Starhill Global Reit DPU for H1 FY20/21 down 16.8%

STARHILL Global Reit will pay a distribution per unit (DPU) of 1.88 Singapore cents for the first half-year ended Dec 31, 2020, down 16.8 per cent from a year ago.

Net property income (NPI) fell 12.3 per cent to S$65 million, while gross revenue dipped 8.6 per cent to S$88.4 million, mainly due to rental assistance for its eligible tenants affected by the Covid-19 pandemic, including allowance for rental arrears and rebates for Singapore and Australia properties.

Income to be distributable to unitholders stood at S$41.4 million, down 16.1 per cent from a year ago. This comes as the manager retained S$4.9 million of income available for distribution, even as it pays out S$3.1 million of deferred distributable income from FY19/20.

Starhill Global Reit will be activating its maiden Distribution Reinvestment Plan (DRP) for the H1 FY20/21 distribution, with the issue price of new units to be announced on or around Feb 5, 2021.

Unitholders can expect to receive their H1 FY20/21 DPU on March 25, 2021, with the record date on Feb 5, 2021.

As at Dec 31, 2020, the weighted average portfolio lease expiry by gross rent stood at 5.4 years while retail leases expiring in the financial year ending June 30, 2021 comprised 8.8 per cent of gross retail rent. The group's retail portfolio committed occupancy stood at 97.6 per cent.

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Starhill Global Reit's Singapore retail portfolio - comprising interests in Wisma Atria and Ngee Ann City on Orchard Road - registered an actual occupancy of 96 per cent as Dec 31, 2020.

The Reit manager said that tenant sales and footfall traffic at Wisma Atria continue to recover gradually to about two-thirds and about half of pre-Covid-19 levels in H1 FY20/21 following Phase 2 and Phase 3 reopening. It added that the Singapore office portfolio remained resilient with an actual occupancy of 89.5 per cent. Its total Singapore portfolio contributed about 62.4 per cent of total revenue.

The Reit manager said that its Australian retail portfolio registered actual occupancy of 94.6 per cent as at Dec 31, 2020. Its Australian portfolio contributed about a quarter of total revenue for the period.

The rest of the Reit's portfolio markets include Malaysia, Japan and China, which make up less than 15 per cent of total revenue.

On the results, Francis Yeoh, chairman of YTL Starhill Global, said: "The global economy is starting to recover, and the outlook appears positive with the availability of vaccines. Whilst we remain vigilant given the fluidity of the pandemic, we intend to emerge stronger and seek out growth opportunities when they arise."

Units of Starhill Global Reit closed at 50.5 Singapore cents on Thursday, down one Singapore cent or 1.94 per cent prior to the announcement.