Suntec

Suntec: 1Q13 results slightly below street estimates; 1Q distributable income declined 8.4% y/y to $50.3m, as DPU declined 9.2% y/y to 2.228¢; the DPU included a 0.12¢ capital distribution from the Chijmes proceeds- excluding that DPU would have fallen 14% y/y; NPI of $30.7m declined 37.4% y/y mainly due to partial closure of Suntec City Mall and Suntec Spore for AEI works. This was partially mitigated by higher office income, with Suntec office revenues, at $29.9m, up 8% y/y and 1% q/q due to positive rental reversions for office space. Retail portfolio overall committed occupancy 99.4%; Office portfolio overall committed occupancy 99.7%; The stock trades at 0.96x P/B (vs. LT avg of 0.8x), offering FY13e and FY14e yields of 4.6% and 4.8% respectively, implying 320bps spread (LT avg of 502bps). Broker recommendations: UOB Kay Hian maintains BUY with TP of $2.27; CS maintains UNDERPERFORM with TP of $1.65; DB maintains HOLD, increasing TP to $1.87; Nomura maintains NEUTRAL with TP of $1.68;