Starhill Global Reit post 7.1% drop in Q2 DPU

STARHILL Global Reit on Monday reported a 7.1 per cent drop in distribution per unit (DPU) for the fiscal second quarter ended Dec 31, 2017 to 1.17 Singapore cents.

This was mainly due to lower net property income, the effects of straight-line rental adjustments, and higher withholding taxes for Malaysia and Australia Properties, said its real estate investment trust (Reit) manager YTL Starhill Global Reit Management.

Gross revenue fell 3 per cent to S$52.46 million, dragged by weaker contributions from offices, disruption of income from ongoing asset redevelopment works at Plaza Arcade in Perth and lower revenue at Myer Centre Adelaide. Net property income (NPI) slipped 2.2 per cent to S$40.5 million.

Representing an annualised distribution yield of 5.99 per cent, the fiscal second-quarter DPU is expected to be paid out on Feb 28.

Francis Yeoh, chairman of YTL Starhill Global, said that the synchronised and broad-based economic growth is expected to trickle down positively into the Singapore retail scene in the foreseeable future.

"Earlier initiatives to rejuvenate the portfolio have been timely, setting Starhill Global Reit in a good position to ride on any retail sector upturn. We will continue to recalibrate our portfolio and sieve out opportunities, with the aim of creating long-term value for our unitholders."

YTL Starhill Global Reit Management said that asset redevelopment works at Plaza Arcade and Lot 10 are on schedule to complete in the first quarter of 2018. Global apparel retailer Uniqlo will also open its first Perth flagship store in Plaza Arcade in mid-2018.