You are new analysts with a top broker in Singapore and your main role is to make stock recommendations based on fundamentals to retail clients of your firm.

As you are new analysts, you are assigned to work in a team. In addition, the team needs to follow a rigorous set of guidelines and methodology. Lastly, the team is to summarise the findings and substantiate their recommendations in a professional research report.

Company choose is Suntec Real Estate Investment Trust

Question 1

(a) In the preparation of your report, indicate the assumptions used about the companys business environment.

Statement of total return 1/1/20 to 30/6/20 S$'000 Group 1/1/19 to 30/6/19 S$'000 Change % -16.1% 0.0% 17.0% 149,448 (19,701) (4,034) (13,738) (21,070)| (58,543) 90,905 178,073 (19,701) (4,860) (11,786) (27,165) (63,512) 114,561 -16.6% 22.4% 7.8% -20.6% n.m. Gross revenue Maintenance charges Property management fees (6) Property tax (c) Other property expenses Property expenses Net property income Other income Share of profit of joint ventures Finance income) Finance expenses Asset management fees - base fee) Asset management fees - performance fee Trust expenses Net income Net change in fair value of financial derivatives () Net change in fair value of investment properties Total return before tax Income tax expense (m) Total return for the period after tax Attributable to: Unitholders Non-controlling interests Total return for the period 1,881 35,690 11,229 (48,932) (17,776) (6,845) (2,156) 63,996 (33,173) (66,596) (35,773) (912) (36,685) 60,673 41.2% 15,103 -25.7% (54,256) 9.8% (16,737) -6.2% (7,499) 8.7% (1,897) -13.7% 109,948 -41.8% (6,967) -376.1% n.m. 102,981 -134.7% (2,156) 100,825 57.7% -136.4% (1,604) (35,081) (36,685) 100,977 -101.6% (152) -22979.6% 100,825 -136.4% Group Statement of total return 1/1/20 to 30/6/20 S$'000 Group 1/1/19 to 30/6/19 S$'000 Change % -16.1% 0.0% 17.0% 149,448 (19,701) (4,034) (13,738) (21,070)| (58,543) 90,905 178,073 (19,701) (4,860) (11,786) (27,165) (63,512) 114,561 -16.6% 22.4% 7.8% -20.6% n.m. Gross revenue Maintenance charges Property management fees (6) Property tax (c) Other property expenses Property expenses Net property income Other income Share of profit of joint ventures Finance income) Finance expenses Asset management fees - base fee) Asset management fees - performance fee Trust expenses Net income Net change in fair value of financial derivatives () Net change in fair value of investment properties Total return before tax Income tax expense (m) Total return for the period after tax Attributable to: Unitholders Non-controlling interests Total return for the period 1,881 35,690 11,229 (48,932) (17,776) (6,845) (2,156) 63,996 (33,173) (66,596) (35,773) (912) (36,685) 60,673 41.2% 15,103 -25.7% (54,256) 9.8% (16,737) -6.2% (7,499) 8.7% (1,897) -13.7% 109,948 -41.8% (6,967) -376.1% n.m. 102,981 -134.7% (2,156) 100,825 57.7% -136.4% (1,604) (35,081) (36,685) 100,977 -101.6% (152) -22979.6% 100,825 -136.4% Group