Starhill Global Reit H1 FY2024 DPU falls 2.2% to S$0.0178
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Benjamin Cher
STARHILL Global Real Estate Investment Trust’s (Reit) distribution per unit (DPU) fell 2.2 per cent to S$0.0178 in the first half of FY2024 ended Dec 31, 2023, from S$0.0182 a year earlier, its manager said on Monday (Jan 29).
The fall in DPU was in tandem with the fall in income available for distribution, which fell 3.8 per cent to S$41.9 million in H1 FY2024 from S$43.6 million in H1 FY2023.
This was driven by higher net finance costs and a one-off leasing commission fee for a master lease renewal with Toshin, the speciality store manager of Takashimaya at Ngee Ann City.
Gross revenue fell as well, by 0.1 per cent to S$94.6 million in H1 FY2024, from S$94.7 million a year earlier.
Net property income, however, rose 0.3 per cent to S$74.5 million, from S$74.3 million in H1 FY2023.
This increase was mainly driven by the Reit’s properties in Singapore and the Myer Centre Adelaide shopping mall in Australia. It was partially offset by net movement in foreign currencies and the loss of income arising from the divestment of a Tokyo property in December 2022.
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As at Dec 31, 2023, the Reit’s committed portfolio occupancy was at 98.7 per cent, and its portfolio weighted average lease term expiry was extended to 7.9 years after the renewal of the master lease with Toshin.
“The renewed master lease will allow Starhill Global Reit to also participate on the upside with a new profit-sharing arrangement,” said Ho Sing, chief executive of the Reit’s manager.
The Toshin renewal is for an initial term of 12 years commencing from Jun 8, 2025, to Jun 7, 2037, with an option for a renewal of another six years by either party, and a further three years by Toshin.
The agreement has an annual turnover rent component, comprising Toshin’s annual operating income over and above the agreed revenue and profit margin thresholds.
Starhill Global Reit’s gearing stands at 36.8 per cent as at Dec 31, 2023, with an average debt maturity profile of three years.
Units of Starhill Global Reit closed up 1 per cent or S$0.005 to S$0.51 on Monday, before the news.
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