SINGAPORE (July 30): The manager of Starhill Global REIT (Starhill REIT) has declared a 4Q19 DPU of 1.10 cents, 0.9% higher than 1.09 cents in 4Q18.

For the full year ended June, DPU came in at 4.48 cents, 1.5% lower than 4.55 cents in FY18.

Gross revenue for the quarter slightly increased by 0.4% to $51.9 million from $51.6 million a year ago, mainly due to higher contributions from the office portfolio and Myer Centre Adelaide, partially offset by lower contributions from the retail portfolio in Singapore – Wisma Atria and Ngee Ann City – and the depreciation of AUD and MYR against SGD. Approximately 39% of the total gross revenue were contributed by the overseas properties.

Property expenses increased by 3.2% to $12.0 million from $11.6 million last year, due mainly to a 20.3% y-o-y increase in other property expenses, as a result of higher leasing and upkeep expenses for Wisma Atria Property and administrative expenses for Ngee Ann City Property, as well as higher operating expenses including allowance for rental arrears for Australia Properties.

With property expenses increasing more than gross revenue, net property income remained flat in 4Q19 at $40.0 million compared to the corresponding year.

Non-property expenses increased by 6.8% to $15.1 million from $14.1 million in the previous year.

During the quarter, the REIT recorded a loss from change in fair value of derivative instruments of $4.5 million, compared to a gain of $0.6 million in 4Q18.

At the end of June, the REIT’s cash and cash equivalents stood at $72.9 million.

Starhill REIT’s portfolio comprises 257 strata lots representing 74.23% of the total share value of the strata lots in Wisma Atria; 4 strata lots representing 27.23% of the total share value of the strata lots in Ngee Ann City; Myer Centre Adelaide; David Jones Building; Plaza Arcade in Adelaide and Perth; Starhill Gallery; 137 strata parcels and two accessory parcels within Lot 10 shopping centre; Chengdu Xin Hong Property; and two properties in Tokyo.

Francis Yeoh, chairman of the manager, says, “We are happy to have concluded the new master tenancy agreements for Malaysia properties and grateful for the tremendous support from Unitholders at the extraordinary general meeting. The new master tenancy agreements will provide long-term income stability with periodic rental step-up, while Starhill Gallery will be rejuvenated following a planned asset enhancement.”

Units in Starhill REIT closed at 80 cents on Tuesday.