Starhill Global Reit posts 1.6% rise in H2 DPU to S$0.0188

[SINGAPORE] Starhill Global Real Estate Investment Trust’s (Reit) distribution per unit (DPU) rose 1.6 per cent to S$0.0188 for its second half ended Jun 30, 2026, from S$0.0185 in the year-ago period.

The distribution will be paid out on Sep 24, after the record date on Aug 6, noted the manager in a bourse filing on Wednesday (Jul 29).

Income available for distribution for the half-year period rose 3.6 per cent year on year to S$46.1 million.

This came on the back of higher net property income (NPI), which grew grew 1 per cent on year to S$75.3 million, from S$74.5 million; lower net finance costs, as well as lower legal fees.

The manager said that it will retain about S$2.5 million of income available for distribution for the period for working capital requirements.

Meanwhile, income to be distributed to unitholders stood at S$43.7 million, up 2.7 per cent on year from S$42.5 million.

Revenue was up 0.4 per cent at S$96.2 million for the half-year period, from S$95.8 million in the corresponding period last year.

This was in line with stronger contributions from Ngee Ann City in Singapore and Lot 10 in Kuala Lumpur, as well as the appreciation of the Australian dollar and Malaysian ringgit against the Singapore dollar, noted the manager.

However, the gains were partially offset by the divestment of certain Wisma Atria office strata units and lower contributions from the Myer Centre Adelaide office, Wisma Atria Retail and China Property, a retail asset in Chengdu in the Sichuan province. The manager also noted higher rental arrears provision.

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Improved operational performance

The Reit’s full-year DPU stood at S$0.0368, up 0.8 per cent from S$0.0365 in FY25.

Full-year NPI also rose 0.1 per cent to S$150.3 million from S$150.2 million a year ago. Meanwhile, revenue for FY26 was up 0.2 per cent on the year to S$192.5 million, and income available for distribution for the period grew by 1.7 per cent to S$89.3 million.

The group’s portfolio valuation stood at about S$2.7 billion. The figure would have reflected a 0.2 per cent year-on-year increase if not for the divested 14 strata office lots in Wisma Atria in FY25/26.

As at Jun 30, the group’s strata title interest in Wisma Atria stood at 64.1 per cent.

While Wisma Atria’s shopper traffic climbed 0.4 per cent year on year, tenant sales declined 3.7 per cent.

The Reit’s committed portfolio occupancy stood at 97.2 per cent as at Jun 30, with a portfolio weighted average lease term expiry of seven years by net lettable area. Gearing was stable at 35.8 per cent, while the average debt maturity profile “remains healthy” at 3.3 years, said the manager.

Kemmy Tan, Starhill Global Reit’s chief executive, noted that the group has secured a pipeline of new-to-mall tenants for the coming quarters.

“Underpinned by our current financial position, we will step up our pursuit of accretive acquisition opportunities while exploring and evaluating asset enhancement initiatives across our existing portfolio,” noted Tan.

The manager’s chairman Francis Yeoh said: “The global environment has undergone a meaningful shift in recent years, as longstanding norms have been reshaped to a more multipolar order.”

He added that heightened macroeconomic volatility requires “greater agility and discipline” to navigate the landscape ahead.

Units of Starhill Global Reit closed 1.8 per cent or S$0.01 higher at S$0.56 on Wednesday, before the results were released.