five years from 9 December 2004. The RCF had been fully drawn downas at 30 September 2009 (31 December 2008: S$Nil).


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The Facilities are secured on the following:

A first legal mortgage on Suntec City; A first fixed charge over the central rental collection account in relation to Suntec City; An assignment of Suntec REITs rights, title and interest in the property management agreement in

relation to Suntec City; An assignment of Suntec REITs rights, title and interest in the tenancy documents and the proceeds

in connection with Suntec City;

An assignment of Suntec REITs rights, title and interest in the insurance policies in relation to SuntecCity;

A fixed and floating charge over the assets of Suntec REIT in relation to Suntec City, agreements,collateral, as required by the financial institution granting the facilities; and

An assignment of any interest swaps facility, which may be entered into by Suntec REIT in relation tothe Facilities.

(b) On 28 April 2009, Suntec REIT obtained a secured facility of S$825.0 million Term Loan Facility with apanel of 7 banks to refinance all borrowings maturing in FY 2009. S$50 million had been drawn down asat 30 September 2009.

The Facilities are to be secured on the following:

A first legal mortgage on Suntec City Mall, Suntec City Tower 3 and Tower 4 (the Properties); A first fixed charge over the central rental collection account in relation to the Properties;

An assignment of Suntec REITs rights, title and interest in the property management agreement inrelation to the Properties; An assignment of Suntec REITs rights, title and interest in the tenancy documents and the proceeds

in connection with the Properties; An assignment of Suntec REITs rights, title and interest in the insurance policies in relation to the

Properties; A fixed and floating charge over the assets of Suntec REIT in relation to the Properties, agreements,

collateral, as required by the financial institution granting the facilities; and

An assignment of any interest swaps facility, which may be entered into by Suntec REIT in relation tothe term loan facility

(c) The interest-bearing borrowings (unsecured) comprise S$157.5 million from Sunshine Assets Limited viaa medium term note programme, S$650.0 million from various institutional banks and S$270.0 million ofconvertible bonds due 2013.


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1 (c) Cash flow statement

1/7/09 to

30/9/09

1/7/08 to

30/9/08

1/1/09 to

30/9/09

1/1/08 to

30/9/08S$'000 S$'000 S$'000 S$'000

Operating activities

Net income 34,523 44,975 94,291 111,298

Adjustments for:

Depreciation 11 21 43 95

Asset management fees paid in units 5,554 5,861 16,532 16,775

Net finance costs 9,022 16,922 37,090 29,345

Amortisation expense 6,522 6,597 19,353 19,647

Allowance for doubtful receivables 476 808 1,676 1,230

Share of profit of jointly controlled entity (3,645) (24,688) (7,690) (30,369)

Operating income before working capital changes 52,463 50,496 161,295 148,021

Changes in working capital

Trade and other receivables 888 (744) (524) 1,276

Trade and other payables (4,990) 9,602 (18) 19,566

Cash flow from operating activities 48,361 59,354 160,753 168,863

Investing activities

Interest received 3,095 1,767 10,679 6,660

Dividend received 945 - 6,805 2,898

Capital expenditure on investment properties 381 (845) (326) (2,167)

Purchase of plant and equipment (7) (19) (6) (82)

Net cash outflow on purchase of investment properties - (7,732) - (45,625)

Loan repayment from jointly controlled entity - - 4,000 -

Interest in jointly controlled entities (24,758) 6,267 (24,758) 5,126

Cash flow from investing activities (20,344) (562) (3,606) (33,190)

Financing activities

Proceeds from interest-bearing loans 33,000 450,000 133,000 584,500

Proceeds from issue of convertible bonds - - - 270,000

Financing costs paid (17,263) (18,539) (54,883) (48,688)

Repayment of interest-bearing loans (8,000) (400,000) (133,000) (779,000)

Distributions to unitholders (47,710) (42,019) (138,426) (103,078)

Cash flow from financing activities (39,973) (10,558) (193,309) (76,266)

Net (decrease) / increase in cash and cash equivalents (11,956) 48,234 (36,162) 59,407

Cash and cash equivalents at beginning of the period 29,850 24,636 54,056 13,463

Cash and cash equivalents at end of the period 17,894 72,870 17,894 72,870

GROUP

Footnotes:

The significant non-cash transactions for the quarter ended 30 September 2009 were as follows:

a) the Group will be issuing 431,074 units to the Manager amounting to S$470,000 on 2 October 2009as satisfaction of acquisition fees payable for the acquisition of a 20% interest in Suntec SingaporeInternational Convention & Exhibition Centre.

(b) the Group will be issuing a total of 5,093,803 units to the Manager amounting to S$5.6 million assatisfaction of asset management fees payable in units in respect of the financial quarter ended 30September 2009.


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The significant non-cash transactions for the nine months ended 30 September 2009 were as follows:

(a) the Group issued the third instalment of 34,500,362 units to Suntec City Development Pte Ltd on 9June 2009 as satisfaction of the deferred payment consideration for the initial portfolio of properties.

(b) the Group will be issuing 431,074 units to the Manager amounting to S$470,000 on 2 October 2009as satisfaction of acquisition fees payable for the acquisition of a 20% interest in Suntec SingaporeInternational Convention & Exhibition Centre.

(c) the Group has issued or will be issuing a total of 20,603,232 units to the Manager amounting toS$16.53 million as satisfaction of asset management fees payable in units in respect of the financialperiod ended 30 September 2009.

1(d)(i) Statement of movements in unitholders funds

1/7/09 to

30/9/09

1/7/08 to

30/9/08

YTD 1/1/09

to 30/9/09

YTD 1/1/08

to 30/9/08

S$'000 S$'000 S$'000 S$'000

Ba la nce at the beginning of the period 3,436 ,510 3,846,172 3,455,998 3,834,739

Operations

Total return after tax 33,738 56,396 92,180 121,573

Net increase in net a ssets resulting from

operations 33,738 56,396 92,180 121,573

Hedging transaction(a) 1,511 (2,008) 3,319 (5,607)

Unitholders' transactions

Units to be issued

- asset management fee payable in units (b) 5,554 5,861 16,532 16,775

- acquisition fee payable in units (c) 470 - 470 -

Distr ibutions to unitholders (47,710) (42,019) (138,426) (103,078)

Net decrease in net asse ts resulting from

unitholders' transactions (41,686) (36,158) (121,424) (86,303)

Unith olde rs' fund s as at end of perio d 3,430 ,073 3,864,402 3,430,073 3,864,402

Group


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1(d)(i) Statement of movements in unitholders funds (contd)

1/7/09 to

30/9/09

1/7/08 to

30/9/08

YTD 1/1/09

to 30/9/09

YTD 1/1/08

to 3 0/9/08

S$'000 S$'000 S$'000 S$'000

Balance at the beginning o f the period 3,3 44,320 3,707,547 3,363,808 3,697,119

Operations

Total return after tax 33,738 35,040 92,180 99,212

Net increase in net assets resulting from

operations 33,738 35,040 92,180 99,212

Hedging transaction(a)

1,511 (2,008) 3,319 (5,607)

Unitholders' transactions

Units to be issued

- asset management fee payable in units (b) 5,554 5,861 16,532 16,775

- acquisition fee payable in units (c) 470 - 47 0 -

Distributions to unitholders (47,710) (42,019) (138,426) (103,078)

Net decrease in ne t assets resulting from

unitholders' transactions (41,686) (36,158) (121,424) (86,303)

Unith olders' fund s as at end o f pe riod 3,3 37,883 3,704,421 3,337,883 3,704,421

Trust

Footnotes: Group and Trust

(a) This relates to the effective portion of the change in fair value of the interest rate swap, which has been

designated as a cash flow hedge.

(b) This represents the value of units issued and to be issued to the Manager as partial satisfaction of the

asset management fee incurred for the quarter. The units are to be issued within 30 days from quarterend.

(c) This represents the value of units to be issued to the Manager on 2 October 2009 as satisfaction of the

acquisition fee payable for the acquisition of a 20% interest in Suntec Singapore International Convention

& Exhibition Centre.


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1 (d)(ii) Details of any changes in the units since the end of the previous period reported on

1/7/09 to 30/9/09 1/7/08 to 30/9/08 1/1/09 to 30/9/09 1/1/08 to 30/9/08

Units Units Units Units

Issued units at the beginning of the period 1,622,622,074 1,527,998,838 1,571,198,028 1,486,619,198

Creation of units:

- as units issued for deferred consideration - - 34,500,362 34,500,362

- as payment for asset management fee 6,152,791 3,841,827 23,076,475 10,721,105

Issued units at the end of the period 1,628,774,865 1,531,840,665 1,628,774,865 1,531,840,665

Units to be issued:

- asset management fee payable in units(a)

5,093,803 4,857,001 5,093,803 4,857,001

- acquistion fee payable in units(b)

431,074 - 431,074 -

Issuable units at the end of the period 5,524,877 4,857,001 5,524,877 4,857,001

Deferred Units to be issued:

- as satisfaction of deferred consideration on

investment properties acquired(c)

103,501,084 172,501,808 103,501,084 172,501,808

103,501,084 172,501,808 103,501,084 172,501,808

Total issued and issuable units 1,737,800,826 1,709,199,474 1,737,800,826 1,709,199,474

GROUP AND TRUST

Footnotes:

(a) These are additional units to be issued to the Manager as partial satisfaction of asset management fee

incurred for the quarter.

(b) These are units to be issued to the Manager on 2 October 2009 as satisfaction of acquisition fee incurred

on the acquisition of a 20% interest in Suntec Singapore International Convention & Exhibition Centre.

(c) This refers to the 103,501,084 Deferred Units for the remaining of three of six equal instalments issued

semi-annually from 9 June 2008 (being the issue date of the first instalment) to Suntec City Development

Pte Ltd in satisfaction of the deferred payment consideration for the purchase of the initial portfolio

properties in December 2004.

Convertible Bonds Group & Trust

Suntec REIT has issued the following convertible bonds, which remained outstanding as at 30 September2009:

- $270 million of Convertible Bonds due in 2013 which are convertible by holders into units of Suntec REIT

at any time on or after 30 April 2008 at an adjusted conversion price of $1.797 per unit.

There has been no conversion of any of the above convertible bonds since the date of their issue.

Assuming the bonds are fully converted based on the adjusted conversion price, the number of new units to be

issued would be 150,250,417 ( 30 September 2008: 137,195,122), representing 9.2% ( 30 September 2008:

9.0%) of the total number of units of Suntec REIT in issue as at 30 September 2009.


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2. Whether the figures have been audited, or reviewed and in accordance with which standard(e.g. the Singapore Standard on Auditing 910 (Engagements to Review FinancialStatements), or an equivalent standard)

The figures for the nine-month period ended 30 September 2009 have not been audited but havebeen reviewed by the auditors in accordance with Singapore Standard on Review Engagements2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity.

3. Where the figures have been audited, or reviewed, the auditors' report (including anyqualifications or emphasis of matter)

Please see attached review report.

4. Whether the same accounting policies and methods of computation as in the issuer's mostrecently audited financial statements have been applied

Except as described in note 1(b)(i), the Group has applied the same accounting policies andmethods of computation as in the audited financial statements for the period ended 31 December2008.

5. If there are any changes in the accounting policies and methods of computation, includingany required by an accounting standard, what has changed, as well as the reasons for, andthe effect of, the change

Except as described in note 4 above, there is no change in the accounting policies and methods ofcomputation adopted.

6. Earnings per unit (EPU) and Distribution per unit (DPU) for the financial period

Earnings per unit

1/7/09 to 30/9/09 1/7/08 to 30/9/08YTD 1/1/09

to 30/9/09

YTD 1/1/08

to 30/9/08

Weighted average number of units 1,732,336,002 1,704,395,266 1,725,189,069 1,700,578,997

Basic earnings per unit for the period based on the

weighted average number of units in issue (cents) 1.948 3.308 5.343 7.149

Weighted average number of unitsa

1,882,586,419 1,841,590,388 1,725,189,069 1,796,419,007

Diluted earnings per unit for the period based on the

fully diluted basis (cents)(a)

1.890 2.996 5.343 6.797

GROUP

Footnote(a) For the purpose of calculating the diluted EPU, the weighted average number of units in issue is adjusted

to take into the account the dilutive effect arising from full conversion of convertible bonds to units, withthe potential units weighted for the period outstanding. For the nine-month period ended 30 September

2009, the convertible bonds were anti-dilutive and were excluded from the calculation of diluted EPU.


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Distribution per Unit

In computing the DPU, the number of units as at the end of each period is used for the computation. The DPU

for the Group and Trust are the same.

1/7/09 -

30/9/09

1/7/08 -

30/9/08

YTD 1/1/09

to 30/9/09

YTD 1/1/08

to 30/9/08

Number of issued and issuable units at end of period

entitled to distribution (excluding Deferred Units)(a)

1,634,299,742 1,536,697,666 1,634,299,742 1,536,697,666

Number of issued and issuable units at end of period

(including Deferred Units)(b)

1,737,800,826 1,709,199,474 1,737,800,826 1,709,199,474

Distribution per unit for the period based on the total

number of units entitled to distribut ion (cents) 2.921(1)

2.854 8.816(2)

8.166

Distribution per unit for the period including Deferred

Units (cents) 2.747 2.566 8.186 7.243

Group and Trust Group and Trust

(1) The distribution per unit for the quarter ended 30 September 2009 of 2.921 cents per unit (30 September 2008:2.854cents per unit) comprised a taxable income component of 2.543cents per unit (30 September 2008:2.434cents per

unit) and a tax exempt income component of0.378cents per unit (30 September 2008:0.42cents per unit).

(2) The distribution per unit for nine months ended 30 September 2009 of 8.816cents per unit comprised a taxable incomecomponent of7.886cents per unit and a tax exempt income component of0.930cents per unit.

Footnotes:

(a) The computation of actual DPU for the period from 1 July 2009 to 30 September 2009 is based on the

number of units entitled to the distribution:

(i) The number of units in issue as at 30 September 2009 of 1,628,774,865;

(ii) The units to be issued to the Manager on 2 October 2009 as satisfaction of acquisition fees incurredof 431,074; and

(iii) The units issuable to the Manager by 30 October 2009 as partial satisfaction of management fee

incurred for the period from 1 July 2009 to 30 September 2009 of 5,093,803.

(b) The computation of actual DPU for the period from 1 July 2009 to 30 September 2009 including Deferred

Units is based on:


(ii) The units to be issued to the Manager on 2 October 2009 as satisfaction of acquisition fees incurredof 431,074;


incurred for the period from 1 July 2009 to 30 September 2009 of 5,093,803; and

(iv) Deferred Units of 103,501,084 as at 30 September 2009. The Deferred Units being the remaining

balance of three equal instalments will be issued semi-annually to Suntec City Development Pte Ltd

as satisfaction of the deferred payment consideration for the purchase of the properties in December

2004.


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7. Net asset value (NAV) per unit at the end of current period

30/9/09 (a) 31/12/08 30/9/09 (a) 31/12/08

NAV per unit (S$) 1.974 2.013 1.921 1.959

GROUP TRUST

Footnotes:(a) The number of units used for computation of actual NAV per unit is 1,737,800,826. This comprised:


(ii) The units to be issued to the Manager on 2 October 2009 as satisfaction of acquisition fees incurredof 431,074;


incurred for the period from 1 July 2009 to 30 September 2009 of 5,093,803; and

(iv) The Deferred Units comprising 103,501,084 units, being the remaining balance of three equal

instalments will be issued semi-annually to Suntec City Development Pte Ltd as satisfaction of thedeferred payment consideration for the purchase of the properties in December 2004.

8. Review of the performance for the quarter ended September 2009

Gross revenue achieved for the quarter ended 30 September 2009 was S$61.9 million, an increaseof S$0.5 million or 0.8% over the quarter ended 30 September 2008 (3Q FY08). Net propertyincome for the quarter was S$47.0 million, an increase of S$1.4 million or 3.1% over thecorresponding period in 2008, and the income available for distribution of S$47.7 million was S$3.9million or 8.8% higher year-on-year.

The increase in gross revenue was mainly due to higher office revenue achieved during thequarter.

Gross office revenue achieved for the quarter was S$28.7 million, an increase of S$2.1 million or7.9% over 3Q FY08, driven mainly by higher rents achieved for Suntec City and Park Mall,including additional revenue from the Suntec City office strata space acquired in 2008. Suntec Cityoffice contributed approximately S$26.4 million in revenue whilst Park Mall office contributed S$2.3million in revenue for the period.

The overall committed occupancy for the office portfolio stood at 96.4% as at 30 September 2009.

Gross retail revenue achieved for the quarter was S$33.2 million, a dip of S$1.6 million or 4.6%over 3Q FY08, mainly due to lower revenue achieved for Suntec City Mall, partially offset by higherrevenue achieved for Park Mall and Chijmes. Suntec City Mall contributed approximately S$27.0million in revenue, whilst Park Mall and Chijmes contributed S$6.2 million in revenue for the period.

The overall committed occupancy for the retail portfolio stood at 99.1% as at 30 September 2009.

Property operating expenses incurred for the quarter was S$14.9 million, a decrease of S$0.9million or 5.9% over 3Q FY08. This was mainly due to lower property tax expense as there was ahigher provision made in 3Q FY08, as well as lower other property expenses. The cost-to-revenueratio for the quarter was 24.1%, compared to 25.8% in 3Q FY08.

Net financing costs incurred for the quarter was S$9.0 million, a decrease of S$7.9 million or 46.7%over 3Q FY08, mainly due to a net gain of S$1.3 million arising mainly from the remeasurement ofinterest rate swap transactions and convertible bonds, as compared to a net loss of S$5.5 million inthe corresponding period in 2008. This net gain/loss has no impact on the income available fordistribution.


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Excluding the remeasurement, the net financing cost for the quarter was approximately S$10.3million, a decrease of S$1.2 million over 3Q FY08. This was mainly due to higher interest incomeachieved during the quarter.

For the quarter, the overall all-in financing cost averaged 2.88%, and the gearing ratio stood at34.3% as at 30 September 2009.

Review of the performance YTD FY09 vs YTD FY08

Gross revenue achieved for YTD FY09 was S$191.4 million, an increase of S$14.7 million or 8.3%over YTD FY08. Net property income for the period was S$145.0 million, an increase of S$10.8million or 8.1% over YTD FY08, and the income available for distribution of S$141.8 million wasS$18.3 million or 14.8% higher than in YTD FY08.

The increase in gross revenue was due to higher office and retail revenues achieved during theperiod.

Gross office revenue achieved for YTD FY09 was S$89.2 million, an increase of S$14.3 million or19.0% over YTD FY08, driven by higher rents achieved for Suntec City and Park Mall, includingadditional revenue from the Suntec City office strata space acquired in 2008.

Gross retail revenue achieved for YTD FY09 was S$102.2 million, an increase of S$0.5 million or0.5% over YTD FY08, driven mainly by higher retail revenue achieved at Park Mall and Chijmes.

Property operating expenses incurred for YTD FY09 was S$46.4 million, an increase of S$3.9million or 9.2% over YTD FY08, mainly due to higher property tax expense resulting from higherrevenue in YTD FY09 and the write-back of property tax provision in YTD FY08. This was partiallyoffset by lower other property expenses. The cost-to-revenue ratio for the period was 24.2%.

Net financing costs incurred for YTD FY09 was S$37.1 million, an increase of S$7.7 million overYTD FY08. This was attributed mainly to a net loss of S$6.2 million arising from theremeasurement of interest rate swap transactions and convertible bonds, as compared to a netgain of S$7.0 million in the corresponding period in 2008. This net gain/loss has no impact on theincome available for distribution.

Excluding the remeasurement, the net financing cost for YTD FY09 was S$30.8 million, a decreaseof S$5.5 million over YTD FY08, mainly due to higher interest income and lower interest expenseachieved during the period.

9. Variance between the forecast and actual results

Not applicable.

10. Commentary on the competitive conditions of the industry in which the group operates andany known factors or events that may affect the group in the next reporting period and thenext 12 months

According to advance estimates from the Ministry of Trade and Industry (MTI), Singapores GDPregistered a 0.8% growth year-on-year in the third quarter of 2009, compared to a contraction of3.5% in the previous quarter.

MTI also noted improvements in the trade-related and tourism sectors of the economy, led byincreasing signs of stability in global economic conditions. It is of the view that although amoderate economic recovery is expected in the next few quarters, global demand remains weakand external macroeconomic conditions will have a significant impact on Singapores economicgrowth in 2010. With a reduced likelihood of a recession barring any further financial shocks, theofficial GDP growth forecast for 2009 was upgraded to between minus 2% to minus 2.5%, up fromminus 4% to minus 6% previously.


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According to property consultant CB Richard Ellis (CBRE)1, Singapore prime office rents declined

to an average of S$7.50 per sq ft per month whilst Grade A office rents declined to an average ofS$8.80 per sq ft per month in the quarter ended September 2009. CBRE also reported more activeleasing activity during the quarter following the improved economic outlook, and although netdemand for office space likely to remain negative for the rest of 2009, CBRE is of the view that theoffice market will start to recover in 2010.

The Singapore retail sector continued to face pressures from weak consumer spending. Accordingto CBRE, prime Orchard Road rents declined to an average of S$32.90 per sq ft per month duringthe quarter. Despite the uncertain economic conditions, the Singapore retail landscape continuesto be vibrant as it develops into one of the major shopping hubs in Asia.

Outlook for the Financial Year 2009

Barring any unforeseen circumstances, the Manager expects Suntec REITs financial performancefor the year ending 31 December 2009 to remain stable.

11. Distributions

(a) Current financial period

Any distribution declared for thecurrent period?

Yes

Name of distribution Distribution for the period from 1 July 2009 to 30September 2009

Distribution Rate i) Taxable income distribution 2.543 cents per unitii) Tax-exempt income distribution 0.378 cents per

unit

Distribution Type i) Taxable incomeii) Tax-exempt income

Par value of units Not meaningful

Tax Rate Taxable incomeThese distributions are made out of Suntec REITstaxable income. Unitholders receiving distributions willbe assessable to Singapore income tax on thedistributions received except for individuals where thesedistributions are exempt from tax (unless they hold theirunits through partnership or as trading assets).

Tax-exempt incomeTax-exempt income distribution is exempt from tax in thehands of all Unitholders.

Remark Nil

1CB Richard Ellis Market View Singapore 3Q 2009


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(b) Corresponding period of the immediately preceding financial period

Any distribution declared for thecorresponding period of theimmediately preceding financialyear?

Yes

Name of distribution Distribution for the period from 1 July 2008 to 30

September 2008

Distribution Rate i) Taxable income distribution 2.434 cents per unitii) Tax-exempt income distribution 0.42 cents per

unit

Distribution Type i) Taxable incomeii) Tax-exempt income

Par value of units Not meaningful

Tax Rate Taxable incomeThese distributions are made out of Suntec REITstaxable income. Unitholders receiving distributions willbe assessable to Singapore income tax on the

distributions received except for individuals wherethese distributions are exempt from tax (unless theyhold their units through partnership or as tradingassets).

Tax-exempt incomeTax-exempt income distribution is exempt from tax inthe hands of all Unitholders.

Remark Nil

(c) Date payable: 26 November 2009

(d) Books Closure Date: 4 November 2009

12. If no distribution has been declared/(recommended), a statement to that effect

Not applicable.


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13. Confirmation pursuant to Rule 705(4) of the Listing Manual

To the best of our knowledge, nothing has come to the attention of the Board of Directors of theManager of Suntec REIT (the Manager) which may render the unaudited interim financialstatements of the Group and Trust (comprising the balance sheet as at 30 September 2009,statement of total return & distribution statement, cash flow statement and statement of changes inunitholders funds for the quarter ended on that date), together with their accompanying notes, tobe false or misleading, in any material aspect.

On behalf of the Board of the ManagerARA TRUST MANAGEMENT (SUNTEC) LIMITED

Lim Hwee Chiang, John Yeo See KiatDirector Director and Chief Executive Officer


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This release may contain forward-looking statements that involve risks and uncertainties. Actual future performance,

outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of

risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry

and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments,

shifts in expected levels of property rental income, changes in operating expenses (including employee wages, benefits and

training costs), property expenses and governmental and public policy changes and the continued availability of financing in

the amounts and the terms necessary to support future business. Investors are cautioned not to place undue reliance onthese forward-looking statements, which are based on the current views of management on future events.

The value of units in Suntec REIT (Units) and the income derived from them, if any, may fall or rise. Units are notobligations of, deposits in, or guaranteed by, ARA Trust Management (Suntec) Limited (as the manager of Suntec REIT) (theManager) or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of theprincipal amount invested.

Investors should note that they will have no right to request the Manager to redeem or purchase their Units for so long as the

Units are listed on Singapore Exchange Securities Trading Limited (the SGX-ST). It is intended that holders of Units may

only deal in their Units through trading on the SGX-ST. The listing of the Units on the SGX-ST does not guarantee a liquid

market for the Units.

The past performance of Suntec REIT is not necessarily indicative of the future performance of Suntec REIT.

Pro Forma Impact of Deferred Units Issuance

Suntec City Development Pte Ltd, the vendor of Suntec City Mall and Suntec City Office Towers (both as defined in the

prospectus dated 29 November 2004 (the Prospectus) issued in connection with the initial public offering of Units in

November/December 2004 and together, the Properties), will be issued with 207,002,170 additional Units (the Deferred

Units) in satisfaction of the deferred payment consideration for the purchase of the Properties. The Deferred Units will be

issued in six equal instalments. The first, second and third instalments were issued on 9 June 2008 (being the date falling 42

months after 9 December 2004 which is the date of completion of the sale and purchase of the Properties), 9 December 2008

and 9 June 2009 respectively, and the rest of the instalments will be issued semi-annually thereafter. Any change in rental

rates, occupancy rates and distributable income of Suntec REIT can affect the impact of any dilution in the yields of Suntec

REIT arising from the issuance of the Deferred Units in the future. The table below illustrates the pro forma impact under the

scenario where the Deferred Units were entirely issued on 9 December 2004, the date of admission of Suntec REIT to the

Official List of the SGX-ST (the Listing Date):

Distribution per unit (DPU) under the scenario that all Deferred

Units are issued on the Listing Date

Actual(1 July 2009 30 September 2009)

DPU based on total number of Units

entitled to the distribution (cents)

2.921

DPU assuming Deferred Units were issued on

the Listing Date (cents)

2.747

BY ORDER OF THE BOARDARA TRUST MANAGEMENT (SUNTEC) LIMITEDAS MANAGER OF SUNTEC REAL ESTATE INVESTMENT TRUST(Company registration no. 200410976R)

Yeo See KiatDirector27 October 2009

suntec reits q3 results

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