Suntec

Suntec: 2Q14 results in line. DPU was up 0.8% y/y to 2.266¢ while distributable income rose 11.3% to $56.6m. Revenue increased 45.1% while NPI rose 64.9% to $68.1m and $46.1m respectively thanks to the opening on Suntec Singapore Convention & Exhibition Centre following completion of AEI. Aggregate leverage stood at 34.1% with all-in financing cost of 2.62%. Office enjoyed portfolio occupancy of 99.7%, while retail occupancy stood at 97.6%. Phase 2 of Suntec City AEI was reopened in June, while Phase 3 is expected to be completed by end 2014. Nomura cites hefty valuations, even on FY15e basis, and expects initial reaction to be negative. NAV stood at $2.069, translating to 0.9x P/B. Annualized 2Q14 yield is 4.9%. Latest broker results: Deutsche maintains Hold with TP of $1.68 Nomura maintains Neutral with TP of $1.68