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Starhill Global REIT's 1HFY2023/2024 DPU down 2.2% y-o-y to 1.78 cents

Bryan Wu
Bryan Wu • 3 min read
Starhill Global REIT's 1HFY2023/2024 DPU down 2.2% y-o-y to 1.78 cents
Wisma Atria, which is part of the REIT's portfolio.
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Starhill Global REIT P40U -

has reported a distribution per unit (DPU) of 1.78 cents for the 1HFY2023/2024 ended Dec 31, 2023, 2.2% lower than the DPU of 1.82 cents for the same period the year before.

For the half-year period, the REIT’s gross revenue dipped marginally by 0.1% y-o-y to $94.6 million while net property income (NPI) increased by 0.3% y-o-y to $74.5 million.

The improved NPI was mainly due to the REIT’s properties in Singapore and Myer Centre Adelaide Retail in Australia, and was partially offset by net movement in foreign currencies and a loss of income from its Japanese divestment.

Distributable income for the 1HFY2023/2024 fell by 3.8% y-o-y to $41.9 million, mainly due to higher net financing costs and one-off leasing commission fee in relation to the master lease renewal with Toshin Development Singapore at Ngee Ann City Property (Retail) during the period.

According to the manager, the REIT will resume its distribution reinvestment plan (DRP) for the 1HFY2023/2024 distribution. The issue price of new units for the DRP will be announced on or around Feb 6, while unitholders will be paid on March 25.

As at June 30, the REIT’s committed portfolio occupancy stood at 98.7%. Meanwhile, following the renewal of the Toshin master lease, its portfolio weighted average lease expiry (WALE) stood at 7.9 years by net lettable area (NLA).

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The REIT’s gearing as at end-December 2023 stood at 36.8% while its portfolio valuation stood at $2.8 billion.

Cash and cash equivalents as at the same date stood at $62.7 million.

“The global economic outlook remains uncertain with elevated interest rates, geopolitical conflicts and volatility in financial markets. Despite these challenges, Starhill Global REIT mitigated headwinds with its portfolio of quality assets backed by master/anchor leases and prudent capital management,” says Tan Sri Francis Yeoh, chairman of the manager.

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“The manager will continue its proactive asset management strategy to ensure the malls remain relevant for shoppers and healthy occupancies are maintained, as well as exercise prudence in its capital management approach amid high interest rates and foreign exchange volatility,” he adds.

“Our Singapore portfolio achieved full committed occupancy with higher tenants’ sales at Wisma Atria despite ongoing renovation works. During the period, we successfully renewed our master lease with Toshin which provided certainty and continuity to both Toshin and us. The renewed master lease will allow Starhill Global REIT to also participate on the upside with a new profit-sharing arrangement,” says Ho Sing, CEO of the manager.

Units in Starhill Global REIT closed unchanged at 50.5 cents on July 27.

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