0712 GMT - Suntec Real Estate Investment Trust likely needs a larger divestment transaction, potentially involving a Singapore asset, to move the needle for its balance-sheet strength and capital recycling capacity, says DBS Group Research's Dale Lai in a note. The scope of the REIT's strategic review was narrower than the analyst would have liked. He says that the Australian asset sales might not create sufficient capacity for a large acquisition from its sponsor. "Overall, we see the current exercise as a positive first step, but not yet the full portfolio reset," he says.A more substantial reshaping of the portfolio might be necessary if management intends to pursue meaningful inorganic growth, he adds. DBS retains its buy rating and 1.70 Singapore dollar target price. Units drop 1.45% to S$1.36.